December 9, 2013 The Centre for Internet Safety, an international institution dedicated to generating real world policy to fight cybercrime and increase cybersecurity, issued a warning last week concerning a potential insurance risk that many companies are facing, most often without their knowledge.
According to the CIS report, “Traditional business insurance policies have tended to only cover ‘tangible’ assets such as PCs, laptops and other mobile devices.” In other words, the boilerplate language in commercial computer insurance policies covers damage or theft of physical hardware, but does not cover any data that may be stored within that hardware.
The CIS report continues: “Developing exposures have highlighted that electronic data is not always considered to fall under the definition of tangible assets and is just one area where cyber insurance is designed to fill a gap. Some organisations have discovered gaps in what is and isn’t covered after an attack. Unfortunately for them, by then it is too late.”
Ultimately, the cost of data theft far outweighs the cost of replacing infrastructure, especially in business and medical sectors. Average costs per breach can easily run into the hundreds of thousands of dollars when taking into the account the cost of investigation, security audits, lawsuits, and bad press.
All companies should take steps immediately to verify that their policies include clauses for data theft on a per-incident basis, and ensure that those policies are kept up to date. The mounting cost of data theft all too often means the difference between profitability and insolvency.
Implementing a secure local storage solution not only reduces the chances of having your data stolen, but can also reduce your insurance premiums. The LOK-IT flash drive from Systematic Development Group is a reliable choice, providing both premium grade encryption and a unique hardware locking mechanism that prevents any electronic access without first entering a security code in the attached keypad.
Don’t let a data breach close down your operation – double check your insurance policy, keep it up to date, and start using the LOK-IT flash drive to secure your local data today.
Insecure Flash Drive to Blame for Kaiser Patient Data Theft
December 2, 2013 The medical sector is more vulnerable than ever to risks associated with insecure hardware storage devices, as evidenced by the recent news from the Kaiser Permanente Orange County Medical Center in Anaheim, California. In late November, the Kaiser Center began informing an as yet undisclosed number of current and former patients that their medical histories, personal information, and financial details may be at risk due to the theft of an unencrypted and insecure flash drive that was used by hospital personnel to store patient data.
“We’re making every effort to recover [the flash drive], have investigated the matter, and are taking the appropriate steps to remedy the situation,” states the executive director and senior vice president for Kaiser Foundation Hospitals in Orange County, Julie Miller-Phipps. “We have no reason to believe that the information is being used for fraud or other criminal activity. Your Social Security number was NOT contained in the data.”
While it’s true that social security numbers were not part of the information stolen by the as-yet unidentified thieves, many are wondering why confidential hospital data was stored in such an insecure and easy to pilfer package. “On behalf of Kaiser Permanente, we offer our sincerest apology that this unfortunate incident occurred,” adds Director Miller-Phipps in a recent press release. “We assure you that safeguarding your information is one of our highest priorities.”
Well, if it’s such a high priority, perhaps investing in a more secure local storage solution would have saved everyone the time and headaches associated with cleaning up this mess. The LOK-IT flash drive, for instance, would have been an ideal choice for storing and transporting patient data.
An ingenious little device, the LOK-IT drive is produced by Systematic Development Group, and features not only state of the art encryption technology, but a unique hardware locking mechanism that restricts any attempt to access the stored data without first entering a security code into the 10 digit keypad.
Let’s hope Kaiser learns something from this debacle, and every healthcare organization out there should take note: not all flash drives are created equal. For reliable security that safeguards patient data – and won’t cost an arm and a leg – the LOK-IT drive delivers.