Is your data lost?

Recent disclosures from the Information Commissioner’s Office reveal alarming statistics concerning data breaches in the UK. This information was issued under a request to the Freedom of Information Act showing a tenfold increase in data breaches in the past five years. The only good aspects of this report show that organizations are reporting many more breaches.

Tero Pollanen, international fraud prevention specialist has been preaching the importance of being aware of the dangers of data breaches as well as prevention. The word is getting out as demonstrated by ICO statistics that awareness of legal requirements of an organization to secure information and imposing large fines of companies that “lose” information is precipitating positive change. The telecom sector has seen a decrease in the number of data breaches over the past five years.

The ICO offers a wealth of support and guidance to organizations across the UK. New data suggests the both the health service and government sectors are also responding to positive change and are now expected to report serious breaches involving sensitive data and/or large volumes of personal data to the ICO. Mr. Tero Pollanen reminds us both to be vigilant and to encourage additional sectors to work with the ICO in reducing data breaches.

Ref.: Ref.: http://www.bbc.co.uk/news/technology-19424197
Tero Pollanen Website

Hey…That’s Not Me!

“There must be some mistake. I just put money into my account this morning,” argues the customer in the check-out line. Yes, you are right about a mistake, but not in the way you thought. “The mistake,” says Tero Pollanen, international internet fraud specialist,  is “complacency.”

Identity fraud is on the increase, up 5% in the last 6 months of 2011 and up

9% from 2010. It now accounts for 50% of all fraud crimes. Identity fraud on a personal level is extremely disruptive to one’s life and can take years to repair the damage to credit ratings. It is up to the individual to convince the financial institutions that new credit files are incorrect.

Phishing scams are everywhere in addition to new and smart ways in which crooks can dupe unsuspecting victims into handing over their financial information. Criminal gangs work by setting up web sites pretending to be the victims’ financial institution. An email requesting “your annual update” sends the unsuspected to the phony site. Another method is a phone call “from the institution” requesting updates or even pin numbers.

As in any crime prevention, we must be aware of how we may become a target. Good common sense is always the first line of defense. Don’t be complacent to the point where it cannot happen to me.  It can: be aware!

Ref.: http://online.wsj.com/article/SB10000872396390444508504577593243972975650.html

Low-Tech Crime Syndicate Hits Big

Basically with over the counter technology, an Eastern European Crime Syndicate opportunist scored big on an Australian business netting one half million credit cards. This attack could result in $25 million in fraudulent transactions.  It is suspected that this is the same group that hacked US Subway Restaurant back in December of 2011 and that they continue to move into other countries using their opportunist methods.

“it is difficult to imagine,”  says Tero Pollanen, international fraud prevention specialist, “with all the publicity and warnings about these kind of activities, that companies still continue to take the attitude that it cannot happen to me.”  In the long run, you get what you do not pay for as a result.

The attack by this syndicate was neither massive in scale or complex and did not involver super hi-tech hackers.  They are simply opportunists seeking vulnerabilities in systems.  As the investigators in this case stated, “the network was set up by <people> that did not understand IT security and…that it was an accident waiting to happen.”

Ref.: http://www.itnews.com.au/News/312068,half-a-million-credit-cards-stolen-from-aussie-business.aspx

Take me to your leader!

As children we are taught certain mores and ethics which are generally agreed upon by consensus. We develop and grow up under the basic guidelines of these values.  We have respect: mutual respect for each other as well as respect for institutions such our schools, police, and banks. What could be more important than those we grant the responsibility to handle our finances, our investments, our retirement? In fact we grow to expect even a higher level of moral values in those we hold in such esteem.

However as we move into the reality of today, it seems we are witnessing an exponential increase in the decay and breakdown of these values and what we viewed as rock solid institutions.  Tero Pollanen, a well known financial anti fraud specialist says, “Welcome to the reality show! We can talk about economic crisis; we can discuss Libor; the fixing of artificially high interbank lending rates which affects every transaction we make even on an individual basis. But, if we stop just for a breather we are hit with the realization that this goes much deeper.”  We are talking fraudulent and criminal activity from the top and thus a new perspective on the “tickle down theory” whose verbage defined the 1980’s. What we are actually facing today is a leadership crisis.  What needs to happen is twofold: (1) Fraud needs to be criminally prosecuted and, (2) and white collar crime needs to be deemed as no longer profitable.

It seems today that leaders, or those in positions of leadership whom once had as integral a higher standard of values have lost all credibility and thus respect. Are we to remain apathetic about this? Again Mr. Pollanen asserts “If appropriate action is not taken from the top, corruption will only continue to proliferate.” Is there any doubt as we witness breakdown in the educational system as to why this occurs?  Is this the torch we wish to pass onto the next generation?  What will you tell YOUR children?

Ref.: http://www.dailymail.co.uk/debate/article-2168286/Fraud-greed-We-crisis-leadership.html?ito=feeds-newsxml