High profile companies have been experiencing data breaches of record-breaking proportions.  Emphasis on the news is on 1) how did this happen? 2) how to stop it from happening again, 3) protecting yourself as a consumer from this type of threat and 4) how a company (issuer) can protect itself from cyber threats.

Why Issuers Should Care

• The use of sensitive, personal information for any purpose (such as looking up an account) has to be safe guarded.
• Vendors, including third party vendors – develop special indemnity language in contracts to cover damages to your reputation, brand and shareholders.
• Know how many shareholders subscribe to online account access.
• Target these shareholders to educate them on password format and the downfall of phishing.
• Cost – pay for a year of credit monitoring for those impacted. Cost of losing credibility on a brand level. Trust issues. Public relations nightmare. Impact to stock price.
• Keep the company name out of the news relating to this negative issue.
• E-mail – never a secure method of communicating sensitive information such as account numbers and social security numbers.

Links

• Wells Fargo Fraud Information Center
• DHS: Cyber Attack Protection
• Cyber Security Awareness Month (October)
• DHS: Combatting Cyber Crime
• Scientific American: Crime Ring Revelation Reveals Cybersecurity Conflict of Interest
• National Cyber Security Alliance: Staying Safe Online