Millions of people use search engines like Google to access all sorts of information every day. It’s become a common practice for users to search their names to see what comes up.
Imagine doing that and seeing your personal information show up in the search results, available for anyone to see. Everything including your address and social security number would appear. A security breach by the Internationale Nederlanden Groep (ING), a worldwide financial service provider, made this horror a reality for 106 of its customers. Though the file which hosted the compromised data has since been removed, the repercussions of the breach are still largely unknown.
Investigating the Breach
A filing [PDF] from the company to the the New Hampshire Attorney General’s Office explained:
On January 25, 2010 a customer alerted her securities broker to the fact she was able to access customer information through the ingfunds.com website. An electronic file containing customers’ personal information was inadvertently made accessible through the ingfunds.com website due to an isolated error, which has been resolved. The file was mistakenly posted to the website in August 2008. The error was quickly detected and the ability to access the file via link on the website was removed. The file, however, remained accessible through a specific search conducted via a web search engine. The file included the name, address, account number and social security number for 106 shareholders.
It’s remarkable that ING stored the private details of some of its customers on a file that wasn’t encrypted or even hosted on a private server. What’s really striking as dangerous is the fact that accessing this information wouldn’t require any complicated hacking- a clever search engine user could stumble on the social security numbers and do untold damage! Customers of financial institutions deserve a higher class of service- organizations like ING have a responsibility to ensure that the information they’re entrusted with remains well-protected.
Next Steps and Lessons for ING
While poor data security is hard to forgive, ING has acted quickly to resolve the issue and has done everything possible to help the customers affected. On top alerting the authorities in a timely manner, the company has conducted investigations into each customer’s account and announced that no suspicious activity had occurred. As an additional apology, ING offered a free year of credit monitoring and fraud coverage to the 106 customers to help prevent the future risk of identity theft.
Unfortunately, ING can’t get rid of this embarrassing situation that easily. Mainstream media will pick up the story and will end up damaging the business’s reputation and brand image. More so, the error may be a lot a more serious than the company realizes. It’s very likely that a number of the 106 victims will leave ING and take their business elsewhere. Some may even sue the company, especially if they incur damages due to the security breach. Identity theft may have already happened- sometimes it takes a while for the crime to be noticed. Even the Attorney General may end up imposing a fine for irresponsible business practices!
Keeping customer data secure should be an imperative for any business organization. Companies need to protect private information to avoid all the problems that ING will have to deal with in the coming weeks and months. Had ING encrypted the files which contained personal user details and stored them on a private server, this debacle could have easily been avoided.
Further Reading
ING Fund client data exposed on the web for 18 months [Office of Inadequate Security]
