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Data Security Legislation is inevitable

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A law(s) for data breaching is around the corner. And the time is right, what with the scads of data breaches involving major retailers lately. Details of customers’ addresses, phone numbers, credit cards and other sensitive information have ended up in the hands of hackers. We’re talking many tens of millions of affected consumers.

3DDespite this mushrooming problem, no consensus has yet arrived regarding just what role the government should assume to protect peoples’ data. But a common thread to the many ideas is customer notification once a data breach occurs. Though 46 states do have notification laws, retailers gripe that this makes them spend precious time complying with this instead of on fighting data infiltrations and repairing the fallout.

“We’ve long said that action is needed and hopefully we can see passage of data breach notification legislation this year,” says Brian Dodge, a senior vice president at the Retail Industry Leaders Association.

Recently the Data Security Act was introduced. It would require companies and banks to have privacy protections and investigate breaches, plus alert customers about big risks of theft or fraud. Banks have complained about the costs of responding to data breaches and have insisted that retailers take more action to the fallout. The DSA could take some of this burden off banks.

“We think it’s important that essentially everybody up their game,” says Kenneth Clayton, an executive VP and chief counsel at the American Bankers Association. This needs to occur whether through law or industry action, Clayton adds.

The FTC may even get involved. But how much should the government get involved, though? “The idea that the government would do a better job than private industry is a horrible idea,” says John Kindervag, a principal analyst at Forrester Research, an advisory firm.

However, a 2014 priority for the FTC is to protect sensitive health and financial information. “The FTC has long been concerned that this type of sensitive data warrants special protections,” says Jessica Rich, head of the FTC’s consumer protection bureau. She adds that the FTC strongly supports the possibility of new laws that would protect consumers.

Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.

Protecting Your Business’s Data From Organized Crime

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Organized crime rings are using brains, not brawn, to target small businesses and steal critical data. Protect your business by putting these 11 security measures into place.

1DOrganized crime has always been known to be all about muscle … but even the bad guys have evolved. Seems organized crime syndicates have discovered that more money can be made in less time with less hassle simply by employing brains over brawn.

As technology and technology skills have evolved, it’s become painfully easy to employ hackers to break into small businesses’ networks and seek out sensitive data and personal information.

Meet the members of your friendly neighborhood crime ring:

Programmers: skilled technicians who write and code viruses that target a business’s network PCs.

Carders: specialists in distributing and selling stolen card data and sometimes transferring data onto blank “white cards” then embossing them with foil in order to create exact clones.

Hackers: black-hat intruders who look for and exploit vulnerabilities in networks.

Social engineers: scammers who may work with psychologists who dream up the different scams and then con victims via phone, phishing or in person.

Rogue systems providers: unethical businesses that provide servers for criminals.

Money mules: often drug addicts or naïve Americans who buy items at retailers with stolen credit cards. Some mules ship products, and others launder money. Mules may be from a foreign crime syndicate’s nation and travel to the U.S. to gain employment within an organization and open bank accounts to store money until transfer.

Bosses: in charge of the entire operation. Bosses delegate, hire talent and make all the money.

Why Target Small Businesses?

Organized criminal hackers all over the world use sophisticated hacking tools to penetrate databases that house a small business’s client data. In general, they’re seeking:

  • Social Security numbers
  • Credit card numbers
  • Bank account information
  • Home and business addresses
  • Birth dates
  • Email addresses

Why do they do it? Simple—their primary motivation is to get paid. They accomplish this by opening new lines of credit or taking over existing accounts. Transactions include making charges to credit cards, initiating electronic fund transfers or using email addresses for large phishing or spear phishing campaigns.

How Hackers Hack

Hackers are the bad guys who use penetration-testing tools—both legal and illegal—that are available commercially or only available on the black market. Their tools come in different forms of hardware and software that seek out vulnerabilities within a small business’s network.

Vulnerabilities may be physical, as in facilities vulnerable to intrusion, or may be people who are vulnerable to social engineering. Virtual vulnerabilities exist in a business’s Internet connection (whether wired or wireless), an outdated browser or an outdated operating system—any of which may be vulnerable if they don’t have updated security patches. Vulnerabilities can also be exposed via social engineering: A criminal simply gets on the phone, sends an email or shows up in person and cons a target using any of a variety of methods.

Protecting Your Data

There are plenty of ways to get taken. But there are also plenty of ways not to. The fundamentals of protecting your business’s data include:

  • Maintaining updated operating systems, including critical security patches
  • Installing and running antivirus, antispyware and antiphising software and a firewall
  • Keeping browsers updated with the latest version
  • Updating all system software, including Java and Adobe
  • Locking down wireless Internet with encryption
  • Setting up administrative rights and restricting software, such as peer-to-peer file sharing, from being installed without rights
  • Utilizing filtering that controls who has access to what kind of data
  • Utilizing Internet filters to block access to restricted sites that may allow employees or hackers to upload data to Cloud-based storage
  • Possible disabling or removing USB ports to prevent the downloading of malicious data
  • Incorporating strict password policies
  • Encrypting files, folders and entire drives

These 11 steps are a good start. However, standard security measures are never enough. Depending on the size, scope, type of data requiring protection, compliance and regulatory environment, possible insider threats, and what “bring your own device” policies may be in place, risks and threats must be defined and prioritized. This often requires consulting a professional.

There are two considerations small businesses must take into account that go beyond a low-budget, “do it yourself” mentality:

1. Data loss prevention and risk assessment software. This type of software monitors an entire network’s activities and behaviors to seek out events that might lead to a breach and then stop them before data loss.

2. Penetration testers. These are white-hat hackers who use similar tools as black hats to seek out vulnerabilities and exploit those vulnerabilities as far as they’re allowed by the client. They might use automated tools to seek technology vulnerabilities, or employ virtual or physical social engineering. For instance, some penetration testers will test the physical security of a building during or after hours. Penetration testing involves real-world attacks that have been proven to work elsewhere, along with seeking out flaws in a business’s networks.

The worst thing any small business can do is nothing. Failure to test your networks and put layers of security in place will inevitably result in a breach. Forewarned is forearmed.

Robert Siciliano CEO of IDTheftSecurity.com, personal security and identity theft expert and speaker is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen. See him knock’em dead in this identity theft prevention video.

Data Breach Notification Bill goes to the House

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H.B. 224, a newly introduced data breach notification bill for New Mexico, would mandate that organizations notify breached individuals within 10 days of breach discovery (unencrypted credit card data); and within 10 business days notifying the state attorney general if more than 50 NM residents are affected.

4DThe bill allows for a shorter notification deadline and for card carriers to sue for recovery costs linked to the breach; and customers can sue for statutory damages.

Companies operating in NM will also have additional data security and data disposal requirements, due to the bill. Enacting H.B. 224 would make New Mexico join 46 states who have data breach alert laws.

Payment Card Breach

  • Within two business days: Time allowed for card issuers facing a breach to notify all the merchants “to which the credit card number or debit card number was transmitted,” according to H.B. 224.
  • H.B. 224 would also set a risk of harm threshold regarding when an alert is required for card breaches.
  • If the magnetic strip data or other information is revealed, yielding harm or risk of harm to the cardholder and compromise of access device data, the bill would require notification. The card issuer would not need to give approval or direction.
  • Card issuers can sue for recovery of administrative costs if a card reader is breached or if there’s a problem with strip data.

Data Security and Disposal

  • The bill would make companies “implement and maintain reasonable” security measures to ensure protection of personal identifying information from illegitimate access or other fraudulent action.
  • Businesses would also have to include these data security standards in contracts involving “non-affiliated third parties” that they share personal information with.
  • Personal data, however which way it’s contained, be disposed of such that personal identifying information would be impossible to read or decipher.

Enforcement

  • The bill would authorize the state attorney general to seek injunctive relief and recovery of damages via court.
  • Failure of a company to notify of the breach could result in harsh fines, if the bill is enacted.
  • Customers could sue for damages of $100 to $300, depending on circumstances.

Being accountable:

It may be just a matter of time before the Federal government steps in and decides PCI Standards might not fix client data protection problems. Businesses who see the writing on the wall are being proactive and making smarter investments in their customers security.

Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.

How Data Breaches happen and how to respond

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Here’s four chief ways how data breaches happen:11D

  • Illegal access to information or systems. Personal Identifying Information (PII) data can be illegally accessed via technology such as computer hacking or infecting computers with viruses, Trojans or worms—leading to stolen data or malfunctioning systems.
  • An inside job. Employees (past or present) can commit data breaches. Also, an innocent employee is tricked by social engineering into revealing confidential information or giving out access to that information.
  • Judgment lapse. An employee may leave data unprotected—not on purpose, but due to an oversight, making it easy prey for villains.
  • Device loss. When a device that contains valuable data is lost or misplaced, a thief could get ahold of it—and then all hell can break loose.


Prepare

Don’t wait for a breach to figure out a plan of action. Have the plan in place in anticipation of an attack. The plan should be built around written emergency contacts, clear guidelines to which law enforcement outfits should be contacted for resolution, and a notification timeframe.

Put in place vendor contracts that have a call center unless the company’s staff can handle a big data breach. The contracts should also include a mail-house for letters of notification, and previously agreed rates pertaining to consumer fraud protection should the business need to notify clients or customers.

Fighting back

When a breach occurs, consult with legal counsel, always. In addition, there are certain actions you must take. First, find out how the breach occurred, then contain it. Get a solution started to prevent it from striking again. Alert relevant employees.

Also notify external entities in a timely fashion such as law enforcement, a forensics investigator, consumers, FTC and any affected vendors and suppliers.

Additional Points

  • A strong prevention strategy for data breaching depends upon top management, to ensure that the company’s budget covers fiscal and personnel resources.
  • From the get-go, the company’s most high-up individuals should be included in devising any plans to protect against and mitigate data breaches.
  • Getting upper management involved is critical for establishing a solid groundwork for security.
  • Keeping up to date and re-evaluations should be carried out on an ongoing basis to always stay on top of the latest trends in data breach and security technologies.
  • Also ongoing should be training and practice of the company’s response plan to data breaching.

Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.

Tightening up Security is Everyone’s Responsibility

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Most information technology (IT) experts are very much unnerved by cyber criminals, says the biggest study involving surveys of IT professionals in mid-sized businesses.3D

  • 87% send data to cloud accounts or personal e-mail.
  • 58% have sent data to the wrong individual.
  • Over 50% have confessed to taking company data with them upon leaving a post.
  • 60% rated their company a “C” or worse for preparation to fight a cyber threat.

Here is an executive summary and a full report of the survey’s results.

A second study as well revealed high anxiety among mid-size business IT professionals.

  • Over 50% of those surveyed expressed serious concern over employees bringing malware into an organization: 56% for personal webmail and 58% for web browsing.
  • 74% noted that their organization’s networks had been infiltrated by malware that was brought in by web surfing; and 64 percent via e-mail—all in the past 12 months.

The above study is supported by this study.

  • 60% of respondents believed that the greatest risk was employee carelessness.
  • 44% cited low priority given to security issues in the form of junior IT managers being given responsibility for security decisions.

The first (biggest) study above showed that about 50% of C-level management actually admitted that it was their responsibility to take the helm of improving security.

And about half of lower level employees believed that IT security staff should take the responsibility—and that they themselves, along with higher management, should be exempt.

The survey size in these studies was rather small. How a question is worded can also influence the appearance of findings. Nevertheless, a common thread seems to have surfaced: universal concern, and universal passing the buck. It’s kind of like littering the workplace but then thinking, “Oh, no problem, the custodian will mop it up.”

  • People are failing to appreciate the risk of leaving personal data on work systems.
  • They aren’t getting the memo that bringing sensitive data home to personal devices is risky.
  • Web browsing, social sharing and e-mail activities aren’t being done judiciously enough—giving rise to phishing-based invasions.

IT professionals are only as good as their weakest link: the rest of the employees who refuse to play a role in company security will bring down the ship.

Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.

Data Insecurity causes Customer Headaches

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Imagine not being able to use cash for even the smallest purchases because your bank—still shaking from news of the recent retail data breach that affected at least 110 million accounts—has decided to block all customer transactions. This actually happened.

12DIn many recent interviews I have been asked the question numerous times “Is it time to go back to cash?” The answer is NO, but consumers should definitely have cash on hand. Not having cash will severely limit consumers in the event of a massive power outage and we are seeing that massive data breaches have big time negative effects too.

Large banks, in response to that 110-million-account breach, may be putting limits on card usage, and can have cards replaced relatively quickly. But smaller financial institutions do not have the means to replace cards quickly. They also lack budgets to cover potential breach incidents.

As a result, a customer may learn that their card is blocked from transactions that don’t involve a PIN. Many consumers got stung by this during the holidays. One customer reported he had to contact his bank first to confirm any online purchases. His card then gets unblocked for an hour, but then blocked again. Supposedly this ban has since been lifted.

In a litigious society, don’t bet against the possibility of consumers suing retailers for these kinds of consequences; it’s already begun happening. One woman filed a class-action lawsuit on Dec. 23, 2013, citing a giant retailer’s alleged failure to secure its data, leading to the massive breach.

Tips for Businesses

  • Always update. Your software should always be up to date. Thieves can easily overcome old software and invade your sensitive data.
  • Control access. Who has access to your servers? Do you know? Make sure that only trusted users/administrators have access.
  • App testing. If a custom application code is running on your servers, it should be tested for the top 10 security issues regarding web applications.
  • Be alert. Keep a tight rein on your server, and your cloud provider’s bill. A traffic surge that you don’t expect can signal a spam attack.

Don’t pass the buck. Business owners, and consumers as well, have been playing key roles in cyber crimes—though not with malicious intentions, but rather, being uninformed as well as not wanting to step up to the plate.

Stepping up to the plate is the only option retailers have in order to survive. The time to show your customers you are serious about preventing credit card fraud and the lengths you’ll go to protect their identities is right now.

Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.

Data Breaches hurt Businesses’ Brand

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That very newsworthy data breach that’s still in the news struck 110 million customers, not the more commonly reported 40 million; that’s one-third of the U.S. population.

4HThere was also another, but less publicized, breach of huge proportions that occurred to a major retailer in mid-December of 2013. And some reports say another 6 or more retailers may be affected in a similar breach.

The major-news retailer that got kicked in the butt by cyber criminals has run full page newspaper ads apologizing for not effectively protecting customers’ data, and hoping to win back consumers’ trust and loyalty. Kind of sounds like the Tylenol poisoning scare in the 1980s when the drug maker went on a massive ad campaign to win back consumers’ trust.

But with each new revelation of more data being compromised and growing concern of additional fraud, has come more media and customer scrutiny resulting in compounded brand damage.

Trust and Security

Feeling secure and trusting the brand is a major force behind consumer loyalty. Prior to that massive December breach, the retailer was right up there with its huge competitors as far as meeting reasonable consumer expectations.

That data breach has severely tainted the retailer’s customers’ trust. The 2014 Customer Loyalty Engagement Index accesses the retailer’s brand engagement level to be about 6 percent.

Sales have plummeted since the breach hit the news. Recovery is expected to be slow and arduous, and social media is fueling the sensationalism. It can take years to build up trust, but just a few hours of news “going viral” to crush it.

All is not lost.

The adage “What doesn’t kill us makes us stronger” plays a vital role when companies embrace their failures, learn from them and do right by their customers. The next few months will have a serious impact on the future of the breached companies and every retailer who accepts credit cards for payment.

Now is the time to beat the drum of customer security and bring awareness to how your company protects customer data. Move up http://i.forbesimg.com t Move down

Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.

Been Breached? A Response Plan

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Should victims of a data breach be notified? This situation can be confusing due to various state laws. Certain issues must be considered, including differences among state laws. Differences include what exactly defines personally identifiable information; which agency (e.g., law enforcement, credit reporting) should be alerted; when victims should be notified; and what the notification letter should say.

4DLegal counsel can tell you what level of notification you’re entitled to. Not every data breach case requires that consumers or businesses be alerted. But not alerting has its own set of negative consequences.

When an incident does require notification, the information that follows must be considered: (these are general guidelines – review any and all steps with your attorney)

  • Treat all victims equally; all get notified, even if this means out of state. Not doing so can yield legal consequences or the media might pounce.
  • Though there aren’t really any notification laws regarding overseas victims, they too should be notified.

Notification

The sooner victims are alerted, the better. Under what circumstances, though, should victims be notified? The nature of the breach should be considered, along with type of information stolen and whether or not it may be misused, and the possible fallout of this misuse.

Damage from misuse can be significant, such as with stolen SSNs and names.

When in doubt, consult with legal counsel. Don’t be surprised if you’re informed that breached consumers must be notified; most states require this. And within 30 days. Some states mandate that the Attorney General’s office also be notified.

FTC Recommendations for Notification

  • Inform law enforcement when notification takes place so they don’t cross lines with it.
  • Also find out from them precisely what information the consumer notification should contain.
  • Select someone from your organization to manage release of information.
  • This contact individual should be given updated information concerning the breach, plus your official response, as well as guidelines for how victims should respond.
  • To aid victims’ communication options, consider providing a toll-free number, posting a website or mailing letters.
  • Explain clearly to victims just what you know of the breach. How did it happen? What information was stolen or compromised? How might the thieves misuse it? What actions have the organization taken for mitigation? What reactions are appropriate?
  • Make sure victims know how to reach the contact person.
  • Make sure the law enforcement official who’s working your case has contact information for victims to use.The officer should also know that you’re sharing this contact information.
  • Victims should ask for a copy of the police report, then make copies to give to credit card companies that have honored unauthorized charges.

Robert Siciliano is an Identity Theft Expert to AllClear ID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.

Corporate BYOD puts Client Data at risk

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When employees improperly use mobiles, they put their companies at risk for data breaches. This includes leaving lots of sensitive data on the devices—which can pave the way to leakage of data, plus other issues.

7WMobile device use in workplaces is increasing—and so is its associated security risks. Current security measures are lagging behind the increased rate of mobile device use in the corporate realm.

One study not only showed that a lot of company information was left on handsets, but personal information as well was left on, putting employees at risk for personal compromises.

This small study demonstrates a clear need for improved guidelines and policies governing smartphone use and security of the devices. This becomes even more relevant as businesses turn more to cloud storage for data.

Non-approved software-as-a-service (SaaS) apps, used by employees, is widespread, according to a McAfee study. These apps are not approved by the company’s IT department. Employees can easily bypass the IT department by using the cloud. The study showed:

  • Over 80 percent of survey participants reported using unauthorized SaaS apps.
  • About 35 percent of SaaS apps used on the job are not approved.
  • About 15 percent of users have had a security problem using SaaS.

Employees may not realize that their chosen SaaS apps are poorly safeguarded. Such employees aren’t malicious; they’re just trying to be more efficient. Businesses need to find the right balance of protecting themselves yet allowing employees to use apps for increased productivity.

An ideal situation would be to monitor SaaS apps and apply policies that do not inhibit employees’ ability to be productive.

A recent Forbes article got my attention and the authors solutions make good business sense.

Six Solutions

1) XenMobile. This allows IT to secure and manage smartphones, data and apps, and establish policies based on smartphone ownership, location or status. Users can then more easily access the web, e-mail, corporate apps and documents with a single click on a mobile.

2) Airwatch. This mobile device system provides management of apps, content and e-mail, to oppose inadvertent mismanagement of smartphones by employees (e.g., storing documents in vulnerable locations).

Just enter username and password; Airwatch will wirelessly and automatically configure all the settings, apps, security policies and more based on the worker’s role in the company.

3) Mobile Iron. This system manages and secures apps, devices and content, ideal for businesses that support the BYOD program. Personal content can be separated from corporate content, protecting the employee’s private data.

4) Good Dynamics secure mobility platform. This is a BYOD program that keeps employees productive while zeroing in on security. Personal data is partitioned off from business data to protect programs like e-mail.

5) Samsung Knox. This system is for Android devices, managing with a multi-tiered security approach. One’s network will be protected from malware, hacking, viruses and non-approved access.

6) Protect your BYOD on wireless networks. Use VPN if you’re on a portable wireless device. Hotspot Shield VPN is free, though its paid version is more e expanded and faster. First launch Hotspot before you use your PC laptop, iPad or iPhone to connect to free public Wi-Fi services like at the airport or at a coffee shop or hotel.

Your entire web surfing session will then be protected. All of your connections will be secured. This will eliminate some of the aggravation for your company’s IT department.

Robert Siciliano is an Identity Theft Expert to Hotspot Shield VPN. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him discussing internet and wireless security on Good Morning America. Disclosures.

Devising a Data Security Strategy

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Whether you are an individual who games, a work-at-home employee, a family of four that shops online, a road warrior or even a small business, chances are you have data to protect—and so this all pertains to you.

5DFundamentals:

Antivirus isn’t enough: A free antivirus package is good, but it might not update automatically—and you need your antivirus to be today’s version. Spend a couple bucks and get your antiphishing, antispyware and firewall protection.

Updated browsers: An old, outdated browser is a nightmare that is often riddled with holes for criminals to slither a bug through. Install the latest update ASAP, automatically or both.

Updated operating systems: Set your OS to automatically update, as manual updates are often forgotten and missed.

Disk encryption: Your device may come equipped with the ability to encrypt individual files, folders or the entire disk. There are many free third-party encryption programs that are excellent.

Backing up: You should have at least two local backups of all your data in case a device fails. I use external drives and GoodSync to keep it all backed up every hour. Also, invest in cloud-based storage that has encryption as well—all for under $100 annually.

Password management: It’s not OK to have one password for 30 accounts. You need 30 different passwords, and this can only be accomplished with a password manager.

Wireless WiFi protection: Having open WiFi so your neighbor can piggyback on your connection is a bad idea. Use WPA2 encryptions that are built into the router. Whenever using public free WiFi, use a virtual private network software such as Hotspot Shield VPN to encrypt all your data.

Mobile device security: Mobiles are small computers that store our data or have access to our cloud-based accounts. Mobiles need to be password protected and have antivirus protection, just like PCs do. Keep in mind that WiFi on a mobile is no different than on a laptop, so use a VPN on your mobile too.

Robert Siciliano is an Identity Theft Expert to Hotspot Shield VPN. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him discussing internet and wireless security on Good Morning America. Disclosures. For Roberts FREE ebook text- SECURE Your@emailaddress -to 411247.