These are scary times we live in when it comes to data security. And the times are even scarier for today’s retailers, government agencies, financial institutions, and healthcare organisations. The internet has become a battlefield. Criminals are looking
to steal trade secrets and personal data for financial gain. Terrorists seek to steal data for political gain. Both are after your Personally Identifiable Information, like your name, account numbers, social security number, date of birth, ID’s and passwords.
How are they accomplishing this? A new generation of hackers has learned to reverse engineer popular software programs (e.g. Windows, Outlook Java, etc.) in order to find so called “holes”. Once those holes are exploited, the hackers develop “bugs” that
infiltrate computer systems, search for sensitive data and return it to the bad guys. These bugs are then sold in the black market to the highest bidder. When successful, these hackers can wreak havoc across the globe.
I recently read a Time Magazine article titled “World War Zero: How Hackers Fight to Steal Your Secrets.” The article discussed a new generation of software companies
made up of former hackers. These firms help other software companies by identifying potential security holes, before they can be used in malicious exploits.
This constant battle between good (data and software security firms) and bad (smart, young, programmers looking to make a quick/big buck) is happening every day. Unfortunately, the average consumer (you and I) are the innocent victims of this crazy and costly
war. As a consumer in today’s digital and data-centric age, I worry when I see these headlines of ongoing data breaches from the Targets of the world to my local bank down the street. I wonder not “if” but “when” I will become the next victim. According to
the Ponemon institute, the average cost to a company was $3.5 million in US dollars and 15 percent more than what it cost last year.
As a 20 year software industry veteran, I’ve worked with many firms across global financial services industry. As a result, my concerned about data security exceed those of the average consumer. Here are the reasons for this:
1.Everything is Digital: I remember the days when ATM machines were introduced, eliminating the need to wait in long teller lines. Nowadays, most of what we do with our financial institutions is digital and online whether on our mobile devices to
desktop browsers. As such every interaction and transaction is creating sensitive data that gets disbursed across tens, hundreds, sometimes thousands of databases and systems in these firms.
2.The Big Data Phenomenon: I’m not talking about sexy next generation analytic applications that promise to provide the best answer to run your business. What I am talking about is the volume of data that is being generated and collected from the
countless number of computer systems (on-premise and in the cloud) that run today’s global financial services industry.
3.Increase use of Off-Shore and On-Shore Development: Outsourcing technology projects to offshore development firms has been leveraged by off shore development partners to offset their operational and technology costs.
Now here is the hard part. Given these trends and heightened threats, do the companies I do business with know where the data resides that they need to protect? How do they actually protect sensitive data when using it to support new IT projects both in-house
or by off-shore development partners? You’d be amazed what the truth is.
According to the recent Ponemon Institute study “State of Data Centric Security” that surveyed 1,587 Global IT and IT security practitioners
in 16 countries:
- Only 16 percent of the respondents believe they know where all sensitive structured data is located and a very small percentage (7 percent) know where unstructured data resides.
- Fifty-seven percent of respondents say not knowing where the organisation’s sensitive or confidential data is located keeps them up at night.
- Only 19 percent say their organisations use centralised access control management and entitlements and 14 percent use file system and access audits.
Even worse, those surveyed said that not knowing where sensitive and confidential information resides is a serious threat and the percentage of respondents who believe it is a high priority in their organisations. Seventy-nine percent of respondents agree
it is a significant security risk facing their organisations. But a much smaller percentage (51 percent) believes that securing and/or protecting data is a high priority in their organisations.
I don’t know about you but this is alarming and worrisome to me. I think I am ready to reach out to my banker and my local retailer and let him know about my concerns and make sure they ask and communicate my concerns to the top of their organisation. In
today’s globally and socially connected world, news travels fast and given how hard it is to build trustful customer relationships, one would think every business from the local mall to Wall St should be asking if they are doing what they need to identify
and protect their number one digital asset – Their data.