1. Corporate Data Breaches: It’s Not “If,” But “When”…

    It’s clear now that no business is safe from hackers, writes attorney Jeffrey Vagle at Pepper Hamilton. Including in particular financial institutions:

    “Newspapers around the world recently reported that a sophisticated and well-coordinated cyber-attack resulted in the theft of $45 million from thousands of ATMs worldwide. The incident accentuates the conclusions of Verizon’s 2013 Data Breach Investigation Report, compiled by a global team of government and private organizations analyzing computer security incidents over the past year. This annual report shows that companies of all sizes and types are likely to experience some sort of data breach — if they haven’t already – and highlights the risks for banks, brokers, and other financial institutions, which stand to lose the most if they fail to properly prepare for these security incidents…

    Financial institutions made especially attractive targets. The theft of $45 million through a precision operation attacking financial computer networks and thousands of ATMs is just one recent example of the threat the financial industry is facing. Over 66 percent of the data compromised in the study was either payment or bank data. To make matters worse, over 70 percent of financially motivated attacks fell into either the ‘Low’ or ‘Very Low’ categories of difficulty of initial compromise. That is, it is likely that many (if not most) of these attacks could have been thwarted if the target institutions had employed basic security and education measures.”

    Read the full update, $45 Million Cyber-Attack Is Object Lesson From Verizon Study Showing No Business Is Safe, But Financial Institutions Bear Big Data Breach Risk - Pepper Hamilton LLP»