A metal cattle brand with the word brand as the marking areaThe “business case” for information governance often focuses solely on quantifying specific costs for data management and exposures for data security and ediscovery.  Number crunching is of course important, but it misses something bigger, more strategic, and ultimately more crucial to the organization – its brand.  Companies, regardless of industry, are fundamentally in the information business.  It follows that how an organization manages its information assets reveals how the organization manages itself.  And that matters, a lot, because companies that align themselves with their brand, achieving brand discipline, are more successful.

In their seminal 1993 Harvard Business Review article, Customer Intimacy and Other Value Disciplines, Michael Treacy and Fred Wiersema made the case for how highly successful companies (1) understand and redefine value for their customers, (2) build “powerful, cohesive business systems” to deliver more of that value than their competitors, and (3) raise their customers’ expectations beyond what the competition can deliver.  The most successful companies do this work within at least one of three disciplines: operational excellence, product leadership, or customer intimacy.

Treacy and Wiersema based their insights on an intensive study of 40 companies that achieved breakout success in their markets.  They followed the article with their quintessential business strategy book The Discipline of Market Leaders.  Twenty years later, this book is likely still on your CEO’s bookshelf.

What’s the point for information governance?  It’s this – a successful company brand cannot be lipstick on a pig.  It must be organic, a discipline that pervades the organization from the bottom to the top, inward and outward, in its core processes, business structure, management systems, and culture.  And how your organization manages information value, cost, compliance, and risk is no exception.  Simply put, stronger information governance yields a stronger brand for your business.  And this is true for each of the three disciplines of highly successful companies: Continue Reading Why govern our information? Reason #8: It can build – or bust – your brand

One Bullet in Gun BarrelHaving too much data causes problems beyond needless storage costs, workplace inefficiencies, and uncontrolled litigation expenses.  Keeping data without a legal or business reason also exacerbates data security exposures.  To put it bluntly, businesses that tolerate troves of unnecessary data are playing cybersecurity roulette … with even larger caliber ammunition.

Surprisingly few U.S. data security laws and standards expressly require that protected data be compliantly disposed of once legal and business-driven retention periods expire.   PCI DSS v3.2.1, Requirement 3.1, provides “[k]eep cardholder data storage to a minimum by implementing data retention and disposal policies ….”  HIPAA regulations  mandate that business associate agreements require service providers, upon contract termination, to return or destroy all PHI received or created on the covered entity’s behalf, if feasible.  Alabama and Colorado require that records containing state-level PII be disposed of when such records are no longer needed.  And biometric data privacy laws in Illinois, Texas, and Washington generally require that biometric data be disposed of once it has served its authorized purpose.

Instead, most such laws and standards focus on securely sanitizing or destroying storage media.  For example, the NIST Cybersecurity Framework v. 1.1 includes as a security control (PR.IP-6) that “[d]ata is destroyed according to policy,” and ISO 27002 (§ 8.3.2) provides that “[m]edia should be disposed of securely when no longer required, using formal procedures.”

But data security is not achieved by simply running through a checklist of explicit compliance requirements – it instead requires assessing risks and establishing effective security controls.  And one of the most powerful security controls is to not keep too much data, for too long. Continue Reading Why govern our information? Reason #9: Unnecessary business data multiplies data security exposures

Hands pointing towards businessman holding head in hands Being a CISO is a tough gig.  The perpetual deluge of news items on hack after hack, breach after breach, has finally conveyed that data security is an imperative for all companies, large and small.  But the perception still lingers that the Chief Information Security Officer (or her InfoSec team) will single-handedly prevent breaches at “our” company – and if one should occur, will take care of the response.  For some CISOs, it may feel like High Noon, all over again.

This is unfair to the CISO, and wrong on at least two counts.  First, regardless of the CISO’s job description, the full range of cyber risk exceeds the scope of the CISO’s practical control.  Second, effective breach response requires up to ten channels of coordinated activity, and nine of the ten fall outside of the CISO’s authority. Continue Reading Why govern our information? Reason #10: It’s a when, not if, world for data breaches

Depressed employee with laptopMost people have elevated stress during the holiday season — work, travel, family, money, time.  And holiday stress can make people inattentive, tired, frustrated, and willing to take short cuts, especially when it comes to computer and Internet use.  This is when mistakes happen.  It’s when we decide to evade policy by emailing work home or by using the unsecured airport Wi-Fi because our plane is delayed.  It’s also when malicious acts of information theft, sabotage, and fraud can more easily occur and go undetected.

According to a recent survey, insider threats — as opposed to outside actors — can account for nearly 75% of cyber incidents.  These incidents occur because of the actions of employees, suppliers, customers, and previous employees.  Law firms are not exempt, particularly small to medium size firms.  In fact, smaller firms typically have fewer resources to devote to cybersecurity and use more outside suppliers.

End-of-year activities for law firms also make them especially vulnerable to insider threats, whether inadvertent or malicious: the push to bill and collect for more hours, time-sensitive legal matters that must be resolved before the end of the calendar year, attending to year-end tax accounting, case and client review, bonus calculations.  Lawyers and their staff feel the strain of extra hours, looming deadlines, and sometimes contentious clients at the same time we all feel holiday pressures at home.

What is at risk? Continue Reading Law firm insider threats don’t take a break for the holidays — they may get worse.

Fish tempted by fishing hookAs technical security improves, human security vulnerabilities are increasingly in the bulls-eye.  For a fresh look at social engineering, and how best to defend against it, there’s no better source than a hacker.  So, I reached out to Cliff Smith, Ethical Hacker & CISSP at Parameter Security, for his take on the current social engineering battleground.  Here’s what he shared:

Confidence games have been around forever.  Is there anything fundamentally different about social engineering practiced by hackers?

Modern social engineering is no different than the classic con games.  They all run on information, trust, and emotions.  The biggest change in the past 20 years or so is that technology makes the attacker’s job much easier, for several reasons.  First, a skilled practitioner can use countless tactics to make their first contact appear more legitimate, such as spoofing a message’s source or creating a legitimate-looking website.  Second, the average user operates on autopilot much of the time when using their phones or computers.  It’s so easy, for example, to click on a link without stopping to think about the danger, which makes phishing attacks much more likely to succeed.  Third, technology makes the consequences of social engineering much more dire.  In just a few clicks, you can accidentally ruin your financial life, or someone else’s.

It’s commonly understood that phishing is a problem, and that phishing is a deceptive email with a malicious link.  Is it that simple, or are there other social engineering attacks to be concerned about? Continue Reading If you teach a man to phish …

Last Piece of PuzzleWhew – we’ve survived yet another round of states enacting or amending their PII breach notification laws.  If a trial lawyer’s vacation is the time between her question and the witness’s answer, a data security lawyer’s vacation is when state legislatures are out of session.

Back in 2002, California enacted the first state law mandating notification of individuals whose personally identifiable information (PII) is breached.  Now every state has followed suit, with the final two holdouts, Alabama and South Dakota, joining the other forty-eight states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands by enacting PII breach notification statutes.  Each state has its own unique approach, and the states continue to expand their requirements, especially their definitions of what constitutes PII and the timing and content of mandated notifications.

These laws are triggered by the affected individuals’ residency, not where the breach occurred. So, when an organization with employees or customers in many states suffers a data breach, it must comply with a wide variety of conflicting and evolving state breach notification laws. And differ and evolve they do: Continue Reading With PII breach notification statutes, the rules keep changing

Empty SafeLast week’s post explored why law firms need data security policies.  Before we move on, I’d be remiss if I didn’t mention another policy that’s absolutely crucial for the law firm’s data security posture – a records management policy, coupled with an up-to-date and legally validated records retention schedule.

What does a records retention schedule have to do with data security?  Simply this – keeping data without a legal or business reason exacerbates data security exposures.

Breached systems frequently contain many times more data than was needed for retention compliance or any valid business or operational purpose.  This unnecessary data multiplies the number of those whose confidential or protected information is compromised, and can also have exponential impact once breached, passing a tipping point on lasting reputational damage or on the economic viability of claims against the firm.

It’s not possible for a breach to compromise the security of information that no longer exists, having already been compliantly disposed of once its legally required retention and business value have expired.

But surely most every law firm has a records retention schedule in place for its records of client matters and firm administration, right?  Actually, far too few firms do. Continue Reading Law firm data retention – they can’t hack what you no longer have

Bare feet of muddy childrenYou’d think, among all types of businesses, that law firms would be at the front of the pack in having a data security policy.  After all, law firms regularly tell their clients how important it is to have effective policies in place for legal compliance and risk management.  And law firms certainly possess large volumes of valuable data, such as confidential client information and individual’s personal data, and are subject to a daunting array of security threats.  But as the saying goes, all too often the cobbler’s kids have no shoes.

How shoeless?  Results from the  2017 ABA Legal Technology Survey are grim.  Less than half of the responding law firms have the following policies and plans, which are crucial to a firm’s security posture:

  • computer acceptable use policy (48%);
  • remote access policy (45%);
  • disaster recovery/business continuity plan (42%)
  • incident response plan (26%); and
  • personal technology use/BYOD policy (24%).

This is astounding, especially given the compelling reasons for law firms to put data security policies in place.

Continue Reading Law firms, data security policies, and cobblers’ kids

Ignorant DoctorIf you had a choice between doctors to perform surgery on you, which would you pick:  a doctor who has sat through training on how to perform an appendectomy; or assurance that your doctor will successfully perform your appendectomy?

The answer seems obvious, but on the topic of dealing effectively with human vulnerabilities in cybersecurity, most of us seem satisfied with “awareness training.”  It’s a check-the-box response to regulatory compliance or client demands.   Sign everyone up for an on-line phishing exercise and you’re done.  Yet the consequences of ineffective training can be dire.  You will most certainly lose productivity, you’ll probably lose money, and you may lose the company.

This is not to say that awareness is unimportant.  But raising awareness is just the first step in effective cybersecurity defense.  Employees—and management—must come to understand why and how security incidents occur and learn how to recognize and guard against them.  In other words, you must develop assurance that everyone in your organization is equipped to protect the company and its assets. Continue Reading How to gain assurance against human security vulnerabilities

Hacker at work with Russian flag on backgroundThe indictment filed last Friday by Special Counsel Robert Mueller explains how Russian military intelligence officers hacked into computer systems of the DNC, the DCCC, and Clinton Campaign employees during the 2016 presidential race.  With sweeping, specific details that have compelled unanimous confidence among Americans (except apparently our President), the 29-page indictment is a textbook on sources and methods.  No, not intelligence-gathering sources and methods, which are of course highly classified.  Instead, the indictment catalogs the sources of data that were stolen, and the methods used by the GRU intelligence units to methodically hack into the targeted systems, exfiltrate the data, evade detection, and weaponize the data through publications timed to inflict maximum impact.

The lessons to be learned from the indictment’s allegations, summarized below, are useful to any organization serious about data security and prevention, detection, and response to hacking, whether state-sponsored or otherwise.

Continue Reading The latest Mueller indictment – what we all can learn about sources and methods