Category Archives: banking

INTERIM. Retailers v. Financial Institutions. Data Security Legislation Cage Fight. 4 Key Points Informed Intel

Retailers and Financial Institutions are like the Hatfields & the McCoys when it comes to federal data security legislation.  

Here’s what you need to know when this fight comes to your state legislature:

  • Fairness.  Retailers think it unfair to hold retialers to the financial institution standards for customer notification upon a data breach.
  • Impact Beyond Small Businesses. The impact of imposing financial institution standards on businesses will impact businesses large and small…

INTERIM. 4 Credit Card Processing Recommendations for TX House Committee on Investments & Financial Institutions.

The Credit Union National Association proposed the following changes to credit card processing in Texas to improve data security:

  • Data Security at Merchant Level. Require merchants receiving payment by credit or debit cards to protect the sensitive personal financial information they receive;
  •  Require Consumers to Notify Card Processors of Breaches. Require card recipients to notify their card processor immediately upon detecting a breach, and require the information be provided to the…

3 Points Informed Intel. Why Hackers Target Healthcare Over All Other Industries.

Hacking incidents by industry:

  • 23% of data breaches occured in healthcare
  • 18% of data breaches occured in financial services
  • 16% of data breaches occured in education

34% of healthcare data breaches are caused by employee error

The average notification timeline after a breach:

  • 69 days to detect the incident
  • 7 days to contain it
  • 43 days to analyze what happened
  • 40 days to notify potentially affected individuals

Health IT Security | Healthcare Data Breaches Most Common in 2015…

New Agency Jumps into Data Security Regulations. Consumer Financial Entities. 3 Key Points.

  • the Consumer Financial Protection Bureau levied a fine against an online payment system company for the company’s data security practices in violation of the Consumer Finance Protection Act
  • Consumer Financial Protection Bureau? Sounds Like Consumer Credit Commissioner?
  • The regulators say the encryption touted by the company did not live up to its hype

Bloomberg BNA | Consumer Finance Agency Levies First Data Security Fine

National Law Review | Dwolla Fined $100,000 by CFPB in First…

INTERIM. 8 Elements of Data Security Laws & Regulations.

  • Data Breach Definition.
    • What data was breached?
    • The level of knowledge the data holder must have of the breach before notification is triggered. Did they know? Is it reasonable that this data was breached?
  • How to treat good faith access to data by an unauthorized employee
  • How to treat the breach of account creditial information.
    • user name, passwords, and security questions
  • Timing.
    • ​When must notification be given?
  • How to treat data processors, people who hold the data but…

Trend: Financial Regulators Target Security. 3 Trends.

The SEC is getting tough on data security. State financial agencies likely to follow suit. Here’s what’s happening:

  • Enforcement actions against companies with weak security protocols
  • The SEC expects financial firms to have security planning in place before a hack
  • Periodic risk assessments and encryption are key

Financial Times | Securities and Exchange Commission gets tough on cyber security

5 Most Costly Data Breaches of 2015. Taxpayer Costs. Procurement Opportunities.

  • IRS breach. 100,000 taxpayers exposed. Estimated cost $50 Million.
  • Anthem health insurance breach. 80 million health insurance records leaked. Cost estimate $100 Million.
  • Office of Personnel Management.  21 million federal employee and contact records breached. Minimum cost is the $133 million contract to a credit monitoring and mitigation services provider.
  • Ashley Madison Breach. 37 million customer information hacked. A class action lawsuit seeks $578 million.
  • Two Year 100 banks…

INTERIM Lege Trend: State Proposes 6 Data Security Standards for Businesses.

New York Legislature, at the behest of its Attorney General, is strengthening its data security laws. 

Assembly Bill 6866 adds new data to protection requirements and increases penalties.

This bill creates these standards that establish compliance with the law for businesses:

  • a business that protects data more than the law requires
  • a business that complies with Gramm-Leach-Bliley Act
  • a business that meets international standards for information security
  • a business that complies with…

3 New Cyber Security Threats for Financial Types & Everyone

Morgan Stanley’s chief information officer of technology and risk information told the Securities Industry and Financial Markets Association’s annual conference that there are 3 new cyber security threats emerging:

  • ransomware- targets an entity, holds your systems hostage until a ransom is paid
  • malicious insiders- someone with valid apparently credentials that seeks to “expose” the entity
  • destructive malware which hits the energy sector more than financial sectors

Think Advisor | 3…