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Brian Pennington

A blog about Cyber Security & Compliance

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data breaches

Your Biggest Weakness Is Already on Your Payroll

Imperva IG

An Imperva Infographic

Are British Businesses over confident about the threat of data breaches?

Ilex International have launched their Breach Confidence Index. The Index is a benchmark survey created to monitor the level of confidence that British businesses have when it comes to security breaches. The Index shows high confidence levels

  • 24% of IT decision makers surveyed very confident
  • 59% fairly confident that their business is protected against a data security breach

The Breach Confidence Index raises major concerns for British businesses. Businesses are not currently required to report security breaches and in many cases, may not even know that they have experienced one. The survey found that 49% said their business has not experienced a security breach. In comparison to actual statistics shared at the 2015 Cyber Symposium, there is a major gap between the perception and reality of security breaches among businesses.

According to the survey the most common weaknesses resulting in a Data Breach were
22% MALWARE VULNERABILITIES
21% EMAIL SECURITY
15% EMPLOYEE EDUCATION
12% CLOUD APPLICATIONS
12% INSIDER THREATS
8% ACCESS CONTROL
8% BYOD OR MOBILE ACCESS
6% NON-COMPLIANCE TO CURRENT REGULATIONS

Weaknesses relating to identity and access management considerably increase as organisations expand their workforce. Some of the most common issues highlighted by large businesses include:

  • 44% insider threats
  • 42% employee education
  • 26% access control
  • 24% BYOD or mobile access

All figures in the Ilex International Breach Confidence Index, unless otherwise stated, are from YouGov Plc. Total sample size was 530 IT Decision Makers. Fieldwork was undertaken between 6th – 12th August 2015. The survey was carried out online.

Data Breaches: Are You Prepared?

Data privacy and security continues to be a growing concern for many organizations. With cyber attacks increasing each year, businesses must be mindful of how data breaches occur in order to prevent the exposure of confidential information. Recognizing vulnerabilities in data security efforts can help minimize the effects a cyber attack may have on an organization.

Thomson Reuters data-breaches

Original produced here by Thomson Reuters.

UK Businesses unprepared for changes to the Data Protection Act

Crown Records Management survey of IT decision makers reveals companies are woefully unprepared for EU General Data Protection Regulation.

European politicians met on the 24th June 2015 in a bid to ratify huge changes in data protection regulation, but a survey has revealed UK businesses are woefully unprepared.

The EU General Data Protection Regulation aims to unify data protection across Europe with a single law and will be fine-tuned in Brussels at a ‘trilogue’ meeting of the EU Commission, European Parliament and the Council of the EU.

Once passed, it will bring with it huge fines (up to 100m Euros or 2% of global turnover) for companies that breach the regulation – as well as a raft of new rules about collecting, editing and processing the personal data of European citizens. Many companies will also be compelled to employ at Data Protection Officer for the first time.

Experts predict it will affect every single company that operates from within the EU, does business with companies inside the EU, stores its data in EU member countries or handles the personal data of European citizens.

A Crown Records Management Censuswide survey of IT decision makers at UK companies with more than 200 employees revealed businesses here are painfully unprepared – and one in five hasn’t even heard of the Regulation.

Results include:

  • 19.6% are totally unware of the changes
  • 29.4% of decision makers aged 55+ know nothing about the challenges ahead
  • 25.3% will wait for the final details of the Regulation before taking any action at all
  • 52% who know about the Regulation still aren’t currently reviewing policies
  • 42.5% of decision makers in companies with a turnover of more than £500m are ‘not really concerned’ or ‘not concerned at all’ about the impact of the new structure.
  • 63% have not yet appointed a Data Protection Officer, which will soon become compulsory for many companies
  • 59% have no plans in place to train staff despite the changes looming

Reproduced from Crown Records Management.

Read my 2012 review of the Proposed European Data Protection Act here 

Who breached the Data Protection Act in 2014 (UK)? Find the complete list here.

Who breached the Data Protection Act in 2013(UK)? Find the complete list here.

Who breached the Data Protection Act in 2012(UK)? Find the complete list here.

5 steps to respond to a security breach

Is your organisation equipped to deal with potential financial and reputational damage following an attack? 

Has your organisation established an incident management plan that covers data breaches? Recent evidence shows that organisations are ill-equipped to deal with an attack.

Australian bulk deals website, Catch of the Day, suffered a security breach in 2011, with passwords and other user information stolen from the company’s databases. It took until 2014 to notify customers, suggesting there was no response plan in place.

The backlash was very severe for global retail giant, Target, which fell victim to the second largest credit card heist in history. Many customers were outraged about the retailer’s inability to provide information after the breach, and its failure to assure customers that the issue was resolved.

Consequences included settlement payouts of up to $10 million and the resignations of its CIO and CEO.

Organisations should have established and tested incident management plans to respond to data security breaches sooner rather than later. A solid response plan and adherence to these steps can spare much unnecessary business and associated reputational harm.

Here’s a five step plan to ensure you give your organisation the best chance of minimising financial and reputational damage following an attack. 

Step 1: Don’t panic, assemble a taskforce

Clear thinking and swift action is required to mitigate the damage. There is no time for blame-shifting. You need a clear, pre-determined response protocol in place to help people focus in what can be a high pressure situation and your incident management plan should follow this protocol.

Having the right team on the job is critical. Bear these factors in mind when assembling your team: Appoint one leader who will have overall responsibility for responding to the breach. Obvious choices are your CIO or chief risk officer. This leader should have a direct reporting line into top level management so decisions can be made quickly.

Include representatives from all relevant areas, including IT, to trace and deal with any technical flaws that led to the breach; and corporate affairs, in case liaison with authorities is required, to manage media and customer communications.

Don’t forget privacy (you do have a chief privacy officer, don’t you?) and legal, to deal with regulators and advise on potential exposure to liability).

If you anticipate that litigation could result from the breach, then it may be appropriate for the detailed internal investigation of the breach to be managed by the legal team. If your organisation doesn’t have these capabilities, seek assistance from third parties at an early stage.

Step 2: Containment

The taskforce should first identify the cause of the breach and ensure that it is contained. Steps may include:

  • Installing patches to resolve viruses and technology flaws. The ‘Heartbleed’ security bug identified in April 2014 at one time compromised 17 per cent of internet servers. Although a security patch was made available almost immediately once it was discovered, some administrators were slow to react, leaving servers exposed for longer than necessary.
  • Resetting passwords for user accounts that may have been compromised and advising users to change other accounts on which they use the same password.
  • Disabling network access for computers known to be infected by viruses or other malware (so they can be quarantined) and blocking the accounts of users that may have been involved in wrongdoing.
  • Taking steps to recall or delete information such as recalling emails, asking unintended recipients to destroy copies or disabling links that have been mistakenly posted. Take care to ensure that steps taken to contain the breach don’t inadvertently compromise the integrity of any investigation.

Step 3: Assess the extent and severity of the breach

The results will dictate the subsequent steps of your response. A thorough assessment involves:

  • Identifying who and what has been affected. If it’s not possible to tell exactly what data has been compromised, it may be wise to take a conservative approach to estimation.
  • Assessing how the data could be used against the victims. If the data contains information that could be used for identity theft or other criminal activity (such as names, dates of birth and credit card numbers) or that could be sensitive (such as medical records), the breach should be treated as more severe. If the data has been encrypted or anonymised, there is a lower risk of harm.
  • Considering the context of the breach. If there has been a deliberate hacking, rather than an inadvertent breach of security, then the consequences for the relevant individuals or organisations could be much more significant. This should inform how you respond to the breach.

Step 4: Notification

For serious data security breaches, proactive notification is generally the right strategy. A mandatory notification scheme has been proposed in Australia, with the government promising implementation by the end of 2015.

In any case, there are good reasons to consider voluntary notifications, which include:

  • Victims may be able to protect themselves, for example by changing passwords, cancelling credit cards and monitoring bank statements.

E-Bay was roundly criticised in 2014 for not acting quickly enough to notify users affected by a hacking attack, and only doing so by means of a website notice rather than by sending individual messages. Notices should be practical, suggesting steps that recipients can take to protect themselves.

  • The Privacy Commissioner may also be involved, particularly if personal information has been stolen. The Commissioner may take a more lenient approach to organisations that proactively address problems when they arise.
  • Other third parties may also need to be notified. For example, if financial information is compromised, you might notify relevant financial institutions so that they can watch for suspicious transactions.

Step 5: Action to prevent future breaches

Having addressed the immediate threat, prevention is the final step. While customers may understand an isolated failure, they are typically less forgiving of repeated mistakes. Carry out a thorough post-breach audit to determine whether your security practices can be improved.

This could include:

  • Engaging a data security consultant, which will give you a fresh perspective on your existing practices, and help to reassure customers and others that you do business with.
  • Promptly remedying any identified security flaws – changes should be reflected in data security policies and training documents (and if such documents don’t exist, create them.)
  • Rolling out training to relevant personnel to ensure that everyone is up to speed on the latest practices.
  • Reviewing arrangements with service providers to ensure that they are subject to appropriate data security obligations (and, if not already the case, make data security compliance a key criterion applied in the procurement process).

Written by Cheng Lim is a partner at global law firm King & Wood Mallesons. Cheng leads KWM’s Cyber-Resilience initiative and has assisted clients over many years in dealing with privacy, data security and data breaches. Originally produced for CIO Australia.

The majority Of Risk Professionals Without Coverage Are Considering Purchasing Cyber Insurance

RIMS, the risk management society ™ has conducted its first Cyber Survey 2015 to explore strategies implemented by risk professionals including insurance investments, exposures, cyber security ownership, government involvement, as well as identification methods and response procedures.

Responses came in from 284 of RIMS U.S. professional members in various industries, with 58% of respondents coming from organizations that produce more than $1 billion in annual revenue.

RIMS said it conducted the survey, in part, to identify methods and response procedures used by its members. As well, the organization wanted uncover strategies in place addressing areas such as insurance investments, exposures, cyber security in order to uncover strategies used by its members against cyber threats, including insurance investments, exposures, cyber security ownership and government involvement.

RIMS President Rick Roberts said that the new information is intended to give “the global risk management community valuable insight, showing how organizations are trying to stay ahead of this top concern”

Key survey findings:

  • 77% of risk management professionals credit enterprise risk management with helping them spot cyber risks at their companies.
  • The top three first party exposures reported are:
    1. 79% reputational harm
    2. 78% business interruption
    3. 73% data breach response and notification
  • 51% said their companies or organizations purchase standalone cyber insurance policies.
  • 58 percent of those with cyber insurance policies carry under $20 million in cyber coverage, and just under half of those said they pay more than $100,000 in premium.
  • 74% of respondents who said their companies lack cyber coverage are considering getting it within the next 12-24 months.

Most Healthcare Organisations Have Experienced A Data Breach

The Fifth Annual Benchmark Study on Privacy & Security of Healthcare Data reveals that the majority of healthcare organizations represented in this study have experienced multiple security incidents and nearly all have faced a data breach. Despite the universal risk for data breach, the study found that many organizations lack the funds and resources to protect patient data and are unprepared to meet the changing cyber threat environment.

The 2015 study was expanded beyond healthcare organizations to include Business Associates.

Represented in this study are 90 covered entities (hereafter referred to as healthcare organizations) and 88 business associates (hereafter may be referred to as either business associates or BAs). A BA is a person or entity that performs services for a covered entity that involves the use or disclosure of protected health information (PHI), according to the U.S.

Department of Health & Human Services. The inclusion of BAs provides a broader perspective of the healthcare industry as a whole and demonstrates the impact third parties have on the privacy and security of patient data. Respondents were surveyed about their privacy and security practices and experiences with data breaches, as well as their experiences with both electronic and paper security incidents.

Data breaches in healthcare continue to put patient data at risk and are costly. Based on the results of this study, they estimate that data breaches could be costing the industry $6 billion.

  • 90% of healthcare organizations represented in this study had a data breach
  • 40% had more than five data breaches over the past two years

According to the findings of this research, the average cost of a data breach for healthcare organizations is estimated to be more than $2.1 million. No healthcare organization, regardless of size, is immune from data breach. The average cost of a data breach to BAs represented in this research is more than $1 million. Despite this, half of all organizations have little or no confidence in their ability to detect all patient data loss or theft.

For the first time, criminal attacks are the number one cause of data breaches in healthcare. Criminal attacks on healthcare organizations are up 125% compared to five years ago. In fact, 45% of healthcare organizations say the root cause of the data breach was a criminal attack and 12 % say it was due to a malicious insider. In the case of BAs, 39% say a criminal attacker caused the breach and 10% say it was due to a malicious insider.

The percentage of criminal-based security incidents is even higher; for instance, web-borne malware attacks caused security incidents for 78% of healthcare organizations and 82% for BAs. Despite the changing threat environment, however, organizations are not changing their behaviour, only 40% of healthcare organizations and 35% of BAs are concerned about cyber attackers.

Security incidents are part of everyday business. 65% of healthcare organizations and 87% of BAs report their organizations experienced electronic information-based security incidents over the past two years.

  • 54% of healthcare organizations suffered paper-based security incidents
  • 41% of BAs had such an incident

However, many organizations do not have the budget and resources to protect both electronic and paper-based patient information. For instance, 56 % of healthcare organizations and 59% of BAs don’t believe their incident response process has adequate funding and resources. In addition, the majority of both types of organizations fail to perform a risk assessment for security incidents, despite the federal mandate to do so.

Even though medical identity theft nearly doubled in five years, from 1.4 million adult victims to over 2.3 million in 2014, the harms to individuals affected by a breach are not being addressed. Many medical identity theft victims report they have spent an average of $13,500 to restore their credit, reimburse their healthcare provider for fraudulent claims and correct inaccuracies in their health records.

Nearly two-thirds of both healthcare organizations and BAs do not offer any protection services for patients whose information has been breached.

Since 2010, this study has tracked privacy and security trends of patient data at healthcare organizations. Although the annual economic impact of a data breach has remained consistent over the past five years, the most-often reported root cause of a data breach is shifting from lost or stolen computing devices to criminal attacks. At the same time, employee negligence remains a top concern when it comes to exposing patient data. Even though organizations are slowly increasing their budgets and resources to protect healthcare data, they continue to believe not enough investment is being made to meet the changing threat landscape.

Key Findings

In this section, they provide a deeper analysis of the findings. They have organized this report according to the two following topics:

  • Privacy and security of patient data in healthcare organizations and business associates
  • Five-year trends in privacy and security practices in healthcare organizations

To respond quickly to data breaches, organizations need to invest more in technologies.

  • 58 % of healthcare organizations agree that policies and procedures are in place to effectively prevent or quickly detect unauthorized patient data access, loss or theft.
  • 49% agree they have sufficient technologies
  • 33% agree they have sufficient resources to prevent or quickly detect a data breach.
  • 53% of organizations have personnel with the necessary technical expertise to be able to identify and resolve data breaches involving the unauthorized access, loss or theft of patient data.

Background

  • Covered entities are defined in the HIPAA rules as (1) health plans, (2) health care clearinghouses, and (3) health care providers who electronically transmit any health information in connection with transactions for which HHS has adopted standards.
  • A security incident is defined as a violation of an organization’s security or privacy policies involving protected information such as social security numbers or confidential medical information. A data breach is an incident that meets specific legal definitions per applicable breach law(s). Data breaches require notification to the victims and may result in regulatory investigation, corrective actions, and fines.
  • This is based on multiplying $1,067,400 (50% of the average two year cost of a data breach experienced by the 90 healthcare organizations in this research) x 5,686 (the total number of registered US hospitals per the AHA).

Two thirds of British workers willing to breach data protection rules

Despite the risk to their employer of criminal proceedings and heavy fines, two thirds (66%) of UK workers would not report a serious data protection breach if they thought it would get one of their  colleagues into trouble, according to recent research.

The study by telecoms and IT firm Daisy Group, which looked at data security risks, found that 13% UK workers had disabled the password protection features on work laptops, mobiles, or tablet devices because they found them annoying. Of those who did have password protection, 36% said they didn’t change their passwords regularly, and 17% admitted their password was very simple and would be easy to guess.

Data security breaches 

However, if asked by a third party to email a client or supplier’s personal details outside of the company,  56% said they wouldn’t and 19% said they would check with their boss before doing so. Although 7% said that they would send the details without querying the request, as they didn’t think anyone would mind.

When asked if data security was an important issue for the company they worked for, 19% said they had no idea.

Cloud specialist, Graham Harris, explained: When it comes to data security, all too often businesses focus purely on IT processes and forget about the staff that will be using them.

As our research identified, human error is one of, if not the most likely source for data security issues, and fear of reprisal is a powerful force. Businesses must be proactive and educate their staff about what data security processes and policies there are, why they exist, what the staff member’s responsibilities are and reassure them about what to do in the event of a problem

confidential

Estate agents and those working in the property industry were among the most likely to turn a blind eye to colleagues’ data security failings, with 71% saying they wouldn’t report a data security breach that would get a colleague into trouble. Those working in marketing were the most likely to raise the alarm.

Despite the potential risk of commercially-sensitive data theft, business management and professional services workers were the most likely to disable data security features on their mobile devices.

Mobile Device Management 

The research was conducted to assess the demand among UK businesses for ‘mobile device management’. The new cloud-based technology gives organisations more control over smartphones and tablet computers by letting them remotely track and wipe the content of any lost or stolen devices, thereby ensuring the information remains confidential.

According to one statistic, 180,000 computing and communication devices were lost or stolen in the UK last year, but it is likely that the true figure is much higher as not all thefts are reported to the police.

Graham Harris explained: “It is important to ‘common sense’ test any security system. Procedures that are complicated or disrupt the working environment often result in employees finding ways to circumnavigate them or taking matters in their own hands. Similarly, it is important to plan for human error and problems, such as theft or loss of devices that carry important data, so that when they do occur, they can be dealt with quickly and effectively.”

The EU is currently in the process of reforming laws on Data Protection which, among other things, will require organisations to report data protection breaches to the relevant authorities within 24 hours. It is anticipated that the penalties for failure to comply will increase to as much as €100m. The legislation changes are expected to be in force by the end of 2018.

The Evolution of Cyber Risk – and ACE Infographic

Evolution of Cyberrisk 1evolution of cyberrisk 2

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