Page 21

Knowing The Path Vs. Walking The Path WHY YOU SHOULD CARE ABOUT DATA SECURITY

in the exposure of over 900 million documents) • Credit reporting

agencies

on their mobile phone

(Equifax’s

affected

trying to close several deals

• Your company has a 1 in 3 chance

almost 600 million people)

at once.

of getting hacked

By Ian J. Group, Esq., Prodeal360

Y

FEATURE

ou’re

crushed

at

work

You go to your

local cafe to get some work done For the last few years, IBM Security

coffee. With your computer screen

has released an annual report in

open, unbeknownst to you, someone

conjunction

uses their cell phone to take a picture

Institute

of your screen. Closing day comes

associated with a data breach. The

and you get an email from your

average cost of a data breach in

borrower with wire instructions

2019 is $3.92 million.

for loan proceeds.

regulated industries, like financial

with

the

outlining

Ponemon the

costs

In highly

wire funds in accordance with your

services,

borrower’s instructions.

Borrower

those costs associated with a data

calls asking where are the funds...

breach occurred after the first year

you can imagine what happens next.

following a breach.

roughly

one

third

of

The largest

portion of these costs is attributed If you want to end the story now,

to lost business. Negative publicity

go ahead and stop reading.

You

and federal or state laws mandating

know hackers are out there trying to

disclosure and reporting after a

gobble up your information and you

breach can cause financial ruin.

can continue to casually care about it.

We know from events over the last decade that the financial services

But if you want to take the red pill

industry is a target for hackers. Ask

and see how deep the rabbit hole

around and you will find recounts of

really goes, follow me...

a firm that has dealt with spoofed wire instructions. Or just look at the

While an example like the above

news to see who has been affected:

might seem extreme and implausible, think again. This is unequivocally

• Banks (JPMorgan’s 2014 breach

the reality of the financial services

affecting over 100 million customers)

industry today.

• Law firms (Cyber attack against

Let’s review some

breach

Yes, the number of examples are

and quickly leave your table to grab

You close and

2017

startling facts:

DLA Piper crippling all phones and

• Fewer than 30% of businesses are

emails)

using data encryption

• Title companies (First American’s

• 52% of people don’t use passcodes

2019 security oversight resulting

growing by the day. But what is most troublesome is that the list is filled with companies that have teams and multi-million dollar budgets dedicated to information security. If you do not think you have been or will be exposed by a data breach, think again. Experts in the industry will tell you that being hacked is not a question of “if” but rather a matter of “when.”

While you might think

your company is taking necessary precautions, you also need to be mindful of your service providers and the security they use to protect the information you give them. Just look at Retrieval-Masters Creditors Bureau Inc., a collection agency formerly used by Quest Diagnostics. A data breach at Retrieval-Masters exposed personal information of Quests’

clientele

resulting

in

a

large number of customers initially reporting fraudulent credit card charges. The financial impact of this breach recently caused the collection agency to file for bankruptcy. So whether you run a small shop or work for a large corporation, each Data Security: Continues on pg. 22

www.originate.report 21

Profile for Originate Report

Originate Report - August 2019  

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded