Posts Tagged Data Breach

Data Breaches Threaten Companies Worldwide

Posted by on Monday, 15 July, 2013

As technology staffs contend with ongoing changes to the data distribution landscape, it is important to keep abreast of data security risks and to understand the significant importance of properly managing customer’s private data.

data breachThe Ponemon Institute recently released its annual data breach report which provides stats on data security issues and trends.  With more than 277 companies involved and 1400 individuals interviewed, this report provides a current and unique perspective of potential security risks associated with even the smallest data breach.

Below are highlights of the report which indicates data breaches remain a difficult challenge.

  • The report identifies three key causes of data breaches worldwide:
    • Malicious Attacks – 37%
    • Negligence – 35%
    • System Errors – 29%
  • The average per capita costs of a data breach increased to $136 per capita over the $130 per capita from the previous year.
  • The US had the highest total per incident cost of $5,403,644.
  • In 2013 the average number of breached records was 23,647
  • Healthcare, Financial and Pharmaceutical industries continue to be the top industries with the highest per capita costs incurred.

Ironically, the report noted that organizations that notified victims too soon following a data breach actually incurred higher costs. This is an indication that an incident management plan should be in place to properly mitigate the data breach event.

It’s clear, based on the data in this report, that companies need to look beyond technology solutions that secure systems and communications.  It is important that the human factors are considered like employee training and creating an incident management plan to provide a full proof data security strategy.

Take a look at the full 2013 Ponemon Institute Data Breach report for more information on the top reasons that data breaches occurred and ways to decrease the risks and costs associated with them.

For information on how your company can build a better strategy to avoid data breaches, download our free white paper “Defending Against Data Breach: Developing The Right Strategy for Data Encryption.”

 

Daniel Cheney

Daniel has been the IT Director at a healthcare company for the last 12 years and a longtime beneficiary of GoAnywhere Director and the IBM i platform. He is also a freelance writer for various technical and social media projects.

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Linoma Posts Another Year of Record Growth

Posted by on Friday, 19 April, 2013

We’ve had lots of reasons to celebrate lately at Linoma Software, and here are just a few.

Sales Are Soaring

GoAnywhere, Crypto Complete, Surveyor 400, RPG ToolboxThanks in no small part to having well designed and executed products and a superior support team, our enthusiastic sales team spent 2012 shattering sales records, and have already topped themselves in the first quarter of 2013.  We’ve been able to help customers from virtually every industry, including healthcare, finance and banking, insurance, manufacturing, education, retail, and government, and as we hear back from them about how GoAnywhere or Crypto Complete or Surveyor or RPG Toolbox has made their lives easier and their data more secure, we can share their stories with others seeking an affordable, enterprise-level solution.

Trade Show Season Is In Full Swing

We’ve already met lots of new people — and reconnected with old friends — at the RPG Summit, RSA Conference, COMMON, and InfoSec in Orlando, and this weekend we’re exhibiting with HANDD Business Solutions, one of our partners in the UK, at InfoSec Europe.  Then, we’re first-time exhibitors at the FOSE government conference in Washington D.C. in May and then we’re back in Europe for the COMMON-Europe conference in June.

We’ve Launched a New Website

If you haven’t visited our new GoAnywhere.com website yet, you should check it out.  Our team worked very hard to redesign not only the look and feel, but also the navigation to make it easier for visitors to find what they need.  We hope you’ll take a look and let us know what you think.

GoAnywhere OpenPGP Studio is Now Available

Last month we published a free desktop tool that can encrypt and decrypt files using OpenPGP encryption.  It’s a great solution for those who need to occasionally encrypt files, and OpenPGP Studio also helps organize and manage keys.  You can download OpenPGP Studio for free here.

We’ve also added some new faces to our team and are working on some pretty cool software enhancements as well as our first mobile app, which should be available very soon.

As always, we welcome your ideas and your feedback, and if you’ve got a great story to share about how one of our products has helped you work more efficiently or kept your data better protected, let us know. We’d love to hear it!

 

 

Susan Baird

Susan is the Marketing Manager at Linoma Software, helping promote our secure file transfer and encryption solutions. Her specialty is content creation and social media marketing, and you can find out more about her by viewing her LinkedIn profile.

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What Can We Learn from the LinkedIn Breach?

Posted by on Thursday, 21 June, 2012

Today is another unfortunate reminder that no matter the size of a company or its industry, a data breach makes headlines.

Not only does it attract negative attention and erode customer confidence, an announcement that your company’s data has or may have been compromised can result in some steep financial penalties.  If fines associated with violating regulations like HIPAA or state privacy laws don’t get you, potential lawsuits might.

Take LinkedIn, for example.  Earlier this month, the social network of business professionals reported that nearly 6.5 million encrypted passwords had been leaked online.

Today, Mashable.com reports that LinkedIn is facing a $5 million civil lawsuit from a user claiming that LinkedIn’s security policy violated industry standards for database security.

There really are no lessons for the rest of us to learn from this latest breach, because most of us already know what we’re supposed to do.

  • Keep passwords secure, reasonably complex, and change them regularly.data breach
  • Ensure your company is using only the most secure encryption standards like AES or Open PGP.
  • Stay abreast of the latest news and techniques for keeping your company security policies and practices up to date and as impenetrable as possible.
  • Invest in solutions that streamline your data encryption processes, that include comprehensive auditing and reporting tools, and that ensure the security of your data at rest and in motion.

The question is how much longer can you postpone taking these steps to ensure that your company isn’t making news next week with an embarrassing and costly data breach?

Susan Baird

Susan is the Marketing Manager at Linoma Software, helping promote our secure file transfer and encryption solutions. Her specialty is content creation and social media marketing, and you can find out more about her by viewing her LinkedIn profile.

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Citigroup Breach Triggers Congressional Response

Posted by on Monday, 11 July, 2011

The data breach at Citigroup in May – a breach which reportedly exposed an estimated 200,000 customer accounts – has motivated members of the U.S. Congress to re-introduce legislation to penalize the very organizations that have been victimized by hackers.  What are the next steps your company should take?

New bills to protect consumers’ personal dataLinoma Software Managed File Transfer Solutions

Two bills are proposed by both House and Senate legislators.

First, Sen. Patrick Leahy (D-Vt.) has introduced the Personal Data Privacy and Security Act of 2011.  The new bill provides:

  • Tough criminal penalties for individuals who intentionally or willfully conceal a security breach involving personal data;
  • A requirement that companies that maintain personal data establish and implement internal policies to protect data privacy and security; and
  • A requirement that the government ensure sensitive data is protected when the government hires  third-party contractors.

This act would also require, under threat of fine or imprisonment, that businesses and agencies notify affected individuals of a security breach by mail, telephone or email  “without unreasonable delay.” Media notices would be required for breaches involving 5,000 or more people.  The FBI and the Secret Service would need to be notified if the breach affects 10,000 or more people, compromises databases containing the information of one million or more people, or impacts federal databases or law enforcement.

But that’s not the only security bill that has businesses concerned.

In the House, Rep. Mary Bono Mack (R-Ca) is holding hearings in preparation of a bill she’s named The SAFE (Secure and Fortify) Data Act that would also require “reasonable security policies and procedures” to protect consumers and enable disclosures to victims and the Federal Trade Commission within 48 hours of a data breach.

Companies no longer viewed as the victims

All this sounds good from the consumer’s point of view. But what about the expense – and potential Linoma Software GoAnywhere Managed File Transfer Solutionpenalties – suffered by the “owners” of the data: the businesses themselves?

While these bills may address the public’s interest for notification — and indeed they would bring some semblance of a national standard – they also represent an interesting shift in the liabilities that companies will face.  How is that?

Though we currently have no federal data breach notification law, federal policies now view the companies that experience a data breach as the victims of crime. However, under the proposed legislative bills, companies that do not act quickly to appropriately secure the personal data of customers – or fail to report a data breach in a reasonable amount of time – would not only suffer the theft of data, but also be held liable for its loss.

This is a significant shift. Companies are now being viewed not as the owners of consumer data, but merely guardians and trustees whose job it is to protect that data or face criminal penalties. And the message is clear: if companies won’t take adequate precautions to secure the sensitive data of our customers, they’ll pay a hefty price.

Where does your company stand?

In a world in which diligent hackers have the power break into seemingly secure networks and systems, what can your company do?

The challenge is first to determine exactly what qualifies as adequate precautions.

GoAnywhere Secure Managed File Transfer A review of the HIPAA HITECH security provisions that took effect last year provides some insight about what the government considers adequate protection.

HITECH strongly recommends the use of encryption technology. Encryption is a good place for your company to start, especially when dealing with the data your company stores on its servers.  If sensitive data itself is kept securely encrypted, a data breach doesn’t expose the content of the information itself.

Secure managed file transfer protocols – which send data using encryption – is the second place to focus attention.

If data is encrypted when it is being securely transmitted between business partners, the value of that data should it be breached – through hacking, theft, or other malicious actions – is worthless.  Encryption and secure managed file transfers can dramatically minimize the holes of technical breaches, significantly reducing an organization’s liability.

Preventing exposure

The Citigroup data breach has rekindled the momentum for a nationwide, cross-industry data breach reporting standard. This standard will not to eliminate the physical breaches themselves. What’s needed is legislation to encourage companies secure the underlying data that is the target of the hackers.

Isn’t it time for your company to take a serious look at its liabilities and to investigate how encryption and managed file transfers can close these important security holes?

Thomas Stockwell

Thomas M. Stockwell is one of Linoma Software's subject matter experts and a top blogger in the industry. He is Principle Analyst at IT Incendiary, with more than 20 years of experience in IT as a Systems Analyst, Engineer, and IS Director.

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