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Naughty ' or ''=' still works! ;)

Yes nothing new about this...I agree. This is one of the primary tools used by pen testers for detecting SQL injection flaws. So it's quite natural for any developer to have knowledge how to thwart this kind of attack from happening in their application, I mean ,very basic thing a developer can do in their application,the first line of defence against SQL injection attacks it is.
And they do, I have hardly come around this sort of negligence in any application I have audited.

But can you believe that one of the major website of an Airline is susceptible to this(sorry...I can't disclose)?? Even the site is very much live, used by customers, for doing transactions.
I was taken aback by this incident. Just supplied the query and voila! I had broken their authentication and clearly seeing the account of first customer. That's not single case..this happened at two different login sections ,one for customer account and another for Agent account.
Really surprising, this can't be treated as mistake..this is sheer negligence on the part of developers, on the part of Testers or on the part of authorities..I can't decide. You can understand the cases where a site's authentication mechanism is compromised by advanced methodologies, but this case is beyond any body's comprehension.
Even not this only...much of XSS are also there!
And even this is persistent flaw, every time you inject, you are through, with a very friendly advice popping up telling the logger to "USE STRONG PASSWORDS". :D

I think following might be reasons that a website security fails, as per Jeremiah's post:

1. No one at the organization understands or is responsible for maintaining the code.
2. Features are prioritized ahead of security fixes.
3. Affected code is owned by an unresponsive third-party vendor.
4. Website will be decommissioned replaced "soon".
5. Risk of exploitation is accepted.
6. Solution conflicts with business use case.
7. Compliance does not require it.
8.No one at the organization knows about, understands, or respects the issue.

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