Data Breach Can Be Prepared For And Stopped When it Comes Your Business

Last month, Associated Press’ Twitter account fell victim a data breach after hackers sent a fake tweet from their account referencing an explosion at the White House.

The tweet caused the Dow Jones Industrial Average to plunge more than 100 points within seconds.

This latest incident highlights not only how disruptive a  data breach can be, but also how easily they can be orchestrated. The attack has been linked to an ongoing spear phishing scheme that targets Twitter users’ corporate email accounts.

Despite these high profile attacks, a recent report by the Ponemon Institute and Experian Data Breach Resolution suggests that many companies still have significant gaps in their data security procedures.

The study, which surveyed 471 compliance, privacy, and IT personnel at U.S. companies, identified the following practices as creating the potential for a significant data breach:

• BYOD is permitted without security testing. Seventy-eight percent say their organizations allow employees to bring their own mobile devices such as laptops, tablets and smart phones (BYOD) to the workplace. However, 61 percent say their organization does not require or they are unsure that mobile devices should be tested for security prior to connecting to networks or enterprise systems.
• Lack of effective access and authentication practices could enable improper access to personal information. Less than half (44 percent) of respondents say that their organization is effective in authenticating and making sure that only the appropriate employees and contractors have access to its information systems. Moreover, only 43 percent say their organization promptly changes access rights of employees and contractors when they change jobs or are terminated.
• Encryption is not widely deployed. Less than one-third of respondents say sensitive or confidential personal and business information stored on computers, servers and other storage devices generally encrypted.
• Monitoring information systems for unusual or anomalous traffic does not regularly occur. Only one-third of respondents say their organizations are taking such preventative measures as monitoring for potential risks to the network and enterprise system.

As we have previously highlighted on this Business Law Blog and on our companion blog eWhite House Watch, effective data security policies and procedures are essential for businesses of all sizes. Failing to have the proper protections in place will not only hurt your company’s reputation, but also may impact your bottom line.

If you have any questions about this study or would like assistance with your data theft prevention efforts, please contact me, Fernando Pinguelo,  or the Scarinci Hollenbeck attorney with whom you work.