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In all of 2008, 40 banking institutions failed - 25 banks and 15 credit unions. So far in 2009, 72 institutions have either been closed or taken over by regulators, including 7 banks just this past weekend. The Federal Deposit Insurance Corporation (FDIC)'s troubled bank list, now at 305, has more than doubled from last year's total, when 117 banks were listed. Which begs the questions: Where and why are all these institutions failing, and how many more closures will we see by year's end? Failures by the Numbers Analysis of this year's bank/credit union failures (see interactive map) reveals some interesting facts: * Total Failed Banks: 64 * Total Failed Credit Unions: 8 o Top States For Failures: o Georgia - 16 banks o Illinois - 12 banks o California - 8 banks, 3 credit unions o Florida - 3 banks * Largest Failure BankUnited, Coral Gables, FL., $12.8 billion in assets, * Total Cost to FDIC Insurance Fund: $13.553 billion

Is your bank on the list?

Failed Banks Thirty-six banks have failed this year, up from the 25 that shut down in 2008, which included Washington Mutual, the largest bank failure in US history. While the banks that have closed this year are not as large as WaMu, there have been some substantial banks that failed with assets in the billions. Click on to find out which of them rank as the 10 largest failures so far in 2009. Source: FDIC Posted June 4, 2009 »Slideshow: Largest Bankruptcies »Slideshow: World's Safest Banks

From 2003 to 2007, there were 10 bank failures in the U.S. In 2008 that number more than doubled, reaching 25. 2008's lowlight was the collapse of Washington Mutual on September 25--the biggest bank failure in American history. Thus far, 13 banks have failed in 2009.

The inability to discard worthless items even though they appear to have no value is known as compulsive hoarding syndrome. Ben Rothke explains why it's a bad habit in the world of IT security. The inability to discard worthless items even though they appear to have no value is known as compulsive hoarding syndrome. If the eccentric Collyer brothers had a better understanding of destruction practices, they likely would not have been killed by the very documents and newspapers they obsessively collected. While most organizations don't hoard junk and newspapers like Homer and Langley Collyer did, they do need to keep information such as employee personnel records, financial statements, contracts and leases and more. Given the vast amount of paper and digital media that amasses over time, effective information destruction policies and practices are now a necessary part of doing business and will likely save organizations time, effort and heartache, legal costs as well as embarrassment and more. In December 2007, the Federal Trade Commission announced a $50,000 settlement with American Mortgage Company of Northbrook, Illinois, over charges the company violated the FTC's Disposal, Safeguards, and Privacy rules by failing to properly dispose of documents containing consumers' credit and personally identifiable information. In announcing the settlement, the FTC put all companies on notice that it is taking such failures seriously. A $50,000 settlement might seem low when measured against the potential for financial harm to individuals as a result of the company's negligence, but in addition to the negative PR for American Mortgage, the settlement includes an obligation to obtain an audit, every two years for the next 10 years, from a qualified, independent, third-party professional to ensure that its security program meets the standards of the order. Any similar failures by this company during the next decade will be met with more severe punishment. That, indeed, is a

Federal regulators will be able to take back two years of pay from executives held responsible for a large bank's failure. Executives deemed "negligent" and "substantially responsible" for a big bank's failure can lose all their compensation from the previous two years under a rule approved Wednesday by the board of the Federal Deposit Insurance Corp.

"Computer scientists have recently undermined our faith in the privacy-protecting power of anonymization, the name for techniques that protect the privacy of individuals in large databases by deleting information like names and social security numbers. These scientists have demonstrated that they can often "reidentify" or "deanonymize" individuals hidden in anonymized data with astonishing ease. By understanding this research, we realize we have made a mistake, labored beneath a fundamental misunderstanding, which has assured us much less privacy than we have assumed. This mistake pervades nearly every information privacy law, regulation, and debate, yet regulators and legal scholars have paid it scant attention. We must respond to the surprising failure of anonymization, and this Article provides the tools to do so."

Assumption of privacy through anonymization of data is called into question by deanonymization techniques. The work is not new but its implications have gone under-realized. In a country struggling to understand how to even define privacy, will anyone listen?

"If there was anything even vaguely comforting about the data breaches that were announced this year, it was that many of them stemmed from familiar and downright mundane security failures. Companies continued to be felled more by usual issues such as lost laptops, unpatched or poorly coded software, inadvertent disclosures and rogue insiders, rather than by sneaky new attack techniques or devastating new hacker tools. Here's a look back at five of the more notable breaches of the year:"

More preventable security failures predicted for 2010. Way to show value!

America's civil engineers think the nation's aging and rusty infrastructure is just not making the grade. The American Society of Civil Engineers issued an infrastructure report card Wednesday giving a bleak cumulative ranking of D. "We've been talking about this for many many years," Patrick Natale, the group's executive director, told CNN. "We really haven't had the leadership or will to take action on it. The bottom line is that a failing infrastructure cannot support a thriving economy." Video Watch what the report had to say » The ranking -- which grades the condition of 15 infrastructure entities such as roads, bridges and dams -- is the same as the the last time such a report was issued, in 2005. In 2001, the grade was D+, slightly better but still poor. Roads got a D-, with Americans spending more than $4.2 billion a year stuck in traffic. "Poor conditions cost motorists $67 billion a year in repairs and operating costs. One-third of America's major roads are in poor or mediocre condition and 45 percent of major urban highways are congested," the engineers' report said. Drinking water, D-. "America's drinking water systems face an annual shortfall of at least $11 billion to replace aging facilities," the report said. "Leaking pipes lose an estimated seven billion gallons of clean drinking water a day." Inland waterways, D-. "The average age of all federally owned or operated locks is nearly 60 years, well past their planned design life of 50 years. The cost to replace the present system of locks is estimated at more than $125 billion." Wastewater systems, D-. "Aging systems discharge billions of gallons of untreated wastewater into U.S. surface waters each year." Don't Miss * Congress looks to boot zoos, golf from infrastructure list Levees, D-. Many levees are locally owned and maintained, but they are aging and their "reliability" is not known. "With an increase in development behind these levees, the risk to public health and safety from f

"The attempted attack on a Detroit-bound flight last week, along with the events preceding and following it, has provided a snapshot of the ongoing struggle to balance civil liberties and national security. President Obama on Tuesday admitted a "systemic failure" on multiple levels in the run-up to the attempted bombing. Suspect Umar Farouk Abdulmutallab was in a terror database of more than a half-million people but was not on a "no-fly" list. The administration has initiated a review of airport security and the watch-list system in the wake of the failed plot. But so far, analysts say what happened is emblematic of the struggle between privacy and security interests. "It's just (an) inability to understand the right way to strike the balance that's at fault," said constitutional attorney David Rivkin. Airlines don't have access to the government's comprehensive terrorist database. They screen travelers based on the smaller, "no-fly" list."

Perhaps this is more a question of trust (not privacy) versus security. Do we really trust our government and its agents to handle private information securely?

"If there was anything even vaguely comforting about the data breaches that were announced this year, it was that many of them stemmed from familiar and downright mundane security failures. Companies continued to be felled more by usual issues such as lost laptops, un-patched or poorly coded software, inadvertent disclosures and rogue insiders, rather than by sneaky new attack techniques or devastating new hacker tools. "

Preventable data loss damages customer trust and corporate trust.

For the third time in recent months, Tampa Bay citizens have found themselves the unwanted recipients of patients' private medical records. What's more, in two cases, the recipients' efforts to restore patients' privacy were rebuffed, suggesting the federal Health Insurance Portability and Accountability Act (HIPAA) is falling far short of its promise to protect and enforce patient privacy.

If the government won't enforce HIPAA, why bother having the law at all. Let patients know they are own their own.

The European Commission started legal action against Britain on Tuesday for what the EU executive called a failure to keep people's online details confidential. EU Telecoms Commissioner Viviane Reding said the action related to how Internet service providers used Phorm (PHOR.L) technology to send subscribers tailor-made advertisements based on websites visited. Reding said Internet users in Britain had complained about the way the UK applied EU rules on privacy and electronic communications that were meant to prohibit interception and surveillance without the user's consent. "Technologies like Internet behavioural advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules," Reding said in a statement. "We have been following the Phorm case for some time and have concluded that there are problems in the way the UK has implemented parts of the EU rules on the confidentiality of communications," Reding said. She called on Britain to change its national laws to ensure there were proper sanctions to enforce EU confidentiality rules. Unless Britain complies, Reding has the power to issue a final warning before taking the country to the 27-nation EU's top court, the European Court of Justice. If it rules in favour of the European Commission, the court can force Britain to change its laws. (Reporting by Huw Jones, editing by Dale Hudson)

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European Union's move indicates growing government concern over how Internet companies are using individuals' private data The European Commission began legal action against the U.K. Tuesday over its failure to protect Internet users from Phorm -- a covert behavioral advertising technology tested by the U.K.'s biggest fixed line operator, BT, in 2006 and 2007. The move signals growing concern in Brussels over the way new Internet-based technologies are using people's personal data. In addition to taking legal action against the U.K., the Commission also issued a general warning to all 27 E.U. countries to uphold privacy laws, especially regarding social-networking Web sites and users of RFID (radio frequency identification) technologies. In Canada, the federal government has even proposed a legislation that will provide law enforcement agents sweeping powers to obtain user information from ISPs. The Commission, the executive body of the European Union responsible for upholding laws, said the U.K. had failed to enforce E.U. data protection and privacy rules, because broadband Internet subscribers were not informed that their browsing was being tracked.

A national security panic spread through the Internet yesterday after a report by The Wall Street Journal suggested "terabytes" of classified data on the F-35 Lightning II had been stolen by hackers. Today the Pentagon and Lockheed Martin responded to the allegations saying they are untrue, and I believe them. Defense Department spokesman Bryan Whitman said, "I'm not aware of any specific concerns." That's a key phrase. Lockheed Martin--the F-35 superjet's primary contractor--also commented "We actually believe The Wall Street Journal was incorrect in its representation of successful cyber attacks on the F-35 program." And the company's CFO Bruce Tanner added "I've not heard of that, and to our knowledge there's never been any classified information breach." While it's easy to argue that these responses are merely a smokescreen to save political face, the language is much more direct than a plain old "no comment." Typically, companies protect themselves in this sort of situation by denying the existing or potential hackers any public information on the success or failure of hack attempts, obscuring the level of secrecy of any stolen data. In the F-35 case it looks like the denials are much firmer, and that suggests the developers of the JSF are confident in their security systems. It's an echo of alleged data leaks via F-35 contractor BAE Systems last year, that were later withdrawn due to lack of evidence that leaks had occurred. Government and defense contractor computer networks face a pretty continuous rate of hack attempts. As a result such companies have even more stringent data security protocols in place than normal organizations. They're still not absolutely impervious to hacking, of course, as no such system ever is. So that's why the most highly classified data--critical to the super-secret offensive and defensive capabilities of hardware like the F-35--is typically stored on computers that have an extremely low-tech "air gap firewall". They're not co

IT and business both understand the need to protect regulated customer and business data -- so long as they're in business, analysts say. Here's a look at how some folding businesses are falling short protecting data and the possible liabilities for the IT group and CIO. From HIPPA to Sarbox, a slew of regulations to protect customer and employee data force CIOs to step lively to comply. The punishment for failure to do so is costly and even dire. But once a company folds-and more are folding every week given the economy-what happens to that data? Who in the business and IT could be hit by the splatter if it all hits the fan? "Certain companies have been disposing of records containing sensitive consumer information in very questionable ways, including by leaving in bags at the curb, tossing it in public dumpsters, leaving it in vacant properties and/or leaving it behind in the offices and other facilities once they've gone out of business and left those offices," says Jacqueline Klosek, a senior counsel in Goodwin Procter's Business Law Department and a member of its Intellectual Property Group. "In addition, company computers, often containing personal data, will find their ways to the auction block," she adds. "All too often, the discarded documents and computer files will sensitive data, such as credit card numbers, social security numbers and driver's licenses numbers. This is the just the kind of data that can be used to commit identity theft." Discarded and unguarded data is now low-hanging fruit for criminal harvesters and corporate spies. "Recent client activity supports that competitors are beginning to buy up such auction devices specifically with the intention of trying to salvage the data," says James DeLuccia, author of IT Compliance & Controls. "Hard drives are being removed and sold online, or whole servers are sold via Craigslist and Ebay." In some cases, the courts insist data be sold during a bankruptcy. "Company servers, once I restore

Banks and financial firms are placing more emphasis on internal threats to cut the flow of data leakage as a result of employee mistakes or workers disgruntled with layoffs and downsizing during the economic crisis, according to a recent survey. The report, "Protecting What Matters: The Sixth Annual Global Security Survey," is based on a Deloitte survey of 250 CISOs in the financial-services industry. It found that 36% of respondents believe the internal threat represents the greatest risk to organizations, compared to 13% who said external threats are the biggest concern. Mark Steinhoff, head of Deloitte's financial services security and privacy practices, said an organization's biggest mistake would be to let its guard down. While the number of security breaches may have declined over the last year, cybercriminals are not rationing back their efforts. "The number of breaches that are occurring are really at the hands of insiders and organizations are understanding that there is a real threat of malicious attacks and exposure of personal information by insiders," Steinhoff said. The failing economy may be driving the increased concern over insider threats, Steinoff said. "The climate we're in today causes concerns about disgruntled employees," he said. "We are seeing the layoffs and other forms of downsizing. Frankly with limited budget and less than satisfied employees, it really raises the parameter on that threat." Human error is the leading cause of information systems failure, and is likely to be the main cause of security attacks in the near future, according to 86% of those surveyed. To protect against employee mistakes that lead to a breach, financial firms should focus on risk rather than compliance to protect themselves, Steinhoff said. "[Organizations] need to look at what they want to protect and look at various types of threats internally and evaluate who has access to the data and who has access to which system, and approach it from that persp

A top lawyer for P&G called upon industry execs to work harder than ever to defend self-regulation of the ad business at a gathering of top advertisers today. Speaking about the tough economic environment and increased government involvement in business affairs, Deborah Platt Majoras, VP-general counsel at P&G, said the ad business has to tout that it has been responsible and doesn't need additional oversight. The current business environment -- one in which market failures have prompted government bailouts and heightened government oversight -- is leading to a more skeptical outlook from policymakers about self-regulation. ' "The road ahead is not going to be easy, but we are not helpless," said Ms. Majoras, who, prior to joining P&G served as chairman of the Federal Trade Commission from 2004 to 2008. "The industry has been far more responsible than we get credit for. It's time that we backed up rhetoric with facts," she said.

In an indication of the legal troubles that companies can find themselves in over data breaches these days, several banks and credit unions have begun suing Heartland Payment Systems Inc. over its recently disclosed data breach. In the six weeks since the potentially massive breach was disclosed, eight banks and credit unions have filed lawsuits against Heartland over its alleged failure to take adequate measures for protecting credit and debt cardholder data. Heartland said on Jan. 20 that unknown intruders had broken into its network sometime last year and accessed payment card data belonging to an undisclosed number of customers. The breach, thought to possibly be the biggest ever disclosed, has already affected over 500 financial institutions, including a handful in the Bahamas, Bermuda and Canada. The lawsuits seek compensation from Heartland for the costs that the financial institutions said they've had to bear in notifying affected customers about the breach and in reissuing new payment cards. The lawsuits also claim damages from Heartland for costs of the alleged fraud that the banks claimed have resulted from the breach.

Two Philadelphia law firms have filed class action suits on behalf of all cardholders in the U.S. who had their credit or debit card data stolen in the Heartland Payment System (HPY) data breach. This brings to three the total number of class action lawsuits filed against the Princeton, NJ-based payments processor. The law firm of Berger & Montague filed a class action suit in the U.S. District Court for the District of New Jersey, alleging Heartland's failure to safeguard cardholder data when the company's computer systems were hacked and cardholder data was stolen. Heartland says last year it processed 100 million card transactions per month, but an unknown number of cards were impacted by the breach. The law firm says fraudulent activity has occurred on some of those cards. The law firm alleges that Heartland's security measures and intrusion detection systems were inadequate. "Because of Heartland's inadequate data security, cardholders have had their card information compromised, have been exposed to the risk of fraud, have spent and will spend time to monitor their accounts and dispute fraudulent charges, and have suffered other economic damages," the law firm says in its statement regarding the suit. Berger & Montague were also co-lead counsel in the consumer class action suit brought against TJX Companies, which resulted in a $200 million settlement. The third class action lawsuit filed in February against Heartland comes from Sheller P.C. of Philadelphia, PA. Sheller's suit against Heartland has similar charges against the payment processor. Sheller P.C. also filed its class action lawsuit in the U.S. District Court for the District of New Jersey. Sheller P.C. has also filed a consumer class action suit against RBS WorldPay for its security breach that was made public on Dec. 23, 2008. Previously, Chimicles & Tilellis LLP of Haverford, PA filed suit in the U.S. District Court for the District of New Jersey on behalf of Woodbury, MN resident Alicia Co

In Deloitte's sixth annual Global Security Survey, people are the problem. "[P]eople continue to be an organization's greatest asset as well as its greatest worry," Adel Melek, global leader of security and privacy services at Deloitte Touche Tohmatsu, said in the report. "That has not changed from 2007. What has changed is the environment. The economic meltdown was not at its peak when respondents took this survey. If there was ever an environment more likely to facilitate an organization's people being distracted, nervous, fearful, or disgruntled, this is it. To state that security vigilance is even more important at a time like this is an understatement." On one level, that couldn't be more obvious: It's not as if anyone worries about squirrels hacking servers; security has always been about people. (Robots, the report says, are unlikely to replace the human workforce during the lifetime of anyone reading the report. Finally, some good employment news.) Yet despite the obviousness of the problem, the obvious solution -- complete denial of access -- doesn't work. People use computers and computers are more useful when connected and it just gets worse from there. That may explain why identity and access management remained top of mind for survey respondents. Deloitte's survey, drawn from major financial companies around the globe, focuses on governance, investment, risk, use of security technologies, quality of operations, and privacy. It includes some good news -- external breaches have declined sharply over the past year -- and troublesome news -- fewer companies say they have the commitment and funding to address regulatory compliance. In terms of risk, specifically information systems failure, people are identified as the most significant vulnerability. "Human error is overwhelmingly stated as the greatest weakness this year (86%), followed by technology (a distant 63%)," the report states. It attributes the rising risk to increased adoption of new techno