7 Steps to Secure Profitable Business Data (Part I)

Everybody wants your data. Why? Because it’s profitable, it’s relatively easy to access and the resulting crime is almost impossible to trace. Take, for example, Sony PlayStation Network, Citigroup, Epsilon, RSA, Lockheed and several other businesses that have watched helplessly in the past months as more than 100 million customer records have been breached, ringing up billions in recovery costs and reputation damage. You have so much to lose.

To scammers, your employees’ Facebook profiles are like a user’s manual about how to manipulate their trust and steal your intellectual property. To competitors, your business is one poorly secured smartphone from handing over the recipe to your secret sauce. And to the data spies sitting near you at Starbucks, you are one unencrypted wireless connection away from wishing you had taken the steps in this two-part article.

Every business is under assault by forces that want access to customer databases, employee records, intellectual property, and ultimately, your bottom line. Research is screaming at us—more than 80% of businesses surveyed have already experienced at least one breach and have no idea of how to stop a repeat performance. Combine this with the average cost to repair data loss, a stunning $7.2 million per incident (both statistics according to the Ponemon Institute), and you have a profit-driven mandate to change the way you protect information inside of your organization. “But the risk inside of my business,” you say, “would be no where near that costly.” Let’s do the math.

A Quick and Dirty Way to Calculate Your Business’s Data Risk

Here is a quick ROI formula for your risk: Add up the total number of customer, employee and vendor database records you collect that contain any of the following pieces of information – name, address, email, credit card number, SSN, Tax ID Number, phone number, address, PIN – and multiply that number by $250 (a conservative average of the per record cost of lost data). So, if you have identifying information on 10,000 individuals, your out-of-pocket expenses (breach recovery, notification, lawsuits, etc.) are estimated at $2.5 million even if you don’t lose a SSN or TIN. And that cost doesn’t necessarily factor in the public relations and stock value damage done when you make headlines in the papers.

In an economy where you already stretch every resource to the limit, you need to do more with less. Certain solutions have a higher return on investment. Start with these 7 Steps to Secure Profitable Business Data.

  1. Start with the humans. One of the costliest data security mistakes I see companies make is to only approach data privacy from the perspective of the company. But this ignores a crucial reality: All privacy is personal. In other words, no one in your organization will care about data security, privacy policies, intellectual property protection or data breach until they understand what it has to do with them.Strategy: Give your people the tools to protect themselves personally from identity theft. In addition to showing them that you care (a good employee retention strategy), you are developing a privacy language and framework that can be easily adapted to business. Once your people understand opting out, encryption and identity monitoring from a personal standpoint, it’s a short leap to apply that to your customer databases, physical documents and intellectual property. Start with the personal and expand into the professional. It’s like allowing people to put on their own oxygen masks before taking responsibility for those next to them. For an example of how the Department of Homeland Security applied this strategy, take a look at the short video.
  2. Immunize against social engineering. The root cause of most data loss is not technology; it’s a human being who makes a costly miscalculation out of fear, obligation, confusion, bribery or sense of urgency. Social engineering is the craft of manipulating information out of humans by pushing buttons that elicit automatic responses. Data thieves push these buttons for highly profitable ends, including spear-phishing, social networking fraud, unauthorized building access, and computer hacking.Strategy: Immunize your workforce against social engineering. First, when asked for information, they should immediately apply a healthy dose of professional skepticism. Train them to automatically assume that the requestor is a spy of some sort. Second, teach them to take control of the situation. If they didn’t initiate the transfer of information (e.g., someone official approaches them for login credentials), have them stop and think before they share. Finally, during this moment of hesitation, empower them to ask a series of aggressive questions aimed at exposing fraud. When we do this type of training, whether it is for the Department of Defense, a Fortune 50 or a small business, the techniques are the same. You have to make a game out of it, make it interesting, interactive and fun. That’s how people learn. For an example of fraud training in action, visit www.Sileo.com/fun-fraud.

You will notice that the first 2 Steps have nothing to do with technology or what you might traditionally associate with data security. They have everything to do with human behavior. Failing to begin with human factor, with core motivations and risky habits, will almost certainly guarantee that your privacy initiatives will fail. You can’t simply force a regime of privacy on your company. You need to build a coalition; you need to instill a culture of privacy, one security brick at a time.

Once you have acknowledged the supreme importance of obtaining buy-in from your employees and training them as people first, data handlers second, then you can move on to the next 5 Steps to Secure Profitable Business Data.

John Sileo, the award-winning author of Privacy Means Profit, delivers keynote speeches on identity theft, data security, social media exposure and weapons of influence. His clients include the Department of Defense, Pfizer, Homeland Security, Blue Cross, the FDIC and hundreds of corporations, organizations and associations of all sizes. Learn more at www.ThinkLikeASpy.com.


Posted by Identity Theft Speaker in Burning Questions (Video), Cyber Data Security, Fraud Detection & Prevention, Identity Theft Prevention, Online Privacy, Video Tips and tagged , , , , , , , , , , , , , , .

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