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<title>Re: [Dataloss] rant: Abandon Ship! Data Loss Ahoy! [u]</title>
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<p class=MsoPlainText><font size=2 face="Arial Unicode MS"><span
style='font-size:10.0pt'>I agree with <st1:place w:st="on"><st1:City w:st="on">Sanford</st1:City></st1:place>
in that this incident (and all of the other loss notices that post every day to
this site) is indicative of the fact that the idea of “one solution”
or one perfect product is just not a reality today. <o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face="Arial Unicode MS"><span
style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face="Arial Unicode MS"><span
style='font-size:10.0pt'>I do believe that companies are trying to do the right
thing and are investing the dollars as best as they can to comply with the
myriad of privacy and regulatory guidelines (PCI, CISSP, HIPAA, GLB, SOX, etc) that
govern their day to day business practices. Unfortunately, what the best
security product / service can not eliminate is the system user (i.e. the human
factor) – <i><span style='font-style:italic'>which would also include the
use of independent contractors where we believe a lot of vulnerabilities exist</span></i>
- and this is why we feel that True Privacy / Security for any company requires
IT, Human Resources, Finance, Legal and finally insurance to work together and
implement data security best practices to protect the data, train and update
their employees and set up contingencies (that include p.r., legal notices and
insurance) to respond to an event.<o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face="Arial Unicode MS"><span
style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face="Arial Unicode MS"><span
style='font-size:10.0pt'>What can/will be implemented by each company is a
function of time, money and resources. Having seen a number of companies go
through these incidents, I can say that those companies that are more proactive
in their data risk management have reduced their potential third party
liabilities and helped to maintain customer / client loyalty. <o:p></o:p></span></font></p>
<p class=MsoPlainText><font size=2 face="Arial Unicode MS"><span
style='font-size:10.0pt'><o:p> </o:p></span></font></p>
<p class=MsoPlainText><font size=2 face="Arial Unicode MS"><span
style='font-size:10.0pt'>The final piece of the puzzle is the insurance component
- most commonly referred to as Cyber Liability and/or Security and Privacy
Liability. In the <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place>,
there are a number of carriers (10+) providing coverage that can respond to third
party individual and class action suits for breach of privacy. Many policies
will also respond to administrative and regulatory actions for defense costs and
fines and penalties. Some will also provide coverage for your expenses –
p.r., forensics, extra expense, third party monitoring services – due to
the event. Like software, each carrier has subtle nuances to their program,
your broker should work with you to develop the right program to fit your
individual risk profile.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Manny<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><a href="mailto:manny@vrtinsurance.com">manny@vrtinsurance.com</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><a href="http://www.vrtinsurance.com/">www.vrtinsurance.com</a>
– Vantage, Resolve and Trust<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal><font size=3 color=navy face="Times New Roman"><span
style='font-size:12.0pt;color:navy'><o:p> </o:p></span></font></p>
</div>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<div>
<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center tabindex=-1>
</span></font></div>
<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
dataloss-bounces@attrition.org [mailto:dataloss-bounces@attrition.org] <b><span
style='font-weight:bold'>On Behalf Of </span></b>macadamiamac<br>
<b><span style='font-weight:bold'>Sent:</span></b> Thursday, March 20, 2008
6:15 PM<br>
<b><span style='font-weight:bold'>To:</span></b> Sasha Romanosky<br>
<b><span style='font-weight:bold'>Cc:</span></b> dataloss@attrition.org<br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [Dataloss] rant:
Abandon Ship! Data Loss Ahoy!</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> </x-tab>A Qualsys (a good
system) - or equivalent installation, insurance and whatever other components a
business may implement to protect its PII data is not a set it and forget
it procedure. Kryptonite proof it ain't. No system is 100% immune from
all risk.<o:p></o:p></span></font></p>
</div>
<div><x-tab>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> </x-tab>A savvy CTSO, with
the cooperation and support of senior management will implement all of the
components: training its personnel, hard and software firewalls, changing
passwords periodically, encrypting data in use, purging data no longer needed,
periodic random testing of the system, and whatever else to reduce risk of data
loss - internal and external.<o:p></o:p></span></font></p>
</div>
<div><x-tab>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> </x-tab>An even smarter
management team will have all of the foregoing incorporated into its culture
and have on deck 1)a breach management plan; 2)notification and PR templates;
3) a recovery plan; and, 4) a re$erve or insurance.<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div><x-tab>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> </x-tab>There are federal
regulations - [see FTC 12 CFR § 315 et. seq. of the FACT Act], becoming
effective in November 2008 that mandate that financial institutions, their
providers and anyone else who deals with consumer credit (and the PII data
necessary to conduct their business), implement a host of must dos or face
penalties.<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div><x-tab>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> </x-tab>A not in compliance
business that suffers a breach will be subject to:<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><x-tab><span
style='font-size:12.0pt;color:black'>
</x-tab>* Civil Liability - Actual damages sustained if identity is stolen as a
result of corporate inaction or statutory damages up to $1,000 per affected
individual;</span></font><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><x-tab><span
style='font-size:12.0pt;color:black'>
</x-tab>* Class-Action Lawsuits - If large numbers of individuals are affected,
they may be able to bring class-action suits and get punitive damages; </span></font><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><x-tab><span
style='font-size:12.0pt;color:black'>
</x-tab>* Federal Fines - Up to $2,500 for each violation; and </span></font><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><x-tab><span
style='font-size:12.0pt;color:black'>
</x-tab>* State Fines - Up to $1,000 for each violation depending upon
jurisdiction.</span></font><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div><x-tab>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> </x-tab>So maybe a little
insurance isn't such a bad idea, n'est pas?<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><st1:City w:st="on"><st1:place w:st="on"><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Sanford</span></font></st1:place></st1:City>
Lung<o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><st1:City w:st="on"><st1:place w:st="on"><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Honolulu</span></font></st1:place></st1:City>
(yes, there are ID fraudsters in paradise)<o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
10.0pt'>http://www.identitysafeguards.com</span></font><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center>
</span></font></div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<blockquote style='margin-top:5.0pt;margin-bottom:5.0pt' type=cite cite>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Whoops, wrote too soon:<br>
<br>
http://searchsecurity.techtarget.com/news/article/0,289142,sid14_gci1306207,<br>
00.html<br>
(Thanks to a student post for pointing this out.)<br>
<br>
<br>
> -----Original Message-----<br>
> From: Sasha Romanosky [mailto:sromanos@andrew.cmu.edu]<br>
> Sent: Thursday, March 20, 2008 6:27 PM<br>
> To: 'dataloss@attrition.org'<br>
> Subject: RE: [Dataloss] rant: Abandon Ship! Data Loss Ahoy!<br>
><br>
><br>
> To my knowledge, this firm in <st1:country-region w:st="on"><st1:place
w:st="on">Canada</st1:place></st1:country-region> is the one that offers<br>
> data breach insurance:<br>
><br>
> From SANS NewsBites Vol. 10 Num. 22:<br>
> --Canadian Firm to Offer Data Breach Insurance (March 13,<br>
> 2008) As data security breaches appear more and more<br>
> frequently in the news, at least one Canadian insurance<br>
> company is starting to offer a product that would cover costs<br>
> incurred by companies when they have suffered a data privacy<br>
> breach. The policy would cover the cost of fixing computer<br>
> damage as well as costs associated with customer notification<br>
> and reimbursement and compensation paid to credit card<br>
> companies for losses from fraud. The coverage is structured<br>
> to address Canadian data privacy laws.<br>
> http://www.theglobeandmail.com/servlet/story/LAC.20080313.RINS<br>
> URANCE13/TPStory/Business<br>
><br>
> [Editor's Note (Schultz): Insurance against security<br>
> incidents in general has not caught on all that well in the<br>
> information security arena for a number of reasons. However,<br>
> this new type of insurance is likely to fare much better<br>
> because of the widespread concern about and high likelihood<br>
> of data security breaches.]<br>
><br>
> cheers,<br>
> sasha<br>
> www.romanosky.net<br>
><br>
> > -----Original Message-----<br>
> > From: dataloss-bounces@attrition.org<br>
> > [mailto:dataloss-bounces@attrition.org] On Behalf Of Kevin McPoyle<br>
> > Sent: Thursday, March 20, 2008 6:00 PM<br>
> > To: Chris Walsh; Tracy Blackmore<br>
> > Cc: dataloss@attrition.org<br>
> > Subject: Re: [Dataloss] rant: Abandon Ship! Data Loss Ahoy!<br>
> ><br>
> > What I find interesting is the recognition among the readers and<br>
> > pundits that this is an imperfect world with respect to
security. <o:p></o:p></span></font></p>
</blockquote>
<blockquote style='margin-top:5.0pt;margin-bottom:5.0pt' type=cite cite>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>> > With that in
mind, I'm unclear as to why organizations<br>
> don't transfer<br>
> > a portion of this risk to others through an insurance product?
It<br>
> > seems rational and clearly represents some mitigating of a scenario<br>
> > that will happen, not if, when. Policies are readily available,<br>
> > negotiable and clearly a deal compared to other costs. No<br>
> one like to<br>
> > "waste" money on insurance...until there is a claim.
The<br>
> supermarket<br>
> > had D&O with which to fend off the legal dogs.<br>
> > Why don't they have a "cyber" policy?<br>
> > Whose making these good decisions?<br>
> ><br>
> > -----Original Message-----<br>
> > From: dataloss-bounces@attrition.org<br>
> > [mailto:dataloss-bounces@attrition.org] On Behalf Of Chris Walsh<br>
> > Sent: Thursday, March 20, 2008 5:49 PM<br>
> > To: Tracy Blackmore<br>
> > Cc: dataloss@attrition.org<br>
> > Subject: Re: [Dataloss] rant: Abandon Ship! Data Loss Ahoy!<br>
> ><br>
> > IANAL, but this question of "due diligence" and comparing<br>
> oneself to<br>
> > one's competitors begs the question -- what harm (in the<br>
> legal sense)<br>
> > has been done here to anyone whose CC or debit card # was revealed?<br>
> > Does your answer vary depending on whether there was fraud<br>
> associated<br>
> > with that card #?<br>
> ><br>
> ><br>
> > _______________________________________________<br>
> > Dataloss Mailing List (dataloss@attrition.org)<br>
> > http://attrition.org/dataloss<br>
> ><br>
> > Tenable Network Security offers data leakage and compliance<br>
> > monitoring solutions for large and small networks. Scan your<br>
> > network and monitor your traffic to find the data needing<br>
> > protection before it leaks out!<br>
> > http://www.tenablesecurity.com/products/compliance.shtml<br>
> > _______________________________________________<br>
> > Dataloss Mailing List (dataloss@attrition.org)<br>
> > http://attrition.org/dataloss<br>
> ><br>
> > Tenable Network Security offers data leakage and compliance<br>
> > monitoring solutions for large and small networks. Scan your<br>
> > network and monitor your traffic to find the data needing<br>
> > protection before it leaks out!<br>
> > http://www.tenablesecurity.com/products/compliance.shtml<br>
> ><br>
> ><br>
<br>
_______________________________________________<br>
Dataloss Mailing List (dataloss@attrition.org)<br>
http://attrition.org/dataloss<br>
<br>
Tenable Network Security offers data leakage and compliance monitoring<br>
solutions for large and small networks. Scan your network and monitor your<br>
traffic to find the data needing protection before it leaks out!<br>
http://www.tenablesecurity.com/products/compliance.shtml<br>
<br>
<o:p></o:p></span></font></p>
</blockquote>
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