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"It was fascinating to read your thoughts about our recent conversation in CSO (see The Many Challenges of Finding Work as a CISO/CSO"). And when I say "fascinating," I mean in the sense of watching Nascar: a lot of predictable left turns and some really embarrassing, squirm-inducing shots of the fans. I do like you, I think you're a nice guy, and so I wanted to give you some feedback about the interview process and what you're going to need to change to be successful. I don't think you're going to enjoy reading this. But maybe some of those hours that you're spending maintaining that "vast database" of yours could be better spent understanding why we hired someone who understands they're an engineer."

One of the most enlightening articles I have seen on the value of security to corporate America.

"According to IT Skills and Certifications Pay Index released by Foote Partners, every category of IT certification, save one, saw a decline in pay premiums over the last 12 months. The percentages shown are the change in pay premium over the given period of time. "

"A privacy watchdog's criticisms of Facebook appear to have captured the attention of the Federal Trade Commission. In a letter dated Jan. 14, David Vladeck, head of the FTC's Bureau of Consumer Protection, told the Electronic Privacy Information Center that its complaint about recent privacy changes at Facebook "raises issues of particular interest for us at this time." Vladeck added that he has asked an official to arrange a followup meeting with EPIC, but also said he can't currently confirm or deny whether the FTC has opened an investigation. FTC investigations are not public until the agency either issues a complaint or closes the matter. The FTC's consumer protection chief also said in his letter to EPIC that the commission plans to focus on privacy issues raised by social networks at the next roundtable, scheduled to be held in Berkeley, Calif. on Jan. 28. "

FTC may investigate privacy issues on FaceBook? Equal bang for the buck by identifying and educating users who post way too much personal information.

"The Identity Theft Resource Center (ITRC) reported its annual breach data for 2009 last week, and for the first time malicious attacks were more frequently identified as the source of those breaches than human error. In its "2009 Data Breach Report," the ITRC found 498 publicly disclosed breaches last year, down from 657 the year before. The downturn could have resulted from changes in breach disclosure, rather than a real drop-off in system compromises, the organization says. Interestingly, paper breaches now account for 26 percent of data leaks, up 46 percent compared to 2008. Malicious attacks outnumbered breaches attributed to human error for the first time in the three years the report has been compiled. The business sector accounted for 41 percent of data breaches, up from 21 percent the year before. Approximately 222 million records were compromised, the organization says -- and about 130 million of those came from the single breach at Heartland Payment Systems. Out of 498 breaches, only six reported they had either encryption or other strong security features protecting the exposed data, the ITRC says . "

Expect more action from the FTC on data privacy breeach

In an organization, it's human nature to resist change and to stick with the status quo that's often more comfortable and safe. Some of your teammates in your company may be devil's advocates who claim they want what's best for the business while they oppose initiatives for Innovation. As a leader and innovator-in-chief of your company, it is critical to drive the culture of Innovation throughout the organization even in the face of opposition.

In advanced markets, the firm believes the promise of mobile payments driven by NFC technology is at least four years away from reaching mass adoption. "The biggest hurdle is the need to change user behavior by convincing consumers to pay with mobile phones instead of cash and cards," said Sandy Shen, research director at Gartner.

As Forrest Gump said, "Stupid is as stupid does." The 2009 Verizon Business data breach investigation report confirmed what the 2008 report revealed -- attackers usually gain a foothold through stupid, basic errors. "In virtually all the cases, we found that lots of the things that were simple and straightforward, had they been deployed, would have stopped the attack," said Peter Tippett, vice president of research and intelligence for Verizon Business Security Solutions. "Simple things like changing the password from the word "password" on the system, those basic errors were somewhere, endlessly; they were everywhere." In fact, the 2009 Verizon Business Data Breach Investigations Report showed that 67% of the 90 confirmed data breaches that Verizon investigated last year revealed that kind of error, usually on a third-party system, often tangential to the heart of the enterprise. But they open the door to the good stuff: thousands or even millions of customer records.

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MPs have today launched an investigation into the use of snooping technology by ISPs which allows them to profile customers for advertisers and throttle or block specific types of traffic. An inquiry by the All-Party Parliamentary Group on Communication will examine issues such as the emergence of Phorm's profiling system, and the restriction of bandwidth available to specific applications such as BitTorrent. Both activities are reliant on Deep Packet Inspection (DPI) technology. "Now the Internet is part of daily life, concerns are increasingly raised about a wide range of online privacy issues," the group said in a background statement. "Should there be changes to individual behaviour? Should companies be pressed to prioritise privacy issues? Or is there a need for specific regulations that go beyond mere 'data protection' and address privacy directly?" The inquiry will also consider the impact of DPI technology on ISPs' "mere conduit" protection from liability for illegal traffic such as child pornography and copyright-infringing filesharing.

China has denied allegations that it hacked into a Pentagon IT system and recovered plans for the Joint Strike Fighter (JSF). The combat aircraft which is to be procured by Britain as well, is being produced by Lockheed Martin. In allegations first reported in the Wall Street Journal, hackers stole "several terabytes of data related to design and electronics systems". The most sensitive data however on weapons systems and its stealth technology was not breached since it is kept on computers not connected to the internet. IT experts have said that they suspect the hackers came from China although it will be difficult to identify their exact origins. Hacking into IT systems as complex as the DoD's would require the help and capabilities of another government. Recovering data on the JSF would allow countries or rogue groups who could face the aircraft in future conflicts to develop counter measures based on the aircraft's weaknesses. The Chinese strongly denied that the breach originated from their country. "China has not changed its stance on hacking. China has always been against hacking and we have cracked down very hard on hacking. This is not a Chinese phenomenon. It happens everywhere in the world," a spokesperson for the Foreign Ministry said. This is not the first time the JSF's security has been breached. Early on in the contract the DoD and Lockheed Martin admitted that there was no universal IT security policy for the 1,200 sub contractors and that leaks may have occurred. BAE subsequently admitted that their IT security for JSF material was lax and that leaks could have occurred. Britain is scheduled to buy 150 of the aircraft by 2018.

Don't underestimate the maddening complexity and considerable costs of digitizing health care records and processes. That was the overarching message from a dozen or so health care players, some of them doctors, following my recent column urging the industry to bring its IT practices into the 21st century. A few readers took issue with my labeling health care practitioners as "laggards." In fact, argues Dr. Daniel Essin, former director of medical informatics at Los Angeles County + USC Medical Center, "physicians are, and have always been, early adopters of technology." Essin, who's now chairman of an electronic medical records vendor, ChartWare, says many physicians have made multiple attempts to implement EMRs but failed. He cites six main reasons: * They can't articulate a set of requirements against which products can be judged. * EMR systems aren't flexible enough, requiring workarounds even before their implementation is complete. * There's a mismatch between the tasks products are expected to perform and the products' actual functionality. * Some systems are conceived as a "simple" add-on to the billing system. * System workflows consume way too much physician time and attention. * There isn't adequate integration between internal and external systems. Related to most of those obstacles is cost. One EMR kit at the entry level, offered by Wal-Mart's Sam's Club unit in partnership with Dell and eClinicalWorks, is priced at around $25,000 for the first physician and $10,000 for each additional one. After installation and training, annual maintenance and support costs are estimated at $4,000 to $6,500. That's still not chump change, especially for the smallest practices.

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Last week, the government took another step toward closing a legal loophole in federal privacy and security rules for emerging Health 2.0 information technology applications by issuing proposed rules aimed at covering an estimated 900 companies and organizations offering personal health records and electronic systems connected to them. The Federal Trade Commission was careful to point out its new interim proposed rule on federal breach notification requirements for the developers of electronic PHR systems did not apply to covered organizations or their business associates as defined by the Health Insurance Portability and Accountability Act of 1996, heretofore the key federal privacy and security regulation. The FTC, operating under new authority given it by the American Recovery and Reinvestment Act of 2009, noted that its new rule seeks to cover previously unregulated entities that are part of a Health 2.0 product mix. FTC staff estimates that about 200 PHR vendors, another 500 related entities and 200 third-party service providers will be subject to the new breach notification rule. The staffers estimate that the 900 affected companies and organizations, on average, will experience 11 breaches each per year at a total cost of about $1 million per group, per year. Costs include investigating the breach, notifying consumers and establishing toll-free numbers for explaining the breaches and providing additional information to consumers. Pam Dixon, founder and executive director of the World Privacy Forum, said that this isn't the first involvement of the FTC in healthcare-related regulation, noting the consumer protection agency joined with the Food and Drug Administration in a joint statement on the marketing of direct-to-consumer genetic tests. The FTC also has worked in the field of healthcare competition. She noted the compliance deadline with the FTC's "red flag rules" on provider organizations that provide consumer credit to patients for installment payment

Individuals have been at risk of having their personal information stolen and used to commit identity-related crimes long before the emergence of the Internet. What the Information Age has changed, however, is the method by which identity thieves can access and exploit the personal information of others. One method in particular leaves hundreds of thousands, and in some cases tens of millions, of individuals at risk for identity theft: large scale data breaches by skilled hackers. In this method, criminals remotely access the computer systems of government agencies, universities, merchants, financial institutions, credit card companies, and data processors, and steal large volumes of personal information on individuals. Such large scale data breaches have revolutionized the identity theft landscape as it relates to fraud on existing accounts through the use of compromised credit and debit card account information. Large scale data breaches would be of no more concern than small scale identity thefts if criminals were unable to quickly and widely distribute the stolen information for subsequent fraudulent use (assuming, of course, that the breach would be quickly detected). Such wide-scale global distribution of stolen information has been made possible for criminals with the advent of criminal websites, known as "carding forums," dedicated to the sale of stolen personal and financial information. These websites allow criminals to quickly sell the fruits of their ill-gotten gains to thousands of eager fraudsters

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This is a great time to be in the hard-drive shredding business, as companies scramble to destroy data before the bad guys have a chance to steal it. A look inside the belly of the beast (includes video). September 08, 2008 - CSO - Thanks to all the fear over data security breaches, a computer recycling operation has morphed into something much bigger - and potentially more lucrative - for the Saraiva brothers. That's not to say the nature of their work has changed much. They still make money off of companies looking to unload devices that have outlived their usefulness. They still stuff the gadgetry into a shredder on the back of a truck that reduces it to shrapnel. The difference is they're now part of the fight against data thieves. Their company, Peabody, Mass.-based Corporate Destruction Solutions, is rapidly expanding to accommodate organizations desperate to destroy old hard drives before they can fall into the hands of data thieves. And they're not alone. Several companies in the metal-shredding business confirm a surge in demand for their services in the wake of many highly-publicized data breaches.

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Purdue University last month reported its seventh data breach in the past four years. But Purdue is hardly alone. According to my records, over 300 publicized privacy incidents have occurred at U.S. institutions of higher learning since 2001, with at least 53 colleges and universities experiencing multiple breaches (see table at end of article). The regular stream of university data-breach reports has prompted Adam Dodge, assistant director for information security at Eastern Illinois University, to devote a blog - Educational Security Incidents - to the topic. When I last covered the issue four years ago (see "Security breaches challenge academia's 'open society' "), universities were the leading sector for publicized breaches. The same is true today. What's going on? Why haven't things changed? John Correlli of Los Angeles-based JMC Privacy Consulting Group has some answers. Correlli recently published a detailed analysis of the topic, "Breaches in the Academia Sector." Correlli identifies the top three root causes of university breaches: unauthorized access, usually inside jobs; accidental online exposures; and stolen laptops. "Privacy governance in academia is far too frequently thrown into the laps of the IT folks, who are then told, implicitly or explicitly, that privacy isn't a priority until it's a problem," Correlli told me.

Federal regulators slapped hundreds of small telecommunications providers for not abiding by new rules designed to protect consumer phone records, proposing more than $13 million in total fines. The Federal Communications Commission proposed $20,000 fines on more than 650 small phone, pager and wireless providers Tuesday, accusing them of not filing paperwork that certifies they have put protections in place to protect customer phone data. "I have long stressed the importance of protecting the sensitive information that telecommunications carriers collect about their customers," said Michael Copps, the FCC's interim chairman, in a statement. "The broad nature of this enforcement action hopefully will ensure substantial compliance with our [privacy] rules going forward as the Commission continues to make consumer privacy protection a top priority." In April 2007, the FCC tightened privacy requirements on phone companies in response to consumer complaints about data brokers selling phone records they had obtained illegally through "pretexting," or getting information under false circumstances. The agency required telecom companies to increase security of phone records, requiring customers to provide a password before receiving account information over the phone or online. Phone companies are required to notify customers when changes are made to their accounts or if their information has been improperly accessed. Companies are required to file annual certifications that they have complied with those requirements. The FCC said hundreds of small companies didn't provide the information in 2008, although it noted it was the first year the agency had required the paperwork. The agency warned that future noncompliance could face "more severe penalties."

Six out of every 10 employees stole company data when they left their job last year, said a study of US workers. The survey, conducted by the Ponemon Institute, said that so-called malicious insiders use the information to get a new job, start their own business or for revenge. "They are making these judgements based out of fear and anxiety," the Institute's Mike Spinney told BBC News. "People are worried about their jobs and want to hedge their bets," he said. "Our study showed that 59% of people will say 'I'm going to take something of value with me when I go'." The Ponemon Institute, a privacy and management research firm, surveyed 945 adults in the United States who were laid-off, fired or changed jobs in the last 12 months. Everyone that took part had access to proprietary information such as customer data, contact lists, employee records, financial reports, confidential business documents, software tools or other intellectual property.

The debate on Internet privacy has begun in Congress. I had a chance to sit down recently with Representative Rick Boucher, the long-serving Virginia Democrat, who has just replaced Ed Markey, the Democrat from Massachusetts, as the chairman of the House Subcommittee looking after telecommunications, technology and the Internet. Mr. Boucher is widely regarded as one of the most technologically savvy members of Congress. As he ticked off his top priorities for his panel, most involved the pressing demands of telecommunications regulation. There is a law governing how local TV stations are carried on satellite broadcasters that needs to be renewed. There is the Universal Service Fund, which takes money from most telephone customers to pay for rural service to be improved. And there is the conversion to digital television and the investments in rural broadband to be supervised. But high on his list is a topic that is very much under his discretion: passing a bill to regulate the privacy of Internet users. "Internet users should be able to know what information is collected about them and have the opportunity to opt out," he said. While he hasn't written the bill yet, Mr. Boucher said that he, working with Representative Cliff Stearns, the Florida Republican who is the ranking minority member on the subcommittee, wants to require Web sites to disclose how they collect and use data, and give users the option to opt out of any data collection. That's not a big change from what happens now, at least on most big sites.

Republican politicians on Thursday called for a sweeping new federal law that would require all Internet providers and operators of millions of Wi-Fi access points, even hotels, local coffee shops, and home users, to keep records about users for two years to aid police investigations. The legislation, which echoes a measure proposed by one of their Democratic colleagues three years ago, would impose unprecedented data retention requirements on a broad swath of Internet access providers and is certain to draw fire from businesses and privacy advocates. "While the Internet has generated many positive changes in the way we communicate and do business, its limitless nature offers anonymity that has opened the door to criminals looking to harm innocent children," U.S. Sen. John Cornyn, a Texas Republican, said at a press conference on Thursday. "Keeping our children safe requires cooperation on the local, state, federal, and family level." Joining Cornyn was Texas Rep. Lamar Smith, the senior Republican on the House Judiciary Committee, and Texas Attorney General Greg Abbott, who said such a measure would let "law enforcement stay ahead of the criminals."

A Microsoft-led group set up three years ago has backed away from its original goal of pushing for comprehensive U.S. privacy legislation. Originally, the Consumer Privacy Legislative Forum was set up to bring a diverse array of consumer companies, technology vendors and even advocacy groups together and help drive privacy legislation. But now the group has been renamed the Business Forum for Consumer Privacy and is instead being billed as "an organization focused on fostering innovation in consumer privacy governance," according to the group's new mission statement. The Forum has released a white paper at the International Association of Privacy Professionals conference held in Washington this week. "What the organization is doing is developing the framework that would make new governance possible," said Martin Abrams, an adviser to the Forum who is executive director with the Centre for Information Policy Leadership at Hunton & Williams, an international law firm. Two of the Forum's original members, Symantec and the Center for Democracy and Technology, say they have dropped out. Eastman Kodak has also dropped out, according to Abrams. He was not authorized to say who the current members are, but the group appears to include Microsoft, Hewlett-Packard, eBay and Google. U.S. consumers are covered by a patchwork of state and federal laws that are confusing for companies, and which often force consumers to work hard to protect their own data. Many of the Forum's members would like to change things, but it appears that coming up with legislative proposals was too much.

A leading technology advisor to President Obama said in a research note for his investment firm today that privacy and net neutrality will be among the biggest telecommunications issues facing the Federal Communications Commission and the administration going forward. Analyst Blair Levin, who was the co-lead of Obama's technology and innovation team along with nominated FCC Chair Julius Genachowski, wrote in a Stifel Nicolaus research note that the economic crisis and change of administration will shift the focus of telecom policy away from traditional phone companies to "Internet/edge" players. Indeed, Google and other Web video and voice companies like Skype have been increasingly active in recent years at the FCC, pushing particularly for net neutrality rules that would prevent carriers from blocking or charging more for certain content that travels over the Web. Levin said in a note that net neutrality will emerge again as an issue in the new administration for wireless networks. On the other hand, there won't likely be a push for new net neutrality rules for cable, DSL, and fiber network carriers at the FCC. "(There is a) consensus emerging that disputes about whether a wireline network management tool is 'reasonable' (or is actually blocking or degrading traffic) to be resolved on a case-by-case basis," Levin wrote in the note with analysts Rebecca Arbogast and David Kaut. It would be a tough climb to impose rules that force wireless carriers to open their networks. Apple and AT&T successfully argued to lawmakers and regulators to keep their exclusive iPhone contract. Skype's petition to the FCC to force carriers to allow any handset or software to operate on any network was shot down by former FCC Chairman Kevin Martin. He said the biggest "sleeper" issue will be privacy. With a major overhaul of healthcare records to the Web, the rise in behavioral advertising and cloud computing, where information is stored in computers strung across many geographies