Last week, C-suite executives are compromised, failure to password protect customer data leads to breach, and phishing scam awareness begins to improve.
United States – Slickwraps
Exploit: Unprotected database.
Slickwraps: Producer and distributor of hardware skins.
Risk to Small Business: 2 = Severe: The company’s databases lacked basic protections that exposed customer data to the internet. Slickwraps cited the long-term trust of its customers as a vital component of its business model, making this episode an especially problematic event for the business. The problem is compounded by the fact that an internet user tried to alert the company about the breach multiple times. Ultimately, Flickwraps discovered the breach after it was posted on Twitter.
Individual Risk: 2.428 = Severe: The company’s unsecured database exposed customer details to the internet. This included names, email addresses, physical addresses, phone numbers, and purchase histories. The breach does not extend to customers who accessed the online store as a guest, and it did not include financial data. Those impacted by the breach should be aware that this information can be used in spear-phishing attacks or for other malicious purposes. They should be especially vigilant in monitoring online communications.
Customers Impacted: 850,000
How it Could Affect Your Customers’ Business: Slickwraps has been extremely apologetic after the breach. However, this contrite posture is no replacement for simple steps that they could have taken to secure company and customer data from day one. Customers and regulatory authorities expect companies to follow basic best practices when dealing with sensitive data, and the company’s apologetic tone is unlikely to help avoid negative fallout from the incident.
United States – Clearview AI
Exploit: Unauthorized database access.
Clearview AI: Facial recognition software provider.
Risk to Small Business: 2.111 = Severe: Hackers obtained a copy of the company’s entire client list, which, given the sensitive nature of their work, is an especially egregious breach of data. In addition to the client list, hackers also obtained information identifying the number of accounts that clients set up and the number of searches conducted on the platform. In response, the company cited the inevitability of data breaches in the 21st Century, a platitude that is unlikely to placate the company’s clients. Indeed, Clearview AI is already enduring significant media scrutiny and customer blowback that could have significant implications for the company’s bottom line and future prospects.
Individual Risk: At this time, no personal information was compromised in the breach.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: Data breaches may be an unfortunate reality in the 21st Century, but that doesn’t mean that they have to be inevitable. Adjusting your defensive posture to address the most probable threats can significantly lessen the likelihood of a breach. At the same time, having the right policies and procedures in place to respond to a breach will mitigate the damage, allowing your company to meet any cybersecurity challenge.
United States – Pacific Specialty
Exploit: Phishing scam.
Pacific Specialty: Insurance provider.
Risk to Small Business: 1.444 = Extreme: Several employees fell for a phishing scam that compromised customers’ personal data. The attack allowed hackers to access some employee accounts between March 20, 2019, and March 30, 2019. However, the insurance provider wasn’t aware of the breach until November 7, 2019, and did not identify details until January 14, 2020. In response, the company has hired a cybersecurity team to update its data privacy practices, and reset all employee login credentials while enabling two-factor authentication on its accounts. Nevertheless, the company will end up paying much more than they would have if they had invested in basic security solutions.
Individual Risk: 1.857 = Severe: Personally identifiable information was compromised in the breach. This includes customers’ names, Social Security numbers, drivers’ licenses or government-issued IDs, financial information, payment card data, medical details, and health insurance credentials. Pacific Specialty is offering 12 months of credit and identity monitoring service to victims.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: Phishing scams are a known threat to every company, and organizations that are committed to data security will take steps to prevent this common attack methodology from negatively impacting customer data. Selecting strong, unique passwords for every account and enabling two-factor authentication can thwart cybercriminals, even when employees act upon a phishing scam, making them an obvious security feature for every organization. Of course, they can only prevent a breach if they are implemented before an incident occurs.
Risk Levels:
1 – 1.5 = Extreme Risk
1.51 – 2.49 = Severe Risk
2.5 – 3 = Moderate Risk
*The risk score is calculated using a formula that considers a wide range of factors related to the assessed breach.
In Other News:
A New Scam Targets Data Breach Victims
The costs associated with a data breach are well-documented, but they carry unique implications for each individual impacted by a data loss event. Now, a new scam is targeting data breach victims who are looking to recoup financial losses or exact justice. This scam originates from a website claiming to be run by the US Trade Commission, and it promises to provide financial compensation for data breaches involving personal data.
Unfortunately, the US Trading Commission does not exist, and the fraudulent website is collecting personal information, including names, credit card numbers, and Social Security numbers, which the website claims will be used for identification purposes. While the website boasts many hallmarks of a phishing scam, it can be enticing for victims to provide this information out of desperation or frustration.
Unfortunately, there isn’t a magic cure after a data breach hits. Instead, companies need to focus on their defensive strategies before an attack. For instance, securing accounts using two-factor authentication, training employees to spot phishing scams, and assessing your network for unseen vulnerabilities are all steps that companies can take to help ensure that a breach doesn’t occur in the first place.
A Note From Kobargo
Phishing Scam Awareness is On the Rise. So Are Phishing Scams.
This week marks the 100th issue of ID Agents Week in Breach newsletter. From the beginning, we’ve provided a weekly rundown of the most prescient cyber threats impacting SMBs, and phishing scams always make the top of the list.
Phishing scams, and their various iterations, including pharming, smishing, and vishing, account for a growing number of cybercrimes, according to the FBI’s latest Internet Crime Report. The latest iteration found a 59% increase since 2015. Similarly, business email compromise, which often includes elements of phishing scams, is up 160%.
However, the report doesn’t only include bad news. It found that 96% of people are aware of the possibility of a phishing scam, and 88% were able to accurately explain the threat. Unfortunately, many people only view phishing scams as an email threat, which, as we explained in a blog post last year, only accounts for one attack vector among many.
Ultimately, it appears that phishing scam awareness training is proving to be an effective tool to educate people on a growing threat category that impacts everyone.
Contact Kobargo Technology Partners to schedule a free consultation today!
Last week, small businesses fail to prevent phishing attacks, online shoppers have their data access snatched, and a new study reveals the prominent role of human error in data breaches.
United States – Idaho Central Credit Union
Exploit: Unauthorized data access
Idaho Central Credit Union: Financial institution
Risk to Small Business: 1.555 = Severe: The Idaho Central Credit Union has reported two data access breaches that compromised personally identifiable customer information. The first incident occurred in November 2019 when a third-party mortgage portal was victimized by hackers. While investigating the first breach, cybersecurity experts identified a second incident stemming from several compromised employee email accounts. In today’s digital economy, a company’s competitive advantage is predicated on its ability to protect customer data. Two consecutive data breaches will have far-reaching repercussions for the credit union.
Individual Risk: 2.142 = Severe: In both incidents, the personally identifiable information of the bank’s customers was compromised. This included names, dates of birth, Social Security numbers, financial account information, tax identification numbers, and other sensitive financial details. Cybercriminals can redeploy this information in a host of harmful ways. Those impacted by the breach should enroll in identity and credit monitoring services as soon as possible.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: Email accounts are serious vulnerabilities for every company, as there are many ways by which cybercriminals can exploit social engineering and malware to find their way in. However, every company can lock down their email accounts by implementing two-factor authentication to prevent unauthorized access, even if login credentials are compromised.
United States – Monroe County Hospital & Clinics
Exploit: Phishing scam
Monroe County Hospital & Clinics: Public medical practice
Risk to Small Business: 1.666 = Severe: Hackers gained access to the clinic’s email system, which contained patients’ protected health information. The breach, which was discovered in December 2019, spanned several months and gave bad actors plenty of time to misuse patient data. Now Monroe County Hospital and Clinics face intense regulatory scrutiny due to the sensitive nature of the breach, and their reputation has been badly damaged in an industry that is especially sensitive to privacy concerns. In addition to other recovery expenses, they will bear the cost burden of providing credit and identity monitoring services for the thousands of patients impacted by the breach.
Individual Risk: 2.428 = Severe: Personal data was compromised in the breach. This includes names, dates of birth, addresses, insurance information, and treatment information. In some cases, patients’ Social Security numbers were also exposed. Those impacted by the breach are encouraged to enroll in the credit monitoring service provided by the company and monitor their accounts and digital communications for potential instances of fraud.
Customers Impacted: 7,500
How it Could Affect Your Customers’ Business: Despite incredible advancements in fraud detection technology, phishing scams will inevitably make their way into employees’ inboxes. When employees engage with malicious content, it can have enormous consequences for your organization. Nobody wants to endure the rising costs associated with a data breach, and comprehensive employee awareness training can ensure that those phishing scams don’t impact your bottom line.
Australia – Ashley Madison
Exploit: Unauthorized database access
Ashley Madison: Adult romance website
Risk to Small Business: 2 = Severe: Cybercriminals are redeploying data from Ashley Madison’s 2016 data breach to target Australian users with sextortion emails. These messages contain intimate and highly personal information gleaned from the breach, and cybercriminals are threatening to publicly release the information if victims don’t pay a Bitcoin ransom. The emails are highly personalized and include sensitive personal details derived from the initial data breach. While it’s easy to write-off a data breach at an adult website, it reflects the IT environment experienced by any company that collects personal data, and the many ways that hackers exploit that information to make money.
Individual Risk: 2.142= Severe: The personalized emails include users’ names, bank account numbers, phone numbers, addresses, and dates of birth. It also contains private content and communications conducted on the website.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: Data access breaches impact more than just a company’s bottom line. They often have tangible consequences for each individual compromised in a breach, and even years after a breach, they can continually reappear, causing personal, psychological, and financial trouble for victims. It should encourage every company to take every step possible to protect personal data.
Risk Levels:
1 – 1.5 = Extreme Risk
1.51 – 2.49 = Severe Risk
2.5 – 3 = Moderate Risk
*The risk score is calculated using a formula that considers a wide range of factors related to the assessed breach.
In Other News:
3 GDPR-Covered Countries Experience 100,000 Breaches
It’s been nearly two years since GDPR changed the data privacy landscape by bringing regulatory oversight to the digital Wild West. According to the latest reports, more than 160,000 data breaches have been reported in that span. Incredibly three countries account for 100,00 breaches – The Netherlands, Germany, and the United Kingdom.
These numbers reflect both the undeniable value of stealing sensitive personal data and the difficulty that many organizations experience when trying to protect that information. As a result, GDPR fines are becoming increasingly common for companies under the regulations’ purview. The ten most significant GDPR breaches have resulted in hefty financial penalties totaling an eye-popping sum of nearly $500 million.
Europe isn’t the only country implementing regulatory standards for data security. In the US, California’s Consumer Privacy Act and New York’s SHIELD Act both reinforce and extend GDPR’s expectations. At ID Agent, our comprehensive Compliance Manager is ready to help your organization achieve, maintain, and document compliance.
A Note From Kobargo
Human Error is a Top Cause of Data Access Breaches
Companies face cybersecurity threats on many fronts every day, but human error may be the most pervasive – and the most preventable. A 2019 study analyzing data from the UK’s Information Commissioner’s Office found that human error played a role in 90% of data breaches last year. This represents a significant increase from just two years ago when only 61% of breaches were attributed to human error.
The study concluded that phishing scams were the primary cause of breaches with unauthorized access to systems ranking a close second. However, the study’s authors were also quick to point out that while employees represent a noteworthy data privacy risk, they can also serve as a critical defense against cybercriminals. When equipped with the right tools, like phishing scam awareness training, employees can be transformed from a potential weak point into a crucial asset in the fight against cybercriminals and fraud.
Contact Kobargo Technology Partners to schedule a free consultation today!
Last week, companies are slow to stop phishing attacks, ransomware disrupts productivity, and IBM’s latest threat analysis outlines trends for 2020.
United States – Altice USA
Exploit: Phishing Attack
Altice USA: Cable and internet provider
Risk to Small Business: 2 = Severe: A phishing attack tricked an employee into providing hackers with email credentials that were used to access and download inbox content remotely. Although the breach was announced on February 5th, the phishing scam was executed in November 2019. It wasn’t discovered until December 2019, which raises questions about the company’s data security capabilities and notification strategy. As a result, Altice USA will have a difficult time restoring customer confidence, which will be critical to recovering from this preventable data breach.
Individual Risk: 2.285 = Severe: Customers’ personal information was compromised in the breach. This includes Social Security numbers, birth dates, and other personal details. The company claims that financial information was untouched by the breach and is offering free identity and credit monitoring services for affected victims to protect compromised data.
Customers Impacted: 12,000
How it Could Affect Your Customers’ Business: Phishing attacks are easy to deploy, and they are devastating to companies compromised by malicious messages. Although security processes are unlikely to keep all phishing emails out of their employees’ inboxes, they can render the attacks useless by providing comprehensive awareness training that teaches and trains employees to identify phishing scams.
United States – St. Louis Community College
Exploit: Phishing Attack
St. Louis Community College: Public academic institution
Risk to Small Business: 2.111 = Severe: Several employees fell for a phishing scam that compromised students’ personal information. The phishing attack, which took place on January 13th, happened just weeks before the school implemented two-factor authentication on January 31st. If this effective defensive measure was in place sooner, hackers would not have been able to access employee accounts, even after they provided their credentials on a phishing form. In response, the college is retraining employees who clicked on a phishing email, and they are updating their procedures to prevent a similar event in the future.
Individual Risk: 2.428 = Severe: Students’ personal data was compromised in the breach, including names, ID numbers, dates of birth, addresses, phone numbers, and email addresses. In addition, 71 students had their Social Security numbers stolen. This information can be used to execute identity fraud or to target victims with spear-phishing campaigns that could provide hackers with even more damaging personal data. Those impacted by the breach should enroll in credit and identity monitoring services to oversee the responsibility of identifying misuse, and they should carefully evaluate online communications for signs of a phishing scam.
Customers Impacted: 5,000
How it Could Affect Your Customers’ Business: This incident is a tragic reminder that, when it comes to data security, timing is everything. Phishing attacks awareness training and two-factor authentication can go a long way toward protecting the company and customer data, but they need to be in place before an attack occurs. Therefore, installing proactive measures should be a top priority in the days and weeks ahead.
Australia – Ashley Madison
Exploit: Unauthorized database access
Ashley Madison: Adult romance website
Risk to Small Business: 2 = Severe: Cybercriminals are redeploying data from Ashley Madison’s 2016 data breach to target Australian users with sextortion emails. These messages contain intimate and highly personal information gleaned from the breach, and cybercriminals are threatening to publicly release the information if victims don’t pay a Bitcoin ransom. The emails are highly personalized and include sensitive personal details derived from the initial data breach. While it’s easy to write-off a data breach at an adult website, it reflects the IT environment experienced by any company that collects personal data, and the many ways that hackers exploit that information to make money.
Individual Risk: 2.142= Severe: The personalized emails include users’ names, bank account numbers, phone numbers, addresses, and dates of birth. It also contains private content and communications conducted on the website.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: Data breaches impact more than just a company’s bottom line. They often have tangible consequences for each individual compromised in a breach, and even years after a breach, they can continually reappear, causing personal, psychological, and financial trouble for victims. It should encourage every company to take every step possible to protect personal data.
Risk Levels:
1 – 1.5 = Extreme Risk
1.51 – 2.49 = Severe Risk
2.5 – 3 = Moderate Risk
*The risk score is calculated using a formula that considers a wide range of factors related to the assessed breach.
In Other News:
More than Half of British Consumers Endured a Data Breach in 2019
The latest IBM threat report examines the most prescient threats facing business in 2020, and its findings should alarm cybersecurity leaders. Notably, the report found that hackers are not turning to overly sophisticated techniques to access company IT. Rather, they are relying on the deluge of personal data already available to access an organization’s infrastructure. When those methods fail, many are deploying phishing scams as a cheap, relatively safe way to compromise employee credentials.
According to IBM, phishing attacks and unauthorized credential use were two of the most prominent attack methodologies, with the exploitation of vulnerabilities completing a risk triumvirate for companies to address in the year ahead.
The report’s silver lining is that companies are not powerless against these threats. Employee awareness training can render these attacks useless, and integrated two-factor authentication can prevent unauthorized account access even when credentials are compromised. Together, they present a meaningful way for every company to protect itself against the most likely threats in the year ahead.
A Note From Kobargo
Ransomware Attacks Are Driving Up Cyber Insurance Rates
Ransomware attacks were one of the defining cybersecurity threats of 2019, and just one month into 2020, it’s clear that bad actors will continue to deploy this malware to capitalize on their criminality. As companies grapple with the implications of this new reality, many are turning to cybersecurity insurance as a way to offset the cost and consequences of an attack. Unfortunately, ransomware attacks have become so common that cyber insurance rates have soared in response.
According to some reports, cybersecurity insurance has increased by as much as 25% in the past year. At the same time, insurance companies are expanding their offerings, adapting their business model for shifting data security and regulatory landscape. However, companies relying on cyber insurance will likely be disappointed as payouts rarely cover the cost of an attack, and increasingly high premiums make it an affordable option to begin with.
Instead, many organizations would be better off investing in a robust defense strategy that can defend against a ransomware attack before it happens. It’s the only way to truly avoid the escalating costs and consequences of a ransomware attack.
Contact Kobargo Technology Partners to schedule a free consultation today!
Last week, ransomware erodes productivity, a malware attack permanently destroys patient data, and a new study reveals the extent of data breaches in the UK.
United States – TV Eyes
Exploit: Ransomware
TV Eyes: Media monitoring service
Risk to Small Business: 2.222 = Severe: An unidentified ransomware strain has disabled the network’s core servers and engineering workstations. As a result, clients have been unable to access any information, which could have broad and long-lasting financial consequences for the media monitoring company. TV Eyes has declined to pay the ransom. Still, brand erosion and opportunity costs will make this an expensive attack at a critical time for the company, whose services are widely used by news outlets and PR agencies to access media content for reporting purposes.
Individual Risk: 2.875 = Moderate: At this time, no personal information was compromised in the breach. However, some PR professionals and media members had expressed fears that their data was compromised before hackers encrypted their files. Those impacted by the breach should update their account credentials while being especially critical of digital communications.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: In addition to academic and government institutions, cybercriminals are increasingly targeting businesses that store customer data. Many are now willing to compromise customer data if ransom demands aren’t met, a new reality that significantly increases the potential damage of a ransomware attack. Since ransomware attacks always require a vulnerability to gain network access, companies should regularly assess their defensive postures to ensure that they are prepared for this nefarious attack methodology.
United States – Electronic Warfare Associates (EWA)
Exploit: Ransomware
Electronic Warfare Associates (EWA): Electronic product and services company
Risk to Small Business: 2.111 = Severe: Cybercriminals encrypted the company’s web servers, leaving customer-facing signs of a cyberattack even several days after the event. In response, the company took down the affected servers, and it’s unclear how much of the company’s internal IT is impacted by the attack. More than a week after the attack was discovered by security researchers, EWA still hasn’t issued a statement to the public. This lack of transparency could complicate their recovery process, which already promises to be an arduous journey due to the complicated nature of their business.
Individual Risk: No personal information was compromised in the breach.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: Ransomware attacks often come with cascading consequences that impact every part of a business. Not only does this attack vector come with high up-front expenses, but the reputational damage and opportunity cost can be even more damaging. Every company should assess its threat landscape to ensure that it can adequately defend against a devastating ransomware attack.
United States – Fondren Orthopedic Group
Exploit: Malware attack
Fondren Orthopedic Group: Orthopedic healthcare services provider
Risk to Small Business: 1.555 = Severe: A malware attack destroyed a number of the medical provider’s patient records. The incident was first discovered in November 2019, but IT administrators only recently identified the permanent damage to their digital records. As a result, patients have to complete new patient information forms that include detailed medical histories. Given the sensitive and incredibly important nature of this information, this attack could negatively impact patient care, and it will undoubtedly invite regulatory oversight.
Individual Risk: 2.285 = Severe: Fondren Orthopedic Group noted that there is no evidence of patient information being compromised. However, the lost data includes patients’ names, addresses, phone numbers, treatment data, and healthcare information. It stands to reason that if hackers can erase patient data, then they can also use it for other nefarious purposes. Those impacted by the breach should carefully monitor their online accounts for unusual or suspicious activity, and they should scrutinize digital communications because compromised data is often redeployed in spear-phishing attacks.
Customers Impacted: 30,049
How it Could Affect Your Customers’ Business: After this devastating malware attack, Fondren Orthopedic Group announced an update to their cybersecurity practices, a move that is too little, too late for the thousands of patients impacted by the breach. There are many steps companies can take to mitigate the risk of a data breach, but those steps need to be taken before an incident occurs. Otherwise, these measures serve as vanity metrics as opposed to a defensive strategy.
Risk Levels:
1 – 1.5 = Extreme Risk
1.51 – 2.49 = Severe Risk
2.5 – 3 = Moderate Risk
*The risk score is calculated using a formula that considers a wide range of factors related to the assessed breach.
In Other News:
More than Half of British Consumers Endured a Data Breach in 2019
Globally, data breaches are increasing in both frequency and scope, a reality that is acutely felt by users in the United Kingdom. According to a new study, 58% of UK citizens experienced a data breach in the past twelve months. While today’s cyber threats are complicated and multifaceted, the study attributed the rise of increasingly complicated phishing attacks as a primary vector for data compromise.
Not too long ago, we reported on four phishing attack trends that were impacting the data security landscape, and it’s clear that those methodologies were astonishingly effective at compromising user data in the past year.
However, the report didn’t just identify the troubling trend. It recommends that users ditch their redundant, simplistic, and overly-personal passwords for strong, unique passwords across all of their accounts. Also, it encouraged users to adopt two-factor authentication as an effective way to prevent cybercriminals from gaining account access.
While business email compromise is enabling data breaches with stunning frequency, companies and consumers are not powerless. Contact ID Agent today to learn about our industry-leading tools for repelling phishing scams and protecting account integrity with two-factor authentication.
A Note From Kobargo
Phishing Scam Invokes Executive to Trick Employees
An employee of Village Care Rehabilitation and Nursing Center (VCRN), a non-profit healthcare provider, fell for a complicated phishing scam that compromised patients’ protected health information. The fraudulent message was purportedly sent from a company executive, a scenario that inherently elicited the employee’s trust to provide authority for sharing data via email.
The episode is indicative of how phishing scams have evolved to become more personal and difficult to detect. With data breaches only becoming more expensive and consequential, every business should review and update its security awareness training to ensure that it accounts for the latest threats and trends.
In other words, identifying unsophisticated spear-phishing emails with a spam filter won’t be enough to combat today’s phishing scam trends. However, comprehensive employee awareness training, like that offered by ID Agent, can ensure that your company is protecting against phishing scams.
Contact Kobargo Technology Partners to schedule a free consultation today!
Last week, a phishing scam compromised an entire healthcare network, malware impacted productivity, and ransomware attacks become costlier than ever.
United States – Tampa Bay Times
Exploit: Ransomware
Tampa Bay Times: Local news organization
Risk to Small Business: 2.111 = Severe: Cybercriminals infected Hanna Andersson’s online store with payment skimming malware that collects customers’ personally identifiable information. The breach impacted customers shopping between September 16 and November 11, 2019. The company only identified the breach after being notified by law enforcement, and the consequences were exacerbated because Hanna Andersson failed to follow PCI standards for payment card encryption and CVV management. As a result, the company will likely face both customer blowback and regulatory scrutiny, neither of which will help the business thrive.
Individual Risk: No personal information was compromised in the breach.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: Cybercriminals are frequently turning to ransomware attacks to exploit companies that can’t or won’t protect their critical IT. These attacks are relatively easy to deploy, and, for organizations unprepared to defend themselves, they are uniquely expensive. With today’s threat landscape, it’s critical to regularly assess and update your defense posture to meet the moment.
United States – California Healthcare Network
Exploit: Phishing scam
California Healthcare Network: Hospital and urgent care center operator
Risk to Small Business: 1.888 = Severe: Employees fell for a phishing scam that compromised patients’ protected health information (PHI). The company first discovered the breach on June 19, 2019, when it secured accounts by resetting login credentials. However, an additional investigation revealed that patient data was compromised in the breach. The California Healthcare Network is notifying patients of the incident and updating the email security standards, but the real test is certainly still ahead. Healthcare data breaches are the most expensive of any sector, and the company will undoubtedly endure intense regulatory scrutiny because of the sensitive nature of the breach.
Individual Risk: 2.428 = Severe: Hackers had access to patient data contained in employee email accounts. California Health Network declined to provide specific data categories, but healthcare records often include patients’ most sensitive personal data. The access is limited between June 11, 2019, and June 18, 2019, but the information has now been available for more than six months, so those impacted by the breach will want to work quickly to secure their data. The California Healthcare Network is offering free credit monitoring services to all victims.
Customers Impacted: 199,548
How it Could Affect Your Customers’ Business: Most data breaches begin with a successful phishing scam. Every organization has a responsibility to train its employees in defensive best practices, which is a relative bargain compared to the high cost of a data breach. In doing so, organizations transform a known vulnerability into a valuable asset to their defensive posture.
Germany – City of Potsdam
Exploit: Malware attack
City of Potsdam: Local municipality
Risk to Small Business: 2 = Severe: A malware attack forced the City of Potsdam to bring its network entirely offline to prevent further expansion and data exfiltration. As a result, government employees cannot send or receive an email, and most administrative functions are inaccessible. While emergency services remain unharmed, there will be a significant cost for the government, as worker productivity slows, sales opportunities are missed, and recovery efforts eat away at precious resources.
Individual Risk: No personal information was compromised in the breach.
Customers Impacted: Unknown
How it Could Affect Your Customers’ Business: Data breaches continue to become more expensive, partly because the opportunity costs are so high. In the digital age, cyberattacks can render an organization useless, eroding their bottom line and dampening the future financial outlook. Unfortunately, many organizations can’t sustain that level of financial loss and are forced to close their doors. However, a strong defense posture can ensure that your business is ready to thrive amidst today’s evolving threat landscape.
Risk Levels:
1 – 1.5 = Extreme Risk
1.51 – 2.49 = Severe Risk
2.5 – 3 = Moderate Risk
*The risk score is calculated using a formula that considers a wide range of factors related to the assessed breach.
In Other News:
Recovering From a Ransomware Attack is More Expensive Than Ever
2019 saw a steep rise in the number of ransomware attacks impacting vulnerable organizations. Unfortunately, recovering from these attacks is becoming more expensive than ever. According to a new report, the total recovery cost of a ransomware attack doubled in the last quarter of the year, reaching $84,116.
In some cases, the cost is increasing because cybercriminals demand higher ransoms, but other factors, including hardware replacement, lost revenue, and brand erosion, all contribute to this incredibly high sum.
In addition, the report detailed the latest escalation in ransomware attacks. Cybercriminals are not content with just encrypting data and demanding Bitcoin payments anymore. They are increasingly willing to release company data online, which can provide both a greater incentive for companies to pay the ransomware and add a secondary revenue stream for criminal operations. Taken together, it’s clear that today’s organizations need to reassess their defensive postures as it relates to this escalating threat.
Notably, ransomware always requires an access point and a foothold to encrypt company data. Closing off common loopholes like phishing emails and securing employee accounts with simple, effective tools like two-factor authentication can help ensure that your organization isn’t the next victim of an expensive ransomware attack.
A Note From Kobargo
Canada Plans to Update Its Data Privacy Laws
Data privacy regulations are becoming par for the course in today’s dangerous digital landscape. In addition to Europe’s tone-setting General Data Protection Regulation, California’s Consumer Privacy Act and New York’s SHIELD Act bring robust privacy regulation to the US. Now, Canadian authorities are indicating that they are ready to update the country’s data privacy laws as well.
According to the country’s Privacy Commissioner, David Therrien, Canada wants to update its mechanisms for providing support to individuals and accountability for companies. Currently, two federal statutes regulate data privacy in Canada, and when the country updated their requirements in 2018, the number of reported breaches increased six-fold in the following year.
It’s likely that Canada will continue to update its guidelines, specifically in the area of enforcement. By implementing financial penalties for data security, Canada would more closely align its data privacy laws with other prominent regulations. Collectively, it’s clear that digital platforms no longer operate in a veritable Wild West. Instead, companies are going to need to learn how to achieve and demonstrate compliance with multifaceted privacy laws around the world.
Contact Kobargo Technology Partners to schedule a free consultation today!