How publishers can prevent cyberattacks after Fast Company’s hack

A hacking scheme that hit Fast Company on Sept. 27 has kept the website dark for nearly a week as executives investigate. The event should be taken as a warning sign to other publishers to take cybersecurity seriously, three current and former heads of technology at media companies told Digiday.

“This could happen to anyone,” said Eli Dickinson, co-founder and CTO at Industry Dive. “We are all vulnerable.”

A “dedicated attacker” is difficult to defend against, said Dickinson, who oversees tech and security at the publication. All it takes is “to just trick one person.”

Suggestions of nefarious activity began last Tuesday, after Fast Company’s content management system was hacked and offensive push notifications were sent through Apple News. This came after an “apparently related” hack of Fast Company’s website on Sept. 25 which shut down the website for a few hours, according to a statement on its website. (Inc., Fast Company’s sister site owned by Mansueto Ventures, was also shut down as a precaution). As of Monday evening, both sites were still down.

Jordan Scoggins, former IT director at Quartz, said this should be a “wake-up call” to other publishers. “Too many companies don’t take security seriously enough until it’s too late,” he said.

In its statement, Fast Company said it has retained a global incident response and cybersecurity firm to investigate the security breach, though it did not name which firm. Fast Company has posted a few stories to Medium and LinkedIn in the meantime, but wouldn’t comment further.

When asked what security measures — if any — were in place at Fast Company at the time of the attack; a company spokesperson declined to comment.

To prevent these types of attacks, Scoggins said, publishers should have a “multi-pronged approach” to cybersecurity that is “constantly assessed and evaluated and evolved over time.”

Here are some notable tactics, from conversations with current and former media company CTOs and IT directors.

Multi-factor authentication

Technology executives Digiday spoke with stressed the importance of multi-factor authentication. At its most basic, this process often requires an employee to log into the company’s website, get a text to their cell phone with a code and enter that code to get into the CMS, authenticating that employee’s identity.

Some companies use a hardware security key, which is essentially a thumb drive that an employee plugs into a computer to log into the website from a new device. This “rules out a whole category of attacks,” said Dickinson.

In terms of access, Dickinson said “the principle of least-privileged” can also help minimize the possibility of getting hacked: each employee has the least amount of access necessary to do their job. “Probably only very few people need to be able to send push alerts, for example,” he said.

‘Zero trust

A buzzy term in the world of cybersecurity is “zero trust.” This is the idea that “every person and every device has to authenticate every service individually,” Dickinson said. Services like iboss create an “edge” security platform — or firewall — where a user can’t get into a CMS unless they are using a device with that service installed, for example. Zero-trust services essentially whitelist certain VPNs or IP addresses. Christopher Park, CMO at iboss, likened it to a TSA security checkpoint at an airport.

Getting every employee to have a strong password is difficult, sources said. Multi-factor authentication and the principle of “zero trust” are tactics that can help prevent hacks, even if an employee has a weak password.

Training

Companies should have security training for all employees, at least annually. This is often in the form of online classes, which walk employees through the dos and don’ts of cybersecurity, such as not clicking on suspicious links in an email and not sharing passwords. While described as “boring” and “annoying” by a few tech executives Digiday spoke with, these training sessions can help employees understand best practices, how to look out for phishing attacks and how to use more secure tools such as password management systems.

Penetration tests

Publishers can pay an outside company to try to hack into their websites to find weaknesses in their cybersecurity measures. These services “test for holes” and should be done at least once a year, Scoggins said.

“With the pace of technology, environments change constantly… so it has to be constantly assessed,” he said.

The challenge: small teams, and remote work

Internal IT teams at media companies — especially smaller ones — are usually stretched thin. Few companies have dedicated CTOs or information security officers, or a team devoted to overseeing these responsibilities.

The shift to remote work has also made some companies more vulnerable to cybersecurity threats, with more employees using personal devices and unsecure home Wi-Fi networks.

“The way that data applications and users interact with other services has all changed. They used to be in data centers; they used to be in offices. Nowadays, with applications like [software-as-a-service] applications in the cloud and users being remote, those applications that people log into are now exposed to the public,” said Park.

If and when a security breach happens, there needs to be a plan in place to determine what to do next to minimize harm and recover, Dickinson said.

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How sportsbooks and publishers are rethinking the terms of content-based sponsorships

The start of the American football season is like ringing in the new year for the sports betting industry. And this latest season seems to mark a new austerity era for dealings between sportsbooks and publishers.

“[Two years ago] was like the silly season of investing in massive marketing budgets that return [bettors acquired through paid marketing] at really gigantic levels, and all of that was in search of scale,” said Liam Roecklein, svp of content at sportsbook PointsBet. Now, “there’s much more of a search for fiscal responsibility [so] we need to take this approach [of prioritizing organic customer acquisition]. As a disruptor brand, we have less money to invest in traditional marketing.” 

Unlike the past few years, 2022 is not seeing a growth economy. Therefore, the marketing budgets that some sportsbooks are working with are a lot leaner than before. Caesars, for example, announced during its first quarter earnings call in May that it was cutting marketing spend on Caesars Sportsbook by $250 million. And The Washington Post reported that U.S. sportsbooks are trying to get savvier about the use of high-yield promo offers that promise first-time bettors deposit matches of thousands of dollars or no-risk first bets up to $5,000. 

As a result, the relationships between sportsbooks and publishers are changing as well, particularly with deals moving away from the traditional cost-per-acquisition model. That model was a win for publishers with audiences that had a high propensity for sports betting, as it paid anywhere from $250 to $500 for each first-time depositor they referred to sportsbooks. But it is also a risk for those media companies whose audiences did not fall in that category.

The CPA model is no longer as affordable, and sportsbooks like PointsBet and FanDuel are reconsidering how content fits into their content acquisition strategies altogether, including looking for ways to bring content production in-house and signing deals that rely on different payment models like revenue shares or flat fees. Meanwhile, publishers are looking for deals that offer them more guarantees.

Taking the content strategy in-house

The content team within PointsBet, which Roecklein oversees, is working to build a media brand that “delights” the platforms’ users. The hope is they become evangelists for the content and the platform, and get their friends to sign up for the sportsbook and make a deposit by word of mouth or sharing the content his team produces. 

One content product Roecklein is working on is a thrice-per-week newsletter called PointsBet Hustle that was created through a white-labeled content and technology partnership with Front Office Sports, which was a flat-fee payment deal. The newsletter is produced by PointsBet’s senior editor Teddy Greenstein, but uses FOS’s expertise to craft the subject lines, body and other elements.

The origin of this partnership came from PointsBet’s desire to find ways to decrease its customer acquisition costs, according to Adam White, CEO of Front Office Sports, who spoke on stage last month about this deal during the Digiday Publishing Summit in Key Biscayne, Fla.

By creating and operating this newsletter, PointsBet can, in theory, organically grow that readership and convert those subscribers into bettors without paying anything for the acquisition. What’s more, White said once that subscriber base is established, PointsBet has the opportunity to make money from the newsletter with advertising, which will be the next stage of this partnership.  

PointsBet still uses affiliate marketing in its overall growth strategy. But from a content perspective, Roecklein said he is solely focused on organic growth that doesn’t use a CPA or revenue share model in the content deals he oversees. 

So far, Roecklein said his team is seeing a positive correlation between growing the audience for PointsBet content and the number of deposits into the sportsbook’s betting platform. However, “one of the challenges for attribution of organic content is that it’s not direct linking to [the sportsbook],” he said, adding that conversion rates are not clearly measurable. 

FanDuel’s chief content officer Mike Raffensperger said that while a lot of the other sports betting companies in the industry have pulled back CPA spending, FanDuel has leaned into this area, given it had 51% of the market share in Q2 of this year. He added that this enables the sportsbook to get away with lower CPAs than its competitors. This lets the company to earn back what it spent on acquiring the customer within 12-18 months, versus the industry average of 24 months, according to Patrick Keane, CEO of sports betting publication Action Network. 

Despite that, FanDuel TV is a new initiative Raffensperger’s team is launching, which will feature programming on sports betting odds, in addition to airing live sports, with the goal of growing an organic viewership.

FanDuel still uses a CPA-based payment model or traditional media buying model (such as a flat fee) in the majority of its publisher-focused content deals though, Raffensperger added. For example, one of the ongoing, flat fee-based deals is with The Gist, a sports newsletter aimed at female and underrepresented audiences. 

CPAs are not always in the publishers’ best interest 

From the publisher perspective, CPAs or revenue shares might sound like the best deal, given sportsbooks have historically paid top dollar for their audiences to convert to bettors. But this model is risky when it comes to audiences that aren’t typically considered to have a high propensity for betting. 

This year is the second in which The Gist has worked with FanDuel in a large-scale content sponsorship, which The Gist’s co-founder Jacie deHoop said has been the publisher’s largest sponsorship to date from a revenue perspective. Though she declined to provide hard revenue figures, she said the terms of the deal are initially based on a flat-fee model, with the opportunity to build in a CPA or revenue share model at a later date depending on the campaign’s performance. 

Year one was focused on FanDuel’s fantasy sports business. The Gist created a branded weekly fantasy football contest for its readers, who paid a $2 entry fee and were eligible to win $500 each week or a grand prize worth $5,000.

However, this year’s deal with FanDuel is primarily focused on sports betting. DeHoop said this was a natural progression, as about 30% of the almost 4,000 readers who participated in the contest ended up registering for a FanDuel account or depositing money to bet on the sportsbook’s platform following the fantasy contest. 

“We see fantasy as a really interesting first step in somebody’s journey to sports betting,” deHoop said. However, “our audience [is] still very early in their sports betting journey and still getting their feet wet and understanding the space and if there’s really interest there.” Because of this, there is a lot of risk for The Gist in working off of a CPA-based or revenue share-based model. 

If The Gist’s audience isn’t interested or ready to start betting, a CPA or revenue-share model will not have the payouts needed to justify how much time and effort goes into creating the custom content for the FanDuel campaign. 

In theory, a CPA-based partnership using the number of first-time depositors driven by last year’s FanDuel partnership (which included about 500, according to deHoop) would only yield about $150,000, based on an average rate of $300 per new acquisition. It’s unclear how that figure compares to the amount that FanDuel is paying The Gist.

While this is not a miniscule amount, and there is a possibility that a sports betting-focused campaign will increase that 500 first-time depositor figure, the flat-fee promise of a media campaign spanning the entire NFL football season, as well as the start of the NBA Playoffs and the Women’s World Cup, was a lot more appealing. 

That’s not to say, however, that if the audience is really embracing sports betting in the next few weeks that deHoop’s team won’t negotiate for a CPA or revenue share add-on, she said.

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