Archive for the ‘Lawsuits and settlements’ category

Amazon’s shoe retailer Zappos attacked – Data of 24m gets affected

January 18th, 2012
This is a picture of the Zappos fulfillment ce...

Zappos center in Kentucky

You love shopping online, don’t you? It is easy, less time consuming and you can do it in your Pajamas ! No need to drive in the middle of the night to shop and waste a gallon of gas! Just a click of a button and your gift is at your door-step.

Hang on! The ‘easy’ shopping just got ‘difficult’ because you entered your credit card details online and now they are vulnerable. You thought they were secure but think again.

The recent hacking case of Zappos, Amazon’s shoe retailer, puts doubts in your mind about online shopping.

The news in detail

Information related to as many as 24 million customers was hacked into at the online shoe and clothing retailer Zappos. The retailer has requested customers to change passwords.
Zappos CEO Tony Hsieh posted an open letter online to all Zappos employees. Excerpts from the letter a “cyberattack by a criminal who gained access to parts of our internal network and systems through one of our servers in Kentucky.” “The most important focus for us now right now is the safety and security of our customers’ information. Within the next hour, we will begin the process of notifying the 24+ million customer accounts in our database about the incident and help them through the process of choosing a new password for their accounts,” adding that the existing customer passwords had been terminated.
CEO Tony Hsieh further added, “We’ve spent over 12 years building our reputation, brand, and trust with our customers. It’s painful to see us take so many steps back due to a single incident.”
The hacker most probably gained access to customer name, email address, billing and shipping addresses, phone numbers, the last four digits of the customer card numbers and the customer’s “cryptographically scrambled password.” Fortunately full credit-card and payment information has not been accessed by the hacker. This is the biggest cyber-attack since the Playstation Network hack last year. The site has been closed down for now especially for its international users. According to Zappos Amazon servers have not been affected by the hack.
Security revamp
Zappos is working with the police to investigate the matter and find out if the data was downloaded from its servers. The company has no idea as yet as to how and from where the attack originated. Zappos has discontinued its toll-free number and is  responding only via email. Customers have been requested to change their passwords.
Alertsec strengthens security
Alertsec has created a web based encryption service that radically simplifies deployment and management of PC encryption by using industry leading Check Point Full Disk Encryption (former Pointsec) software.
Organisations, especially corporate giants, have to have an information security policy in place that proves they have taken necessary steps and measures to safeguard the information they gathered. If these policies are not adhered to, the regulators may prosecute.
Alertsec Xpress is used by organizations that have recognized the need to protect their information. Customers range from single-user sole traders and consultants to multinational companies with a large number of offices around the globe. Over 4 million users worldwide use Alertsec Xpress’s Check Point Full Disk Encryption.
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2011 a bad year for Medical data breaches – Millions of patient data compromised

December 21st, 2011
Beth Givens at Privacy Revolution session

PRC Director Beth Givens gives an insight into Medical data breaches

The San Diego-based Privacy Rights Clearinghouse has come up with a list of 2011’s six most significant data breaches.

An overview

2011 has been a bad year for Medical data breaches. According to the PRC there were a total of 535 breaches that involved 30.4 million sensitive records. When we talk about sensitive information we mean Social Security numbers, drivers license numbers, financial account information and medical data.

Top breaches

The worst hit was Health Net as nine of its data servers went missing from a Northern California data center in January. The servers had records of almost two million current and former policy holders.

Sutter Health experienced data breach when its company-issued computer was stolen from Sutter’s Medication Foundation offices. Health Data of more than 4 million patients was compromised.

Tricare Management Activity and Science Applications International Corporation – Backup tapes containing data ofto 4.9 million patients were stolen from an employee’s car.

What do regulators have to say?
Regulators feel industry and legislative mandates to protect sensitive information need a revamp. National data privacy laws are gaining importance on both the national and local levels. Regulators are looking at industries where personal information is of utmost importance. Institutes such as HIPAA in healthcare and the Gramm-Leach-Bliley Act (GLBA) in financial services. It is not only the lawmakers who are imposing mandates for data security. There are a few indutries like Payment Card Industry Data Security Standard (PCI DSS) that have come up with security regulations when it comes to storing credit card information.
The other important aspect eyed by IT professionals is cloud computing. A recent EMA survey shows that organisations that had adopted or planning to adopt cloud computing were making sure that the use of data security and privacy controls was an important aspect of Service Level Agreements (SLAs) with Cloud providers.
According to Paul Hogan, CEO of T3 “This recent legislation proposal shows the absolute crisis that the US and the world’s largest corporations and government are facing regarding data breaches and the subsequent leakage of extremely sensitive consumer and government information. Cyber attacks have been around for a long time, however due to their sensitive nature, large corporations have tried their best to keep them from being reported to the media, which would no longer be possible if this legislation passes which we believe is simply a matter of time.”
Here is Beth Givens, PRC director’s statement “This is a conservative number,” said Givens. “We generally learn about breaches that garner media attention. Unfortunately, many do not. And, because many states do not require companies to report data breaches to a central clearinghouse, data breaches occur that we never hear about. Our chronology is only a sampling.”
Hospitals can secure themselves with Alertsec
Organisations and hospitals, have to have an information security policy in place that proves they have taken necessary steps and measures to safeguard the information they gathered. If these policies are not adhered to, the regulators may prosecute.
Alertsec Xpress is used by organizations that have recognized the need to protect their information. Customers range from single-user sole traders and consultants to multinational companies with a large number of offices around the globe. Alertsec Xpress’s Check Point Full Disk Encryption is used by over 4 million users worldwide.
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ICO wants to maintain location privacy so that data is not misused

December 13th, 2011

Most of our posts have been concentrating on data breach and laptop theft. This one talks in particular about strengthening data security laws which is the need of the hour, especially for private firms.

The recently held conference called ‘A fine balance 2011: location and cyber privacy in the digital age’ focused on maintaining data privacy just when smart phones, credit cards and other devices are tracking user locations.

Here is what Jonathan Bamford, the head of strategic liaison from the Information Commissioner’s Office (ICO), had to say”"We need to inspire public trust into the way information is issued. What do we do as a regulatory option?” “There is no doubt that human activities have a geographic component and some may be more sensitive than others. Your phone is with you all the time so anything that relates to a smartphone can be very powerful in terms of how I live my life.”

It si very important to manage location data carefully, especially those who develop operating systems and applications. Bamford further adds”"People who develop applications have a series of obligations as do those who create the operating systems. Everybody has a role to play.” “If location data is obtained how long do you retain it for? You can build up a picture of how I live my life if you retain it too long.”

Bamford also explained ICO’s role in data security, especially in terms of audit inspections of govt organizations. Currently the general public is under the impression that the information that they fill up on any website is completely secure. They need to carry this impression for long hence data security is of utmost importance. The people also need to know exactly what is being done about their data and where it is sent. This is where location based services come in. All advertisers want your zip code. A zip code allows a advertiser/provider to get more insight into your life. Companies are getting closer to you with technologies like iPhone.

It is time that the ICO keeps a tab over private sector as well. These private companies are using location based services and getting private data of customers. There is a very high chance of this data getting misused. Currently the ICO can only monitor govt bodies. Companies like Facebook, Google and Groupon are a potential threat to privacy. To add oil to the fire, the development of IPv6 networks could be even more threatening as it will be able to access more private data.

According to Richard Hollis, US group of Info systems audit and control association “As we match the physical world to the virtual world, by placing items such as fridges or even your car keys on the internet, firms could have even more access to your data, your location and your life”.

Use Alertsec
Organisations, especially corporate giants, have to have an information security policy in place that proves they have taken necessary steps and measures to safeguard the information they gathered. If these policies are not adhered to, the regulators may prosecute.
Alertsec Xpress is used by organizations that have recognized the need to protect their information. Customers range from single-user sole traders and consultants to multinational companies with a large number of offices around the globe. Over 4 million users worldwide use Alertsec Xpress’s Check Point Full Disk Encryption.

Use Alertsec
Organisations, especially corporate giants, have to have an information security policy in place that proves they have taken necessary steps and measures to safeguard the information they gathered. If these policies are not adhered to, the regulators may prosecute.
Alertsec Xpress is used by organizations that have recognized the need to protect their information. Customers range from single-user sole traders and consultants to multinational companies with a large number of offices around the globe. Over 4 million users worldwide use Alertsec Xpress’s Check Point Full Disk Encryption

ICO

ICO wants to inspect private firms for data security issues

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Powys County Council to pay £130,000 fine to ICO for data breach

December 9th, 2011
English: Powys County Hall, Llandrindod Wells....

Powys County Council in deep waters over data breach

Last few posts mentioned about fines being imposed on councils who have breached the data protection act. But this post breaks all records. It talks about how Powys County council was asked to pay a fine of £130,000 to ICO for data breach. This is the biggest fine ever!

The ICO’s office was conferred powers to impose fine on data breaching organizations on April 2010. Assistant Commissioner for Wales Anne Jones says”There is clearly an underlying problem with data protection in social services departments and we will be meeting with stakeholders from across the UK’s local government sector to discuss how we can support them in addressing these problems,”.

The strange part is that Powys County Council had earlier breached this act twice but had not gotten caught. But this time luck was against the organization and it is expected to pay a hefty fine. Here is the ICO’s statement regarding the earlier data breaches “Two separate reports about child protection cases were sent to the same shared printer. It is thought that two pages from one report were then mistakenly collected with the papers from another case and were sent out without being checked. The recipient mistakenly received the two pages of the report and knew the identities of the parent and child whose personal details were included in the papers. The recipient made a complaint to the council and a further complaint was also submitted by the recipient’s mother via her MP.”

The first incident was written off as an ‘once in a blue moon’ error but then a second one occured where a social worker sent data about another child to the same member of the public who was also familiar with the child.

Ann Jones further added”This is the third UK council in as many weeks to receive a monetary penalty for disclosing sensitive information about vulnerable people. It’s the most serious case yet and it has attracted a record fine. The distress that this incident would have caused to the individuals involved is obvious and made worse by the fact that the breach could have been prevented if Powys County Council had acted on our original recommendations.”

The ICO had given an warning to the council to revamp its security policies or be ready to face consequences. Not much has changed in terms of security, the latest breach makes that all too clear. Now the ICO has threatened to take the council to court if it does not get back on its feet and beef up its security measures. The ICO has further made it compulsory for the counil to train its staff on how to follow the council’s guidance on the handling of personal data by 31 March 2012, along with refresher training provided every three years.

Alertsec to the rescue

Alertsec has created a web based encryption service that radically simplifies deployment and management of PC encryption by using industry leading Check Point Full Disk Encryption (former Pointsec) software.

Organisations, especially corporate giants, have to have an information security policy in place that proves they have taken necessary steps and measures to safeguard the information they gathered. If these policies are not adhered to, the regulators may prosecute.

Alertsec Xpress is used by organizations that have recognized the need to protect their information. Customers range from single-user sole traders and consultants to multinational companies with a large number of offices around the globe. Over 4 million users worldwide use Alertsec Xpress’s Check Point Full Disk Encryption.

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Former Middletown School contractor accused of Laptop theft

December 5th, 2011

Not one or two but 400 laptops missing! A recent case of laptop theft saw 400 laptops being stolen from Middletown schools by a former contractor. A Butler County grand jury is currently reviewing the charges. If convicted, he faces 5 years prison time.

According to the Middletown police Larry A. Osborne Jr., 29,has been charged with third-degree felony theft on Nov. 9 in Middletown Municipal Court. He is accused of stealing computers since 2008. Osborne, a computer technician, was a former contractor of the Butler County Educational Service Center. The approximate value of the 400 laptops is $123,000. Osborne used to sell these computers on ebay.  He sold around 350 computers to a man in PA who had no clue that these computers were stolen property. The PA man has not been charged. The machines were either used ones or non-working.

Desk full of laptop computers

Former school contractor stole 400 laptops

The first theft was reported on Nov. 8 where eight Apple laptop computers were stolen from the district’s warehouse, 110 Baltimore St.

So far the department has recovered 46 of the 400 laptops. According to Lt. Scott Reeve. “The investigation is pretty much done. We’ve recovered all we’re going to recover,”. He further added that the thefts were discovered when the owner of 1 Stop Shipping Shop on Vail Avenue became suspicious about the no of computers Osborne was shipping.  18 laptops were recovered from 1 Stop Shipping Shop and 28 from Hallstead, PA. Lt. Reeve added “He wasn’t just taking them from one location,”. “He was taking them from multiple locations. I think that is part of the reason he got away with it for so long. He is an information technology guy and it’s not unusual to see him walking around with a computers in his hands, and they weren’t all being stolen from one location. He was spreading out the thefts at various schools throughout the district.”
Apparently Osborne was a full time IT worker with the district and lost his job a month ago when the theft came to light.

The modus operandi was that Osborne stole laptops that were left unattended while making service calls. Inspite of the fact that the district conducts general audits of its systems on an annual basis, the laptops were stole. The reason being Osborne was the employee in charge of  this district.The district is revamping its security policy to make sure such thefts do not take place in the future.

Alertsec and data encryption go hand in hand

Information has become highly mobile. There are netbooks, laptops, iphones and blackberries. You leave any of these unattended and the next thing you know is that they are stolen!

To lose any of the above device means losing valuable information! Especially when this information includes not only your personal data but that of hundreds and thousands of people.

Encryption is the best security solution to data breaches and laptop thefts. Alertsec helps you keep your info secure.