updated 03:13 pm EDT, Sat May 10, 2014
Data taken from offsite backup, no evidence thus far of account access
URL shortening service Bit.ly posted in its official blog that it believes that account credentials have been compromised by unknown assailants. Despite having no evidence of accounts being accessed without permission, taken in the breach are users' email addresses, salted and hashed passwords, API keys and OAuth tokens.
The company observed an unusually high amount of traffic from its offsite database backup storage, and decided that the best response was to execute its emergency plans. It audited the security history for the hosted source code repository that contains the credentials for access to the offsite database backup storage, and discovered an unauthorized access on an employee's account.
As a result of the intrusion, Bit.ly recommends users change API keys, OAuth tokens, and passwords. Additionally, users are requested to re-link Facebook and Twitter accounts, as the service has disconnected them for all users as a security precaution.
Steps the company has taken include a change in all SSL certificates, GPG encryption of all sensitive credentials, and enforced two-factor authentication company-wide. The company has also updated its iOS application to further mitigate problems related to the data breach.