Compliance
CCPA FAQs: Your Guide to California’s New Privacy Law
08 November 2020
The California Consumer Privacy Act (CCPA) is now in force, and those that fail to comply are open to civil penalties and private lawsuits.  But, many business, security, and compliance leaders are still scratching their heads, wondering how the CCPA will affect them, how to stay compliant, and what consequences they face in the event of a data breach. We’re here to help. We’ve answered some of the key questions businesses are asking about, from the scope of the CCPA to violations under this strict data privacy law.  Important Note: The California Privacy Rights Act (CPRA) – also known as Proposition 24 – passed on November 3, 2020. The CPRA amends the CCPA, taking away some of the ambiguity and pushing the state statute closer to the GDPR. The CPRA: Gives consumers the right to opt out of sharing their data. That means publishers will be required to display “prominently and conspicuously” on their homepages a “Do Not Sell or Share My Personal Information” link. Enforces a general purpose limitation on personal information use, limiting a business’s use and sharing of personal information to the purposes for which it was collected. Remember, consumers must be informed about how their data will be use before it is collected. Creates an agency to enforce compliance and dish out fines. The new regulatory body – California Privacy Protection Agency – has dedicated resources and the power to determine whether or not a violation was intentional or not. While – yes- the CCPA already contains similar notice requirements with respect to the purposes for which personal information will be processed, the CPRA offers California regulators additional enforcement options. What does this mean for you? Organizations must ensure compliance with the CPPA,  integrating the demands of the CPRA. The CPRA is set to take effect on January 1, 2023, but will apply to data collected from January 1, 2022.
Scope of the CCPA Who is covered by the CCPA? The CCPA covers several types of entities, primarily “businesses.” If your company qualifies as a business, it needs to comply with the CCPA. A business can be any legal entity that operates for profit in California and meets one or more of the CCPA’s three thresholds: It has annual gross revenues in excess of $25 million It annually buys, sells, or shares for commercial purposes, the personal information of 50,000 or more California consumers, households, or devices  It earns 50 percent or more of its annual revenues from selling consumers’ personal information Does the CCPA only apply to big businesses? At first glance, the thresholds above may appear to only apply to large corporations, social media companies, and “data brokers.”  But the truth is, many companies with targeted advertising campaigns may meet the requirements of threshold “B.” This is because using third-party cookies is likely to constitute “selling personal information. (More information below. Click here to jump ahead.)  Therefore, a company is likely to be covered by the CCPA if its website or mobile app: Uses third-party advertising or analytics cookies (or similar technologies), and Generates at least 50,000 unique hits originating in California per year.
Does the CCPA cover non-Californian companies? It doesn’t matter if your business is based in Los Angeles, London, or Lahore. The determining factors are whether you collect the personal information of California residents (“consumers”), and whether you meet one or more of the three thresholds above. Does your business collect the personal information of California residents? It does if they:  Visit your website (assuming you use web analytics or cookies to measure engagement or track visitors) Sign up to your newsletter Make an enquiry about your services That means that if you have a website that attracts visitors from around the world, chances are you’re obligated to satisfy the CCPA.  What is “Personal Information” under the CCPA? The CCPA defines “personal information” as: “…information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.” It’s worth mentioning that this is arguably the broadest definition of “personal information” under any privacy law in the world. Nonetheless, the CCPA provides examples of the types of data that might qualify as personal information.  While this list is not exhaustive, it includes: Name Email address IP address Cookie data Device ID Biometric data Geolocation data It’s very common for a business to collect these types of information every time a person visits its website or uses its app. And, it’s also impossible to do business with a consumer without collecting at least some of this information.  Think about it. When you buy something on an e-commerce website, what information do you provide? What is a “Service Provider” under the CCPA? A service provider is a legal entity that processes personal information on behalf of a business.  For example, a marketing company receives a list of email addresses from a business and sends out its newsletter. The marketing company doesn’t have a direct interest in the end result of this activity — it simply obeys the instructions of the business. A service provider must also operate under a contract with the business from whom it receives personal information. This contract must prohibit the service provider from retaining, using, or disclosing the personal information for any purpose outside of the contract. In layman’s terms: Service providers are not directly liable for most CCPA obligations. But, if a service provider’s negligence or wrongdoing leads to a data breach, it can be sued by the client.  Service providers can also receive civil penalties (more on that here) in certain circumstances. Unfortunately, it’s not clear yet what these “certain circumstances” are. As and when we have more context, we’ll update this blog! Violating the CCPA What is the CCPA’s Private Right of Action? Under the CCPA’s private right of action, a consumer — or group of consumers — can bring a legal claim against a business that fails to secure certain types of their personal information and suffers a data breach. (You can read more about what types of PI in this blog.) But, what happens if a consumer does pursue this private right of action? It can lead to: Statutory damages — an amount of money paid to each consumer, determined by the court, depending on the seriousness of the breach (among other factors). Statutory damages fall between $100 and $750 per consumer, per incident. Actual damages —  an amount of money paid to each consumer, based on what they have actually lost as the result of a breach. In the event of large-scale data breaches involving millions of consumers, damages could add up to billions of dollars. We’ve yet to see any legal claims completed under the CCPA. However, what if the CCPA had been in force throughout Facebook’s “Cambridge Analytica” scandal? Privacy lawyer Nicholas Schmidt estimates that the damage could have been between $61.6 billion and $184.7 billion. What are the CCPA’s civil penalties? The California Attorney General can issue civil penalties to businesses or service providers that violate any part of the CCPA. The CCPA’s civil penalties can be for an amount of: Up to $7,500 per intentional violation, such as knowingly selling personal information where a consumer has opted out. Up to $2,500 per unintentional violation, such as failing to impose reasonable security measures leading to a data breach.  Note: This is why it’s so important organization’s have strong security policies, procedures, and solutions in place. Reducing risk by improving your security posture is key. Tessian helps prevent data exfiltration and accidental data loss. Our solutions also help security leaders proactively protect their systems and data through automated intelligence and robust investigation and remediation tools. Learn more. The California Attorney-General must give a business 30 days’ notice of its alleged CCPA violation. If the business can “cure” the violation within this period, it can escape a penalty. While it’s not clear how a business can “cure” a CCPA violation, examples may include imposing security measures to “stem” a data breach or successfully retrieving personal information that has been exfiltrated. Privacy regulators are increasingly imposing harsh penalties on big tech companies. The CCPA takes clear inspiration from the EU General Data Protection Regulation (GDPR), which has seen the following large fines: €50 million (Google, France) €27.8 million (TIM telecommunications company, Italy) €204.6 million (British Airways, UK — not yet enforced)
CCPA Data Security Requirements What counts as a data breach under the CCPA? The CCPA defines a data breach as: “…unauthorized access and exfiltration, theft, or disclosure as a result of the business’ violation of the duty to implement and maintain reasonable security procedures and practices appropriate to the nature of the information to protect the personal information” Here are the key elements of this definition: Unauthorized access Exfiltration Theft Disclosure A failure to “maintain reasonable security procedures and practices” Remember that a data breach can be intentional or unintentional and it can originate from a person inside or outside of your business. Read more about Insider Threats on our blog. According to the most recent California Data Breach Report, misdirected emails (emails sent to the wrong recipient) were the leading cause of data breaches. !function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script"),d=o[0],r=/^http:/.test(e.location)?"http:":"https:";if(/^\/{2}/.test(i)&&(i=r+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var a=e.createElement("script");a.async=1,a.id=s,a.src=i,d.parentNode.insertBefore(a,d)}}(document,0,"infogram-async","//e.infogram.com/js/dist/embed-loader-min.js");
In the UK, misdirected emails were also the most common cause of data breach in quarter 4 of 2019-20, according to the UK Information Commissioner’s Office (ICO). As we’ve said, the CCPA requires a proactive approach to maintaining data security. Read about how Tessian can help CCPA compliance below or learn more about Tessian Guardian, which detects and prevents misdirected emails before they happen. What is “reasonable security” under the CCPA? The CCPA doesn’t define “reasonable security procedures and practices.”  However, in the most recent California Data Breach Report, the California Attorney-General clearly states that meeting the 20 Critical Security Controls from the Center for Internet Security (CIS) represents a minimum reasonable level of security.
The CIS Critical Security Controls include: Email and web browser protection Malware protection Application software security It’s worth noting that email is the threat vector most security leaders are worried about protecting. Find out why.  CCPA Consumer Rights What are the CCPA Consumer Rights? The CCPA’s consumer rights are: The right to know — consumers may request information about the types of information a business has collected, used, and shared about them over the past 12 months. They may also request copies of the specific pieces of information that the business holds about them. The right to delete — consumers may request that a business deletes the personal information it holds about them. The right to opt out — consumers may instruct a business not to sell their personal information The right to non-discrimination — businesses may not offer a lesser quality of goods or services or demand a higher price for goods or services if a consumer exercises their CCPA rights. The right to opt in (for minors) — businesses must obtain opt-in consent before selling the personal information of minors under the age of 16. They must obtain parental consent before selling the personal information of minors under the age of 13. In upholding these consumer rights, businesses have an obligation to provide individuals certain types of notice. More on that below.  What are the CCPA’s notice requirements? Under the CCPA, businesses must provide up to four types of notice to consumers: Privacy Policy — details which categories of personal information the business has collected, used, disclosed, and sold over the past 12 months. Every businesses must include a clear and prominent link to its Privacy Policy on its website and/or app. Notice at collection — provided at the point at which the business collects personal information from a consumer. This could appear, for example, as a disclaimer at the top of a sign-up form, informing consumers about what personal information the business is collecting and why. Notice of the right to opt-out — enables consumers to opt out of the sale of their personal information (where applicable). This must include a prominent link on a business’s homepage reading “Do Not Sell My Personal Information.” It might also take the form of a “cookie banner” enabling consumers to opt out of personalized advertising. Notice of financial incentives — informs consumers about any financial incentives offered for the processing of their personal information (where applicable). This can appear as a disclaimer when consumers are invited to sign up to certain types of “loyalty schemes.” What counts as “selling” Personal Information under the CCPA? The CCPA defines “selling” personal information as: “…selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumer’s personal information by the business to another business or a third party for monetary or other valuable consideration.” There is a lot of debate about what this means for businesses. Virtually any transfer of personal information that benefits your company could constitute a “sale.”  And, because of the very broad phrasing, this definition is likely to include the use of third-party cookies, which involve “transferring” “personal information” (such as IP addresses and device IDs) to “a third party” for “valuable consideration.” Don’t worry, there are several approaches to transferring Personal Information without “selling” it, including engaging a service provider when disclosing personal information for business purposes. How can Tessian help with CCPA compliance? While some parts of the CCPA are still open to debate, we know the following facts for certain: Data breaches will leave CCPA-covered businesses open to significant risks of private litigation and civil penalties. Failure to implement reasonable security procedures and practices will: Increase the likelihood of a data breach occurring, and Lead to more substantial fines and more serious legal claims. As one of the CIS Critical Security Controls, “email protection” is one of the minimum requirements for “reasonable security.” Tessian’s Human Layer Security solutions can fulfill a crucial element of your company’s duty to maintain reasonable security procedures and practices. Tessian Guardian — prevents your employees from emailing personal or sensitive company information to the wrong person. Tessian Enforcer — prevents the exfiltration of company data to unauthorized recipients. Tessian Defender — detects and prevents inbound “spear-phishing” attacks designed to trick your employees into divulging personal information. Learn more about Tessian’s solutions by booking a demo. 
Compliance
6 Reasons to Download The CEO’s Guide to Data Protection and Compliance
By Maddie Rosenthal
29 October 2020
Over the last several months, Tessian has published a ton of articles related to data compliance, the business value of cybersecurity, and the importance of executive buy-in when it comes to security strategies.  We’ve combined all of that information to create our latest eBook: CEO’s Guide to Data Protection and Compliance.  We know what you’re thinking. A guide for CEOs? Why? Let us explain by telling you why you should download it.  1. We explain why business leaders should care about cybersecurity While we don’t want to fear monger, it’s important to know that, according to Gartner, CEOs will be held personally liable for data breaches by 2024. But that’s not the only reason why business leaders should care about cybersecurity. They should care because cybersecurity can actually be a business enabler and competitive differentiator. More on this in point six.  2. We offer resources that will help bridge the gap between security and commercial teams Cybersecurity is a team sport and in order for strategies to be truly effective, the C-suite has to be on board. But, communicating risk, opportunity, and cybersecurity ROI can be tough….especially when – in most organizations – CISOs don’t have a seat at the table. We created this eBook to mitigate that disconnect. We considered both the CEOs and the CISOs perspective, avoided the “curse of knowledge”, and provided dozens of resources that will help security and commercial teams communicate better. Like what? A checklist for ensuring compliance A detailed breakdown of the steps organizations must take post-breach A shareable infographic of relevant statistics An industry-specific “worksheet” to help you understand the cost of a breach A list of the biggest breaches (and fines) under the GDPR, CCPA, HIPAA, GLBA, and PCI DSS Over 15 additional resources to help answer your questions  3. We share a high-level overview of 25 compliance standards While the GDPR and HIPAA tend to make headlines, there are actually dozens of regional and industry-specific data privacy regulations that you may be obligated to satisfy. Not sure where to start? We offer a high-level overview of 25 different compliance standards and explain who must comply and what data is protected.  4. We break down five compliance standards (in layman’s terms) While the high-level overview mentioned above will help business (and security!) leaders understand the broader compliance landscape, we wanted to double-click on a few. In the eBook we answer the following eight questions about GDPR, CCPA, HIPAA, GLBA, and PCI DSS: What is it? Who enforces it? When was it enacted? Who is obligated to comply? What are the penalties for non-compliance? What data is protected? What are the data requirements? What have been the biggest breaches? 5. We highlight the biggest breaches in recent history and how they could have been avoided As they say “history is a great teacher”. So, to help CEOs and CISOs understand potential vulnerabilities, the consequences of breaches, and how to prevent them, we outline the three biggest breaches (and fines) for each compliance standard.  Note: While – yes – some of this information is easy to find with a simple Google search, other information has been pulled from case dockets and breach notifications. That means we’ve done the heavy lifting for you.  6. We list the benefits of compliance from a business perspective This is what CEOs care about. Business value. Revenue drivers. And, while cybersecurity has historically not been viewed as a business enabler, this eBook proves that it is. We list 4 clear benefits of compliance beyond avoiding fines and explain how strong cybersecurity can help you build (and maintain) customer trust, attract investment, and help you streamline business operations.  Ready to learn more? Download the eBook and toolkit now.
Compliance DLP
11 Biggest GDPR Fines of 2020 (So Far)
15 October 2020
Since the GDPR (General Data Protection Regulation) was introduced in 2018, countless organizations have made headlines for violations. British Airways, Marriot International Hotels, Austrian Post…but what about this year?  Keep reading to find out how many fines have been handed out in 2020, which organizations have been slapped with the biggest fines, why, and how the violation could have been prevented.  Key findings include: Google received the biggest fine so far in 2020 – €50 million ($56.6 million) Over 220 fines have been handed out for GDPR violations in the first ten months of 2020 The total amount of fines issued so far in 2020 exceeds €175 million Between 2018 and 2019, the average number of fines issues per month increased by 260% July 2020 saw the highest number of fines issued in a single month since the GDPR was introduced – a total of 45 Only 20% of US, UK, and EU companies are fully GDPR compliant Misdirected emails have been the primary cause of data loss reported to the Information Commissioner’s Office (ICO)
More and more GDPR fines are being issued  As of October 2020, over 220 fines have been handed out for GDPR violations. Based on trends from the last 24 months, we can expect this number to continue rising.  Between July 2018 and June 2019, an average of 5 fines were handed out each month. But, between July 2019 and June 2020, an average of 18 fines were handed each month. That’s a 260% increase. And, with 45 fines issued for non-compliance in October 2020 alone, it’s clear that the EU authorities take information security and compliance very seriously. But, do organizations? Maybe not… Research suggests that only 20% of US, UK, and EU companies are fully GDPR compliant and – worse still – a whopping 30% of companies have yet to even start their GDPR compliance initiatives. Ensuring compliance is key, though, especially when organizations can be fined up to €20 million (just short of $23 million) or 4% of annual global turnover (whichever is larger) for a violation. The biggest GDPR fines of 2020 so far With two months to go, we have already seen fines that shatter records set in previous years. Here are the biggest GDPR fines of 2020 so far: 1. Google – €50 million ($56.6 million)  Although Google’s fine is technically from last year, the company lodged an appeal against it. Last month, however, judges at France’s top court for administrative law dismissed Google’s appeal and upheld the eye-watering penalty.  Google was hit with this GDPR fine – the largest one to date – for multiple infractions under Articles 5, 6, 13, and 14. While each violation is slightly different, the long and short of it is that Google wasn’t transparent in divulging how they harvested and used data for ad targeting.  How the violation(s) could have been avoided: Google should have provided more information to users in consent policies and should have granted them more control over how their personal data is processed. 2. H&M — €35 million ($41 million) On October 5, the Data Protection Authority of Hamburg, Germany, fined clothing retailer H&M €35,258,707.95 — the second-largest GDPR fine ever imposed. H&M’s GDPR violations involved the “monitoring of several hundred employees.” After employees took vacation or sick leave, they were required to attend a return-to-work meeting. Some of these meetings were recorded and accessible to over 50 H&M managers. Senior H&M staff gained ”a broad knowledge of their employees’ private lives… ranging from rather harmless details to family issues and religious beliefs.” This “detailed profile” was used to help evaluate employees’ performance and make decisions about their employment. How the violation(s) could have been avoided: Details of the decision haven’t been published, but the seriousness of H&M’s violation is clear. H&M appears to have violated the GDPR’s principle of data minimization — don’t process personal information, particularly sensitive data about people’s health and beliefs, unless you need to for a specific purpose. H&M should also have placed strict access controls on the data, and the company should not have used this data to make decisions about people’s employment. 3. TIM – €27.8 million ($31.5 million) Just two weeks into the new year on January 15, Italian telecommunications operator TIM (or Telecom Italia) was stung with a €27.8 million GDPR fine from Garante, the Italian Data Protection Authority, for a series of infractions and violations that have accumulated over the last several years.  TIM’s infractions include a variety of unlawful actions, most of which stem from an overly-aggressive marketing strategy. Millions of individuals were bombarded with promotional calls and unsolicited communications, some of whom were on non-contact and exclusion lists.   How the violation(s) could have been avoided: TIM should have managed lists of data subjects more carefully and created specific opt-ins for different marketing activities.   4. British Airways – €22 million ($26 million) In October, the ICO hit British Airways with a $26 million fine for a breach that took place in 2018. This is considerably less than $238 million dollar fine that the ICO originally said it intended to issue back in 2019.  So, what happened back in 2018? British Airway’s systems were compromised. The breach affected 400,000 customers and hackers got their hands on log in details, payment card information, and PI like travellers’ names and addresses.   How the violation(s) could have been avoided: According to the ICO, the attack was preventable, but BA didn’t have sufficient security measures in place to protect their systems, networks, and data. In fact, they didn’t even have basics like multi-factor authentication in place at the time of the breach. Going forward, the airline should take a data-first security approach, invest in security solutions, and ensure they have strict data privacy policies and procedures in place. 5. Marriott – €20.4 million ($23.8 million) While this is an eye-watering fine, it’s actually significantly lower than the $123 million fine the ICO originally said they’d levy. So, what happened? 383 million guest records (30 million EU residents) were exposed after the hotel chain’s guest reservation database was compromised. PI like guests’ names, addresses, passport numbers, and payment card information was exposed.  Note: The hack originated in Starwood Group’s reservation system in 2014. While Marriott acquired Starwood in 2016, the hack wasn’t detected until September 2018. How the violation(s) could have been avoided: The ICO found that Marriott failed to perform adequate due diligence after acquiring Starwood. They should have done more to safeguard their systemswith a stronger data loss prevention (DLP) strategyand utilized de-identification methods.  6. Wind — €17 million ($20 million) On July 13, Italian Data Protection Authority imposed a fine of €16,729,600 on telecoms company Wind due to its unlawful direct marketing activities. The enforcement action started after Italy’s regulator received complaints about Wind Tre’s marketing communications. Wind reportedly spammed Italians with ads — without their consent — and provided incorrect contact details, leaving consumers unable to unsubscribe. The regulator also found that Wind’s mobile apps forced users to agree to direct marketing and location tracking and that its business partners had undertaken illegal data-collection activities.  How the violation(s) could have been avoided:Wind should have established a valid lawful basis before using people’s contact details for direct marketing purposes. This probably would have meant getting consumers’ consent — unless it could  demonstrate that sending marketing materials was in its “legitimate interests.” For whatever reason you send direct marketing, you must ensure that consumers have an easy way to unsubscribe. And you must always ensure that your company’s Privacy Policy is accurate and up-to-date. 7. Google – €7 million ($7.9 million) It has not been a good year for Google. In March, the Swedish Data Protection Authority of Sweden (SDPA) fined Google for neglecting to remove a pair of search result listings under Europe’s “right to be forgotten” rules under the GDPR, which the SDPA ordered the company to do in 2017.  How the violation(s) could have been avoided: Google should have fulfilled the rights of data subjects, primarily their  right to be forgotten. This is also known as the right to erasure. How? By “ensuring a process was in place to respond to requests for erasure without undue delay and within one month of receipt.”  You can find more information about how to comply with requests for erasure from the ICO here.  8. AOK (Health Insurance) — €1.24 million ($1.5 million) On June 30, the Data Protection Authority of Baden-Wuerttemberg, Germany, imposed a €1.24 million fine on health insurance company Allgemeine Ortskrankenkasse (AOK).  AOK set up contests and lotteries using its customers’ personal information — including their health insurance details. The company also used this data for direct marketing. AOK tried to get consent for this, but it ended up marketing to some users who had not consented. The regulator found that the company had sent people marketing communications without establishing a lawful basis. AOK also failed to implement proper technical and organizational privacy safeguards to ensure they only sent marketing to those who consented. How the violation(s) could have been avoided: What’s the main takeaway from the AOK case? Be very careful when sending direct marketing. If you need people’s consent, make sure you keep adequate, up-to-date records of who has consented. 9. BKR (National Credit Register) — €830,000 ($973,000) On July 6, the Dutch Data Protection Authority fined the Bureau Krediet Registration (‘BKR’) €830,000 for charging individuals to access their personal information digitally. BKR allowed customers to access their personal information for free on paper, but only once per year. BKR is appealing the fine. How the violation(s) could have been avoided: BKR shouldn’t have been charging individuals to access their personal information, and they shouldn’t have been imposing a once-per-year limit. The GDPR is clear — you may only charge for access to personal information, or refuse access, if a person’s request is “manifestly unfounded or excessive.” 10. Iliad Italia — €800,000 ($976,000) On July 13, the Italian Data Protection Authority fined telecoms company Iliad Italia €800,000 for processing its users’ personal information unlawfully in numerous ways. One issue was Iliad’s collection of consent for its marketing activities, which the regulator found had been “bundled” with an acknowledgment of the company’s terms and conditions. Iliad also failed to store its users’ communications data securely. How the violation(s) could have been avoided: Consent under the GDPR is defined very narrowly. If you’re going to ask for a person’s consent, you must make it specific to a particular activity. Don’t “bundle” your consent requests — for example, by asking people to agree to marketing and sign a contract using one tickbox. Data security is one of the cornerstones of the GDPR. Iliad appears to have failed to implement proper access controls on its users’ personal information. You must ensure that personal information is only accessible on a “need to know” basis. 11. Unknown – €725,000 ($821,600) In April, the Dutch Data Protection Authority handed out its largest fine to date to a so-far unknown company for unlawfully using employees’ fingerprint scans for its attendance and timekeeping records. The violation took place over the course of 10 months. Note: Under the GDPR, biometric data like fingerprints are classified as sensitive personal data and it is subject to more stringent protections.  How the violation(s) could have been avoided: The company should have had a valid, lawful reason to collect employees’ fingerprints. They should have also had technical measures in place to process the data and a clear process for deleting the data. 
What else can organizations be fined for under GDPR?  While the biggest fines so far in 2020 involve marketing activities, failure to remove personal data when requested by EU citizens, and unlawfully requiring employees to have their biometric data recorded, there are a number of ways in which a breach can occur.  In fact, so far this year, misdirected emails have been the primary cause of data loss reported to the ICO. But, how do you prevent an accident? By focusing on people rather than systems and networks. How does Tessian help organizations stay GDPR compliant?
Powered by machine learning, Tessian’s Human Layer Security technology understands human behavior and relationships, enabling it to automatically detect and prevent anomalous and dangerous activity, including misdirected emails. Tessian also detects and prevents spear phishing attacks and data exfiltration attempts on email.  Importantly, though, Tessian doesn’t just prevent breaches. Tessian’s key features – which are both proactive and reactive – align with the GDPR requirement “to implement appropriate technical and organizational measures together with a process for regularly testing, assessing and evaluating the effectiveness of those measures to ensure the security of processing” (Article 32). To learn more about how Tessian helps with GDPR compliance, you can read our customer stories or book a demo. Or, for information about other data privacy legislation, check out our compliance hub. 
Compliance Data Exfiltration DLP
A Beginner’s Guide to Cybersecurity Frameworks
05 October 2020
As rates of cybersecurity incidents rise and data security laws become stricter, organizations must take steps to protect the information under its control. But safeguarding your company’s information can be a daunting task.  So, where do you start? You can start by implementing a cybersecurity framework. In this article, we’ll look at four of the most prevalent cybersecurity frameworks — to help you get started on your journey toward better information security.  But first, let’s define what a cybersecurity framework is. What is a cybersecurity framework?
What are the benefits of implementing a cybersecurity framework? Running a business is a time-consuming and complicated task and many business leaders – especially those without any background in cybersecurity – worry that implementing a cybersecurity framework will create extra work. And, while it does take time and effort to follow a cybersecurity framework through to completion, it’s almost certainly going to save you time, stress — and money — in the long-term. Here’s how: It will strengthen your network protection, reducing your risk of a cybersecurity attack. It will help ensure better data security practices among staff, reducing the risk of accidental data loss, such as via misdirected email. It increases awareness of cybersecurity among staff, leading to a reduced risk from social engineering attacks. It improves your reputation among consumers and business partners. Implementing a cybersecurity framework is also a fundamental way of meeting your legal obligations under data privacy laws, such as:  The EU General Data Protection Regulation (GDPR)  The California Consumer Privacy Act (CCPA) The South Africa Protection of Personal Information Act (POPIA)  Under these laws — and many others worldwide — it is necessary for businesses to maintain a reasonable level of data security. Implementing a cybersecurity framework is an excellent way to achieve this. Looking for more information about regional and industry-specific data protection laws? Visit our compliance content hub. 
What sorts of organizations should implement a cybersecurity framework? Implementing a cybersecurity framework is mandatory in some industries. For example, organizations that handle cardholder data must comply with the PCI DSS framework. However, a business of virtually any size — and in any industry — can adopt a cybersecurity framework at relatively low cost.  One way that a small business can achieve cybersecurity compliance is by choosing a flexible framework —  such as the CIS Controls or NIST Cybersecurity Framework, and prioritizing the implementation of controls according to its business needs and operating context. Now, let’s look at four of the best-known cybersecurity frameworks.
Introduction to CIS Controls The Center for Internet Security (CIS) Controls framework can help you mitigate and defend against the most basic cyberattacks.  Here are the 20 CIS Controls: Basic CIS Controls Inventory and Control of Hardware Assets Inventory and Control of Software Assets Continuous Vulnerability Management Controlled Use of Administrative Privileges Secure Configuration for Hardware and Software on Mobile Devices, Laptops, Workstations, and Servers Maintenance, Monitoring, and Analysis of Audit Logs Foundational CIS Controls Email and Web Browser Protections Malware Defenses Limitation and Control of Network Ports, Protocols, and Services Data Recovery Capabilities Secure Configuration for Network Devices, such as Firewalls, Routers, and Switches Boundary Defense Data Protection Controlled Access Based on the Need to Know Wireless Access Control Account Monitoring and Control Organizational CIS Controls Implement a Security Awareness and Training Program Application Software Security Incident Response and Management Penetration Tests and Red Team Exercises
CIS Control 13: Data Protection  To give you an idea of what the CIS controls require, we’ll take a closer look at Control 13: Data Protection. CIS Control 13 provides some practical steps to help you protect data from exfiltration and cyberattacks. At its core, Control 13 requires organizations to: Use a combination of encryption, integrity protection, and data loss prevention (DLP) methods to ensure the security of data Limit and report on data exfiltration attempts Mitigate the effects of data compromise Control 13 contains nine sub-controls. Some of these are achievable for businesses of all sizes, such as: 13.1: Maintain an Inventory of Sensitive Information 13.2: Remove Sensitive Data or Systems Not Regularly Accessed by Organization 13.6: Encrypt Mobile Device Data If your organization has “moderate” or “significant” resources, it can implement further sub-controls, such as: 13.3: Monitor and Block Unauthorized Network Traffic 13.4: Only Allow Access to Authorized Cloud Storage or Email Providers 13.5: Monitor and Detect Any Unauthorized Use of Encryption By implementing the CIS controls and sub-controls on a priority basis, businesses can implement a reasonably effective cybersecurity program.  Looking for a straightforward way to implement multiple sub-controls across several CIS controls? implement email security software. Email is the entry-point for 96% of phishing attacks.
Introduction to the NIST Cybersecurity Framework The NIST Cybersecurity Framework (full title: Framework for Improving Critical Infrastructure Cybersecurity) is a comprehensive set of security controls and guidance for private sector organizations. Currently, at version 1.1, the framework aims to improve the general level of cybersecurity among US organizations. The framework is guidance — it’s entirely voluntary  — and it can be customized according to a company’s sector, resources, and risk profile. The framework’s “core” consists of cybersecurity activities and outcomes — written in accessible language that should be understandable to non-technical teams. (Phew!) The core activities and outcomes are sorted into five functions, which are further divided into categories. We’ve listed them below.  Identify: The “Identify” function provides the essential, foundational activities and outcomes necessary to use the framework. Outcomes categories associated with this function include: ID.AM: Asset Management ID.BE: Business Environment ID.RA: Risk Assessment Protect: The “Protect” function activities help mitigate the impact of a potential cyberattack or data breach. Protect outcome categories include: PR.AC: Identity Management and Access Control PR.AT: Awareness and Training PR.DS: Data Security Detect: The “Detect” function enables businesses to quickly detect that a cybersecurity event has occurred. Detect outcome categories include: DE.AE: Anomalies and Events  DE.CM: Security Continuous Monitoring DE.DP: Detection Processes Respond: Implementing the “Respond” function will ensure your business takes appropriate action during a cybersecurity event. Outcome categories in this function include: RS.RP: Response Planning  RS.CO: Communications  RS.AN: Analysis Recover: The “Recover” function allows an organization to return to normal functioning after a cyberattack. Recover function outcome categories include: RC.RP: Recovery Planning  RC.IM: Improvements RC.CO: Communications Each function’s categories are, in turn, divided into subcategories. For example: ID.AM (function: Identity, category: Asset Management): ID.AM-1: Physical devices and systems within the organization are inventoried ID.AM-2: Software platforms and applications within the organization are inventoried ID.AM-3: Organizational communication and data flows are mapped The subcategories all come with “informative references”, which are practical resources to help businesses achieve the outcomes.  For example, ID.AM-1 (Identify: Asset Management) includes the following references: CIS Control 1  ISO 27001:2013 Annexes A.8.1.1 and A.8.1.2 NIST Special Priority (SP) 800-53 (revision 4) CM-8 and PM-5 Introduction to ISO 27000 Series
The ISO 27000 Series (sometimes called the ISO/IEC 27000 Series) is a family of information security standards published by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). The ISO 27000 Series is extensive, covering information security requirements, guidelines, and sector-specific standards. Examples of some of the published standards in the ISO 27000 Series include: ISO 27000: Information Security Management Systems — Overview and Vocabulary ISO 27003: Information Security Management System Implementation Guidance ISO 27018: Code of Practice for Protection of Personally Identifiable Information (PII) in Public Clouds Acting as PII Processors ISO 27019: Information Security for Process Control in the Energy Industry ISO 27032: Guideline for cybersecurity ISO 27033: IT network security Businesses of all sizes can implement one or more of the ISO 27000 Series standards. These are internationally recognized standards and are well-respected around the world.  While implementing ISO 27000 controls is not legally mandatory, there is an expectation of ISO-compliance in many industries and contexts. For example, for public cloud storage service providers that process personal information, achieving ISO 27018 compliance is crucial. ISO 27001 To give you a feel for ISO 27000 implementation, we’re going to take a closer look at one of the more popular standards in the series: ISO 27001, full name “Information technology — Security techniques — Information security management systems — Requirements.” ISO 20071 aims to enable businesses to establish, implement, maintain, and continually improve an information security management system (ISMS). Unlike the CIS Controls or the NIST Cybersecurity Framework, ISO 20071 is not available for free. The ISO 27001 standard consists of ten “clauses,” and an annex containing 114 controls, sorted into 14 sets. A business can prioritize its implementation of these controls according to its operational requirements. An essential part of complying with ISO 27001 is risk assessment. An ISO 27001 risk assessment can be broken down into several stages: Creating a risk assessment methodology that accounts for: Your operating context Risk criteria Risk tolerance Identifying information assets, such as: Digital documents Paper files Storage devices Mobile devices Identifying threats: Social engineering attacks, such as spear phishing Exfiltration of data by trusted employees Weak passwords leading to hacked employee accounts ISO 27001 compliance is an ongoing process that requires the commitment of employees across your whole organization. Once a company has implemented sufficient controls, it can undergo an audit and obtain ISO 27001 certification. Tessian is ISO 27001 certified. You can read more about your integrations, compatibility, and partnerships here. 
Introduction to PCI DSS The PCI DSS applies to all organizations that accept, transmit, or store information associated with payment cards (known as “merchants”). The PCI DSS sits alongside the PCI PTS (for manufacturers) and the PCI PA-DSS (for software developers). Unlike the other frameworks we’ve looked at, the PCI DSS is mandatory for any business that qualifies as a merchant. The Payment Card Industry Council enforces PCI DSS compliance, and — in some jurisdictions — it is incorporated into law. The framework’s requirements differ according to how many Visa transactions a merchant processes per year. There are four levels of PCI DSS requirements: Level 1: Any merchant that:  Processes more than 6 million Visa transactions per year, or Is determined by Visa as needing to meet level 1 requirements Level 2: Any merchant that processes 1-6 million Visa transactions per year Level 3: Merchants that process 20,000-1 million eCommerce Visa transactions per year Level 4: Any merchant that: Processes fewer than 20,000 Visa transactions per year, or Processes fewer than 1 million non-eCommerce Visa transactions per year As you can see, eCommerce merchants have slightly stricter requirements due to the risks of transacting online.  If a merchant suffers a data breach, it might be required to move up a level to continue making card transactions. This is one of many reasons you should take a “security-first” approach and implement as many cybersecurity controls as your budget allows. The PCI DSS consists of 12 requirements, which can be summarized as: Use a firewall Change default passwords and other security parameters Protect cardholder data in storage Encrypt cardholder in transit Implement and update antivirus software  Ensure systems and applications are secure Restrict access to cardholder data Assign unique user IDs  Maintain physical safeguards over cardholder data Monitor access to cardholder data and network resources  Test security systems  Maintain an information security policy In fewer words: Merchants must protect cardholder data from internal and external threats.  How can Tessian help with cybersecurity framework implementation? As we’ve seen, all cybersecurity frameworks require businesses to protect the information in their control from threats such as: Social engineering attacks  Accidental data loss Insider threats Across three solutions, Tessian detects and prevents email-based cybersecurity threats. Why email? Read more about why email is the threat vector cybersecurity leaders are most concerned about on our blog.  You can also learn why rule-based DLP solutions are failing and why the world’s top organizations (in some of the most regulated industries) trust Tessian.
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September Cybersecurity News Roundup
30 September 2020
We’re back with another monthly roundup of cybersecurity news. Cybercriminals have once again been busy, with several high-profile data breaches and ransomware attacks occurring throughout September. And – rather unsurprisingly – social media platforms Twitter and TikTok have made the cut for the third month running. Here are the top cybersecurity stories from September 2020, including links to further information. Need to catch-up? Check out headlines from July and top stories from August on our blog. Researchers Predict That CEOs Will Be Personally Liable for Cyber-Physical Attacks Research and advisory firm Gartner (who recently named Tessian a Cool Vendor) predicted this month that 75% of CEOs could hold personal liability for “cyber-physical” attacks by 2024. Cyber-physical attacks aim to impact the “real world,” including critical infrastructure, internet of things devices, and healthcare equipment. Such attacks can result in physical injury and death. Gartner predicts that that cyber-physical attacks will cause up to $50 billion of damage by 2023 So what if Gartner is right? It would mean that if a company suffers a cyberattack resulting in physical harm — and it turns out that the company has not implemented appropriate cybersecurity measures — the company’s CEO could have to pay fines with their own money. 
Gartner’s research tells us what every effective business leader already knows — an effective cybersecurity program is an essential requirement for every organization. If a cyberattack occurs, the buck stops with the company’s senior executives. Argentinian Government Faces $4 Million Ransom Following Cyberattack On September 6, Argentina temporarily stopped allowing people to cross its borders after the Netwalker ransomware hit the country. The attackers encrypted government migration data and demanded 355 Bitcoins (around $4 million) to unencrypt it. This cyberattack led to chaos across border checkpoints — but the Argentinian government told domestic news website Infobae that it had no intention of negotiating with the hackers. Ransomware continues to cause havoc worldwide, and it appears the problem is only getting worse. Research by SonicWall recorded approximately 121 million ransomware attacks in the first half of 2020. Personal Information of 46,000 US Military Veterans Breached The US Veterans Association (VA) announced this month that the personal information of around 46,000 military veterans had been “accessed by unauthorized users.” The cybercriminals aimed to “divert payments” intended for healthcare providers. The VA’s financial services team wrote to the affected individuals to advise on how to mitigate the effects of the breach and offer free access to credit monitoring services. The VA serves veterans all over the US. Strict new data breach laws in several jurisdictions — including New York, Washington DC, and Oregan — mean that the VA could face huge fines given the breach’s context. Want to know more about US data security laws? Read our guidance for security leaders. 75% of IT leaders believe the future of work is hybrid In a new report – The Future of Hybrid Working – Tessian reveals that IT leaders and employees both believe the future of work will be remote or hybrid. But, it’s clear this shift won’t be easy. Check out some of the key stats below: 82% of IT leaders believe employees are at greater risk of phishing attacks when working remotely Over a third of IT leaders are worried about their teams will stretched too far in terms of time and resource Half of emoployees have been working on their personal devices since March 2020 Nearly 75% of employees said they received a phishing email while working on a personal device between March and July 2020….and 68% admitted to clicking a link or downloading an attachment within that email 78% of IT leaders think their organization is at greater risk of insider threats if their company adopts a permanent hybrid working structure Read the full report to learn more and to understand how business can balance flexibility and security without draining IT teams’ resources. Thousands of COVID-19 Patients’ Data Leaked Due to “Human Error” A massive data breach occurred in Wales this month when the personal information of 18,105 coronavirus patients was leaked following an “individual human error.” The breach affected every Welsh resident who tested positive for COVID-19 between February 27 and August 30. Public Health Wales said that the data included the “initials, date of birth, geographical area, and sex” of the affected individuals. In nearly 11% of people, though, the data also included the name of the nursing home or other healthcare setting in which the individual lived. The data was uploaded onto a public server, where it was accessible and searchable for around 20 hours. It was viewed 56 times throughout this period.  Human error is a key cause of data breaches. Statistics show that around 88% of data breaches start with human error, and almost half of all employees believe they have made an error at work leading to security repercussions. Chinese Company Holds Data About 2.4 million Influential People An academic at Fulbright University, Vietnam, has uncovered a vast Chinese database containing personal information of around 2.4 million people and their families. It looks like these individuals are “people of interest” to the Chinese Communist Party (CCP). The company responsible for maintaining this huge database “provides big data analytics as well as other functionality to support Chinese military and intelligence analysts,” according to a research paper. The research also suggests that the CCP uses the data for “intelligence, military, security, and state operations in information warfare and influence targeting.”  The database is believed to provide a way for the CCP to influence people in target sectors. It may be one of many such databases maintained by Chinese companies. Much of the information in the database has been gleaned from publicly-available sources. The Chinese database is yet another important reason you should consider limiting the amount of personal information you put online. You can learn more about how hackers are using open-source recon for deepfakes and other social engineering attacks from Elvis M. Chan, Supervisory Special Agent at the FBI and Nina Schick, Author of “Deep Fakes and the Infocalypse: What You Urgently Need to Know”, who both joined us at Tessian Human Layer Security Summit. You can access their session “Safeguarding the 2020 Elections, Disarming Deepfakes via HLS On-Demand.  Twitter Provides Enhanced Security For US Election Following its spear phishing incident this July, Twitter has announced enhanced account security for certain “high-profile accounts” throughout the US election. Twitter said that various types of accounts, including those belonging to US politicians, campaign officials, and political journalists, would receive the security enhancements from September 17. So what’s changing? First, affected users must create “strong passwords,” of at least ten characters in length. They will need to confirm password reset requests via email. The affected users will also be “strongly encouraged” to enable two-factor authentication (2FA). But that’s not all. Recall that the July spear phishing incident involved “internal support tools” — it wasn’t primarily an issue with users’ account passwords. To address this, Twitter also states that it will improve internal monitoring of the affected accounts, including by using “more sophisticated detections and alerts,” “increased login defenses,” and “expedited account recovery” processes. Want to know how to avoid the issues Twitter faced this July? Read our guidance on “vishing” attacks. UHS Hospitals Hit by Reported Country-Wide Ryuk Ransomware Attack On September 27, Universal Health Services (UHS) – a Fortune 500 hospital and healthcare services provider that serves 3.5 million patients a year – was the target of a cyberattack that disable multiple antivirus programs and left hospitals around the country without access to computer and phone systems. According to employees, files were being renamed to include the .ryk extenstion, computers’ screens changed, and – eventually – shut down, leaving them without access to anything computer-based. And, in response to the attack, employees were told to shut down all systems to block attackers’ from reaching more devices on the network. While UHS hasn’t made a statement, the logistics of the incident suggest ransomware. That means patient and employee data is at risk. Energy Companies Advised to Create Cyberattack Response Plans The US Federal Energy Regulatory Commission (FERC) and the North American Electricity Reliability Corporation (NERC) have released a report advising energy providers on creating an Incident Response and Recovery (IRR) plan for cyberattacks. The report is based around an existing cybersecurity framework: the National Institute of Standards and Technology (NIST) Special Publication 800-61, also known as the Computer Security Incident Handling Guide.  Governments appear to be increasingly concerned about the cybersecurity of critical infrastructure. This concern is well-founded — in 2019, 90% of security professionals surveyed across the utilities, energy, health, and transport sectors reported that their organizations had faced at least one successful cyberattack. Much of the advice to energy providers is good practice across all sectors. FERC and NERC recommend a four-part framework, consisting of security controls relating to preparation, detection and analysis, containment and eradication, and post-incident activity.
UK Agency Warns Schools and Universities About Ransomware Attacks As students worldwide return to schools, colleges, and universities, education providers are most concerned with defending against a COVID-19 outbreak. But the UK’s National Cyber Security Centre (NCSC) gave a stark warning about a different type of threat: ransomware. The NCSC’s alert describes “recent trends observed in ransomware attacks” targeting the education sector, which the agency says are increasingly common. The guidance follows a series of ransomware attacks against universities in the UK, US, and Canada this July. The agency warns that cybercriminals are exploiting out-of-date software and are accessing remote desktop protocol (RDP) software using credentials stolen via phishing attacks. It also warns that phishing emails are being used to deploy ransomware. So how does the NCSC recommend education providers protect themselves? The same ways all cyber-secure organizations protect themselves — including ”disrupting ransomware attack vectors” by implementing phishing defenses, and “enabling effective recovery” by keeping backups of data. Implementing DMARC is also essential to prevent brand impersonation and successful spear phishing attacks. And, according to Tessian research, 40% of the top 20 US universities aren’t using DMARC records.  TikTok Ban Delayed Following ByteDance Sale On September 21, US President Trump said he had approved the sale of part of ByteDance, the parent company of video-sharing platform TikTok, to Oracle and Wal-Mart. The deal temporarily averts harsh restrictions on TikTok set out by the US Department of Commerce three days earlier. The sale results from an executive order issued by President Trump in August, stating that the TikTok app “captures vast swaths of information from its users, including… location data and browsing and search histories.” TikTok maintains that this activity is standard industry practice. The US companies could take a collective 20% stake in ByteDance, with Oracle hosting TikTok user data in Oracle Cloud. Some analyses suggest that security-conscious nations and businesses are increasingly likely to implement these sorts of “data localization” measures. Trump had previously assured the public that TikTok would be “totally controlled” by the US firms. However, the president assured a press conference that the companies would be using “separate clouds and very, very powerful security.” That’s all for this month. If we missed anything, please email [email protected] and stay tuned for the next roundup. Don’t forget: You can easily share this on social media via the buttons at the top right of this post. 
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Compliance in the Legal Sector: Laws & How to Comply
16 September 2020
Thanks to the digital transformation and increasingly strict data security obligations, law firms’ business priorities are changing. Today, data protection, transparency, and privacy are top-of-mind.  It makes sense.  Keep reading to find out… Why the legal sector is bound to such strict compliance standards Which regulations govern law firms How cybersecurity can help ensure compliance Interested in learning more about regional compliance standards or those that impact other industries? Check out our Compliance Hub to find articles, tips, guides, and more or download our CEO’s Guide to Data Protection and Compliance to learn more about how cybersecurity enables business and drives revenue. 
Why is the legal sector bound to strict compliance standards? Lawyers’ hard drives, email accounts, and smartphones can contain anything from sensitive intellectual property and trade secrets to the Personally Identifiable Information (PII) of clients.  Unfortunately, hackers and cybercriminals are all too aware of this. It’s no surprise, then, that the legal sector is amongst the most targeted by social engineering attacks like spear phishing. Ransomware is a big problem, too. In fact, just a few months ago, Grubman Shire Meiselas & Sacks, a prominent media law firm, had its client information compromised.  Those behind the attack later threatened to auction some of these files concerning major celebrities for as much as $1.5 million unless the firm paid a $42 million ransom.  But, it’s not just inbound attacks that law firms have to worry about. Because the legal sector is highly competitive, incidents involving Insider Threats are a concern, too.  96% of IT leaders working in the legal sector say they’re worried that someone within the organization will cause a breach, either accidentally (via a misdirected email, for example) or maliciously.  The regulations governing law firms When it comes to data protection and privacy, the legal sector is subject to a relatively strict regulatory framework both under the law and rules imposed by professional bodies. Depending on where a firm is based and what its practice areas are, it can be subject to several stringent laws and regulations. This is especially true for firms operating in major markets like the United States, the United Kingdom, and the European Union. In this article, we’ll focus on some of the more general regulations and standards that all firms operating in these markets are expected to abide by. General Data Protection Regulation (GDPR) When the GDPR was introduced in 2018, it represented the largest change to data protection legislation in almost two decades. It also contains some of the most thorough compliance obligations for law firms and indeed any other entity that collects, stores, and processes data. The GDPR has been designed to help and guide organizations with a legitimate business interest as to how personal data should be handled and gives regulators the power to impose large fines on firms that aren’t compliant.  You can read more about the largest GDPR fines (so far) in 2020 on our blog. What is the GDPR’s purpose? The GDPR was introduced amid growing concerns surrounding the safety of personal data and the need to protect it from hackers, cybercrime, Insider Threats, unethical use, and the growing attack surface.  Essentially, it gives citizens full and complete control of their data, subject to some restrictions (for example, where data must be held by firms by law).  What is the scope of the GDPR? The legislation regulates the use of ‘personal data’ and applies to all organizations located within the EU, as well as organizations outside the EU who offer their goods or services to EU citizens. It also applies to organizations that hold data pertaining to EU citizens, regardless of their location.  What should law firms know about the GDPR? The main part of the GDPR that law firms should be paying attention to is Article 5.  This sets out the principles relating to the collection and processing of personal data. The six key principles are that personal data: Should be processed lawfully, fairly and in a transparent manner; Should only be collected for legitimate purposes; Should be limited to what’s necessary in relation to the purpose(s) it’s processed; Must be accurate and kept up to date, with any inaccurate erased or rectified; Should be held for longer than is necessary for its purposes*; and Should be held with adequate security against theft, loss, and/or damage.  The GDPR also gives your clients the right to ask for their data to be removed (‘right of erasure’) without the need for any outside authorization. Note: Data can only be kept contrary to a client’s wishes to ensure compliance with other regulations.  What should a firm do in the event of a breach? Before GDPR, law firms could follow their own protocols when dealing with a data breach. But now, the GDPR forces firms to report any data breaches, no matter how big or small they are, to the relevant regulatory authority within 72 hours. In the UK, for example, the regulatory authority is the Information Commissioner’s Office (ICO):  The notification must: Contain relevant details regarding the nature of the breach; The approximate number of people impacted; and Contact details of the firm’s Data Protection Officer (DPO).  Clients who have had their personal data compromised must also be notified of the breach, the potential outcome, and any remediation “without undue delays”.  It’s important to note that breaches aren’t always the results of malicious activity by an Insider Threat or hacker outside the organization. Even accidents can result in breaches. In fact, misdirected emails (emails sent to the wrong person) has consistently been one of the most frequently reported incidents to the ICO.  That’s why it’s essential law firms (and other organizations) have safeguards in place to prevent mistakes like these from happening. Looking for a solution? Tessian Guardian prevents misdirected emails in some of the world’s most prestigious law firms, including Dentons, Hill Dickinson, and Travers Smith What are the penalties for non-compliance? Financial penalties imposed for GDPR violations can be harsh, and they often are; regulatory authorities are keen to highlight just how important the GDPR is and how seriously it should be taken. Fines for non-compliance can be as high as 4% of annual global turnover or €20 million—whichever is higher. American Bar Association Rule 1.6 Rule 1.6 governs the confidentiality of client information. It states, “A lawyer shall make reasonable efforts to prevent the inadvertent or unauthorized disclosure of, or unauthorized access to, information relating to the representation of a client.” Simply put, lawyers must make efforts to protect the data of their clients.  Two years ago, the American Bar Association issued new guidance in the form of Formal Opinion 483. This covers the importance of data protection and how firms should act when, not if, a security breach happens. This wording demonstrates that the ABA recognizes that breaches are part and parcel of firms operating in the modern world, and the statistics confirm this. 
In essence, Formal Opinion 483 states:  Lawyers have a duty of competence in implementing adequate security measures regarding technology. Lawyers must reasonably and continuously assess their systems, operating procedures, and plans for mitigating a breach. In the event of a suspected or confirmed breach, lawyers must take steps to stop the attack and prevent any further loss of data. When a breach is detected and confirmed, lawyers must inform their clients in a timely manner and with enough information for clients to make informed decisions.  The bottom line: law firms must protect data with cybersecurity. Solicitors’ Regulation Authority Code of Conduct In the UK, solicitors are obliged under the Solicitors’ Regulation Authority (SRA) Code of Conduct to maintain effective systems and mitigate risks to client confidentiality and client money. Solicitors are also obliged to ensure systems comply more broadly with the SRA’s other regulatory arrangements.  The SRA says that, although being hacked or falling victim to a data breach is not necessarily a failure to meet these requirements, firms should take proportionate steps to protect themselves and their clients while retaining the advantages of advanced IT.  Where a report of cybercrime (note: crime, not a loss that takes place due to negligence) is received, the SRA takes a constructive approach in dealing with the firm, especially if the firm:  Is proactive and immediately notifies the SRA. Has taken steps to inform the client and as a minimum make good any loss. Shows they are taking steps to improve their systems and processes to reduce the risk of a similar incident happening again.  That means that, under the SRA’s Code of Conduct, law firms should take steps to prevent inbound attacks like spear phishing and set-up policies and processes that ensure swift reporting.  The good news is, Tessian can help with both inbound attacks and Insider Threats and has a history of successfully protecting law firms around the world from both. 
How Tessian helps law firms stay compliant Across all three of the regulations listed here, there’s one commonality: law firms are responsible for ensuring that their IT systems and processes are robust and secure enough to keep data safe and mitigate the chance of a breach taking place.  But, that’s easier said than done, especially in our dynamic and digitally connected world where threats are ever-evolving. So, where should law firms start? Email. 90% of all data breaches start on email and it’s the threat vector IT leaders are most concerned about protecting. That’s why Tessian is focused on protecting this channel. Across three solutions, Tessian detects and prevents threats using machine learning, which means it’s constantly adapting, without requiring maintenance from thinly-stretched security teams. Tessian Defender detects and prevents spear phishing Tessian Guardian detects and prevents accidental data loss via misdirected email Tessian Enforcer detects and prevents data exfiltration attempts from Insider Threats Importantly, Tessian is non-disruptive. That way, partners, lawyers, and administrators can do their jobs without security getting in the way. Tessian stops threats, not business.  To learn more about how Tessian helps law firms like Dentons, Hill Dickinson, and Travers Smith protect data, maintain client trust, and satisfy compliance standards, talk to one of our experts. 
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18 Actionable Insights From Tessian Human Layer Security Summit
By Maddie Rosenthal
09 September 2020
In case you missed it, Tessian hosted its third (and final) Human Layer Security Summit of 2020 on September 9. This time, we welcomed over a dozen security and business leaders from the world’s top institutions to our virtual stage, including: Jeff Hancock from Stanford University David Kennedy, Co-Founder and Chief Hacking Officer at TrustedSec Merritt Baer, Principal Security Architect at AWS Rachel Beard, Principal Security Technical Architect at Salesforce  Tim Fitzgerald, CISO at Arm  Sandeep Amar, CPO at MSCI  Martyn Booth, CISO at Euromoney  Kevin Storli, Global CTO and UK CISO at PwC Elvis M. Chan, Supervisory Special Agent at the FBI  Nina Schick, Author of “Deep Fakes and the Infocalypse: What You Urgently Need to Know” Joseph Blankenship, VP Research, Security & Risk at Forrester Howard Shultz, Former CEO at Starbucks  While you can watch the full event on YouTube below, we’ve identified 18 valuable insights that security, IT, compliance, and business leaders should apply to their strategies as they round out this year and look forward to the next.
Here’s what we learned at Tessian’s most recent Human Layer Security Summit. Not sure what Human Layer Security is? Check out this guide which covers everything you need to know about this new category of protection.  1. Cybersecurity is mission-critical Security incidents – whether it’s a ransomware attack, brute force attack, or data leakage from an insider threat – have serious consequences. Not only can people lose their jobs, but businesses can lose customer trust, revenue, and momentum. While this may seem obvious to security leaders, it may not be so obvious to individual departments, teams, and stakeholders. But it’s essential that this is communicated (and re-communicated).  Why? Because a company that’s breached cannot fulfill its mission. Keep reading for insights and advice around keeping your company secure, all directly from your peers in the security community. 2. Most breaches start with people People control our most sensitive systems and data. It makes sense, then, that most data breaches start with people. But, that doesn’t mean employees are the weakest link. They’re a business’ strongest asset! So, it’s all about empowering them to make better security decisions. That’s why organizations have to adopt people-centric security solutions and strategies.
The good news is, security leaders don’t face an uphill battle when it comes to helping employees understand their responsibility when it comes to cybersecurity… 3. Yes, employees are aware of their duty to protect data Whether it’s because of compliance standards, cybersecurity headlines in mainstream media, or a larger focus on privacy and protection at work, Martyn Booth, CISO at Euromoney reminded us that most employees are actually well aware of the responsibility they bear when it comes to safeguarding data.  This is great news for security leaders. It means the average employee will be more likely to abide by policies and procedures, will pay closer attention during awareness training, and will therefore contribute to a more positive security culture company-wide. Win-win. 4. But, employees are more vulnerable to phishing scams outside of their normal office environment  While – yes – employees are more conscious of cybersecurity, the shift to remote working has also left them more vulnerable to attacks like phishing scams.  “We have three “places”: home, work, and where we have fun. When we combine two places into one, it’s difficult psychologically. When we’re at home sitting at our coffee table, we don’t have the same cues that remind us to think about security that we do in the office. This is a huge disruption,” Jeff Hancock, Professor at Stanford University explained.  Unfortunately, hackers are taking advantage of these psychological vulnerabilities. And, as David Kennedy, Co-Founder and Chief Hacking Officer at TrustedSec pointed out, this isn’t anything new. Cybercriminals have always been opportunistic in their attacks and therefore take advantage of chaos and emotional distress.  To prevent successful opportunistic attacks, he recommends that you: Reassess what the new baseline is for attacks Educate employees on what threats look like today, given recent events Identify which brands, organizations, people, and departments may be impersonated (and targeted) in relation to the pandemic But, it’s not just inbound email attacks we need to be worried about.  5. They’re more likely to make other mistakes that compromise cybersecurity, too This change to our normal environment doesn’t just affect our ability to spot phishing attacks. It also makes us more likely to make other mistakes that compromise cybersecurity. Across nearly every session, our guest speakers said they’ve seen more incidents involving human error and that security leaders should expect this trend to continue. That’s why training, policies, and technology are all essential components of any security strategy. More on this below. 6. Security awareness training has to be ongoing and ever-evolving At our first Human Layer Security Summit back in March, Mark Logsdon, Head of Cyber Assurance and Oversight at Prudential, highlighted three key flaws in security awareness training: It’s boring It’s often irrelevant It’s expensive What he said is still relevant six months on and it’s a bigger problem than ever, especially now that the perimeter has disappeared, security teams are short-handed, and individual employees are working at home and on their own devices. So, what can security leaders do?  Kevin Storli, Global CTO and UK CISO at PwC highlighted the importance of tailoring training to ensure it’s always relevant. That means that instead of just reminding employees about compliance standards and the importance of a strong password, we should also be focusing on educating employees about remote access, endpoints, and BYOD policies. But one training session isn’t enough to make security best practice really stick. These lessons have to be constantly reinforced through gamification, campaigns, and technology.  Tim Fitzgerald, CISO at Arm highlighted how Tessian’s in-the-moment warnings have helped his employees make the right decisions at the right time.  “Warnings help create that trigger in their brain. It makes them pause and gives them that extra breath before taking the next potentially unsafe step. This is especially important when they’re dealing with data or money. Tessian ensures they question what they’re doing,” he said.
7. You have to combine human policies with technical controls to ensure security  It’s clear that technology and training are both valuable. That means your best bet is to combine the two. In discussion with Ed Bishop, Tessian Co-Founder and CTO, Merritt Baer, Principal Security Architect at AWS and Rachel Beard, Principal Security Technical Architect at Salesforce, both highlighted how important it is for organizations to combine policies with technical controls. But security teams don’t have to shoulder the burden alone. When using tools like Salesforce, for example, organizations can really lean on the vendor to understand how to use the platform securely. Whether it’s 2FA, customized policies, or data encryption, many security features will be built-in.  8. But…Zero Trust security models aren’t always the answer While – yes – it’s up to security teams to ensure policies and controls are in place to safeguard data and systems, too many policies and controls could backfire. That means that “Zero Trust” security models aren’t necessarily the best way to prevent breaches.
9. Security shouldn’t distract people from their jobs  Security teams implement policies and procedures, introduce new software, and make training mandatory for good reason. But, if security becomes a distraction for employees, they won’t exercise best practice.  The truth is, they just want to do the job they were hired to do!  Top tip from the event: Whenever possible, make training and policies customized, succinct, and relevant to individual people or departments.  10. It also shouldn’t prevent them from doing their jobs  This insight goes back to the idea that “Zero Trust” security models may not be the best way forward. Why? Because, like Rachel, Merrit, Sandeep, and Martyn all pointed out: if access controls or policies prevent an employee from doing their job, they’ll find a workaround or a shortcut. But, security should stop threats, not flow. That’s why the most secure path should also be the path of least resistance. Security strategies should find a balance between the right controls and the right environment.  This, of course, is a challenge, especially when it comes to rule-based solutions. “If-then” controls are blunt instruments. Solutions powered by machine learning, on the other hand, detect and prevent threats without getting in the way. You can learn more about the limitations of traditional data loss prevention solutions in our report The State of Data Loss Prevention 2020.  11. Showing downtrending risks helps demonstrate the ROI of security solutions  Throughout the event, several speakers mentioned that preemptive controls are just as important as remediation. And it makes sense. Better to detect risky behavior before a security incident happens, especially given the time and resources required in the event of a data breach.  But tracking risky behavior is also important. That way, security leaders can clearly demonstrate the ROI of security solutions. Martyn Booth, CISO at Euromoney, explained how he uses Tessian Human Layer Security Intelligence to monitor user behavior, influence safer behavior, and track risk over time. “We record how many alerts are sent out and how employees interact with those alerts. Do they follow the acceptable use policy or not? Then, through our escalation workflows that ingest Tessian data, we can escalate or reinforce. From that, we’ve seen incidents involving data exfiltration trend downwards over time. This shows a really clear risk reduction,” he said. 12. Targeted attacks are becoming more difficult to spot and hackers are using more sophisticated techniques As we mentioned earlier, hackers take advantage of psychological vulnerabilities. But, social media has turbo-charged cybercrime, enabling cybercriminals to create more sophisticated attacks that can be directed at larger organizations. Yes, even those with strong cybersecurity. Our speakers mentioned several examples, including Garmin and Twitter. So, how do they do it? Research! LinkedIn, company websites, out-of-office messages, press releases, and news articles all provide valuable information that a hacker could use to craft a believable email. But, there are ways to limit open-source recon. See tips from David Kennedy, Co-Founder and Chief Hacking Officer at TrustedSec, below. 
13. Deepfakes are a serious concern Speaking of social media, Elvis M Chan, Supervisory Special Agent at the FBI and Nina Schick, Author of “Deep Fakes and the Infocalypse: What You Urgently Need to Know”,  took a deep dive into deepfakes. And, according to Nina, “This is not an emerging threat. This threat is here. Now.” While we tend to associate deepfakes with election security, it’s important to note that this is a threat that affects businesses, too.  In fact, Tim Fitzgerald, CISO at Arm, cited an incident in which his CEO was impersonated in a deepfake over Whatsapp. The ask? A request to move money. According to Tim, it was quite compelling.  Unfortunately, deepfakes are surprisingly easy to make and generation is outpacing detection. But, clear policies and procedures around authenticating and approving requests can ensure these scams aren’t successful. Not sure what a deepfake is? We cover everything you need to know in this article: Deepfakes: What Are They and Why Are They a Threat? 14. Supply chain attacks are, too  In conversation with Henry Treveleyan Thomas, Head of Customer Success at Tessian, Kevin Storli, Global CTO and UK CISO at PwC discussed how organizations with large supply chains are especially vulnerable to advanced impersonation attacks like spear phishing. “It’s one thing to ensure your own organization is secure. But, what about your supply chain? That’s a big focus for us: ensuring our supply chain has adequate security controls,” he said. Why is this so important? Because hackers know large organizations like PwC will have robust security strategies. So, they’ll look for vulnerabilities elsewhere to gain a foothold. That’s why strong cybersecurity can actually be a competitive differentiator and help businesses attract (and keep) more customers and clients.  15. People will generally make the right decisions if they’re given the right information 88% of data breaches start with people. But, that doesn’t mean people are careless or malicious. They’re just not security experts. That’s why it’s so important security leaders provide their employees with the right information at the right time. Both Sandeep Amar, CPO at MSCI and Tim Fitzgerald, CISO at Arm talked about this in detail.  It could be a guide on how to spot spear phishing attacks or – as we mentioned in point #6 – in-the-moment warnings that reinforce training.   Check out their sessions for more insights.  16. Success comes down to people While we’ve talked a lot about human error and psychological vulnerabilities, one thing was made clear throughout the Human Layer Security Summit. A business’s success is completely reliant on its people. And, we don’t just mean in terms of security. Howard Shultz, Former CEO at Starbucks, offered some incredible advice around leadership which we can all heed, regardless of our role. In particular, he recommended: Creating company values that really guide your organization Ensuring every single person understands how their role is tied to the goals of the organization Leading with truth, transparency, and humility
17. But people are dealing with a lot of anxiety right now Whether you’re a CEO or a CISO, you have to be empathetic towards your employees. And, the fact is, people are dealing with a lot of anxiety right now. Nearly every speaker mentioned this. We’re not just talking about the global pandemic.  We’re talking about racial and social inequality. Political unrest. New working environments. Bigger workloads. Mass lay-offs.  Joseph Blankenship, VP Research, Security & Risk at Forrester, summed it up perfectly, saying “We have an anxiety-ridden user base and an anxiety-ridden security base trying to work out how to secure these new environments. We call them users, but they’re actually human beings and they’re bringing all of that anxiety and stress to their work lives.” That means we all have to be human first. And, with all of this in mind, it’s clear that….. 18. The role of the CISO has changed  Sure, CISOs are – as the name suggests – responsible for security. But, to maintain security company-wide, initiatives have to be perfectly aligned with business objectives, and every individual department, team, and person has to understand the role they play. Kevin Storli, Global CTO and UK CISO at PwC touched on this in his session. “To be successful in implementing security change, you have to bring the larger organization along on the journey. How do you get them to believe in the mission? How do you communicate the criticality? How do you win the hearts and minds of the people? CISOs no longer live in the back office and address just tech aspects. It’s about being a leader and using security to drive value.” That’s a tall order and means that CISOs have to wear many hats. They need to be technology experts while also being laser-focused on the larger business. And, to build a strong security culture, they have to borrow tactics from HR and marketing.  The bottom line: The role of the CISO is more essential now than ever. It makes sense. Security is mission-critical, remember? If you’re looking for even more insights, make sure you watch the full event, which is available on-demand. You can also check out previous Human Layer Security Summits on YouTube.
Compliance DLP
Ultimate Guide to The POPIA – South Africa’s Privacy Law
03 September 2020
Over the last several years, there have been a number of generally applicable data privacy and protection laws rolled out around the world, starting with Europe’s General Data Protection Regulation back in 2018.  Earlier this year, California released The California Consumer Privacy Act (CCPA), which took an even broader view than the GDPR of what’s considered private data.  The most recent privacy law? South Africa’s Protection of Personal Information Act (POPIA). Note: The POPIA initially passed in 2013 but spent seven years in limbo, until it finally came into effect on July 1, 2020. It’s essential that security and business leaders understand which of these compliance standards they’re bound to comply with, how to comply, and the consequences of a compliance breach.
What businesses does the POPIA apply to? The POPIA applies to every type of company, regardless of size, sector, or location, so long as it is either: Based in South Africa, or Based outside of South Africa, but processes personal information within South Africa (unless it is only forwarding personal information through South Africa) That means that non-South African companies doing business in South Africa should comply with the POPIA, whether or not they have any physical presence in the country. We have good news, though. POPIA has a one-year transition period, so all affected businesses have until July 1, 2021 to ensure compliance. After this day, the South African Information Regulator will begin enforcing the law and fining non-compliant companies. Wondering how to ensure compliance? You can click the link to jump down the page to our section on “How to stay compliant with POPIA”. Otherwise, keep reading to find out what information is considered personal under POPIA.
What’s considered “personal information” under the POPIA? You have to remember, compliance is all about consumer privacy. So, POPIA, like the GDPR and CCPA, mandates that businesses properly “process” personal information. This includes collecting it, erasing it, and disclosing it to any third-parties.  So, what is “personal information”? The POPIA defines “personal information” as: “Information relating to an identifiable, living, natural person, and where it is applicable, an identifiable, existing juristic person” Within this definition: A “natural person” means an individual. An “existing juristic person” means a “legal person,” such as a corporation or charity. Importantly, by extending the definition of “personal information” to “juristic (legal) persons,” the POPIA gains a very broad scope that would cover certain business-to-business communications, too. Below is a non-exhaustive list of examples of personal information provided within the POPIA: Information relating to: Race  Gender  Physical or mental health  Belief Information about a person’s  Education Medical history Financial history An ID number, email address, phone number, or online identifier Biometric information A person’s opinions or preferences Private correspondence Opinions about a person A name, if the context in which the name is disclosed would reveal something about a person This data could be related to a business’ customers, employees, business contacts, prospective customers, and even visitors to their website. 
Who’s liable under the POPIA? We’ve already outlined which businesses need to comply with the POPIA. But, what about liability? The two main players are the “responsible party” and the “operator.” What is a “responsible party”? A “responsible party” is a public or private body that decides why and how to process personal information. A similar concept is the “data controller” under the GDPR and the “business” under the CCPA. What is an “operator” An “operator” is “a person who processes personal information for a responsible party” but is not under the responsible party’s direct authority. A similar concept is the “data processor” under the GDPR and the “service provider” under the CCPA. Operators are directly liable under the POPIA and must treat the personal information they process as confidential and should never disclose it without the responsible parties authorization. In the event of a data breach, they must notify the responsible party immediately.  Responsible parties, on the other hand, must ensure they only engage with operators under a written contract (which should ensure that the operator meets the POPIA’s data security obligations).  They must also monitor the operator’s activities to ensure that it meets its data security operations. In fewer words: everyone is responsible on some level for ensuring safe (and compliant) data processing.
You may need to adjust your service contracts so that they include a requirement to safeguard personal information. Now that you know who must comply with the POPIA, who’s liable, and what data is considered “personal”, we’ll explore perhaps the most important concept: How to lawfully process data under the POPIA. How do I lawfully process data under the POPIA? The POPIA provides a set of eight conditions businesses must satisfy when processing personal information.  To be truly effective (and ultimately ensure compliance) these principles must be baked into your overall business operations, from cybersecurity to HR.  In brief, the eight conditions for lawful processing are: Accountability: You must ensure POPIA compliance in respect of all the personal information in your control. Lawfulness: You must only collect personal information if it is adequate and non-excessive. You must have a legally justifiable reason for collecting personal information. Where possible, you must collect personal information directly from the data subject. Purpose specification: You must only collect personal information for a specific purpose, and you must not store it for longer than necessary to meet that purpose. Further processing limitation: You may only process personal information for further purposes if they are compatible with the reason you collected it. Information quality: You must ensure the personal information you maintain is accurate and complete. Openness: You must be transparent about how you provide personal information and provide consumers with notice about how and why you process their personal information. Security safeguards: You must take reasonable steps to secure the personal information in your control, and you must report any data breaches as soon as reasonably possible. Data subject participation: You must allow data subjects to access their personal information and correct or erase any inaccurate personal information. But, there are additional requirements for particularly sensitive information.
What types of information are considered “special” under the POPIA? Under the POPIA, particularly sensitive types of personal information are called “special personal information.” The categories of special personal information include: Religious or philosophical beliefs  Race or ethnic origin  Trade union membership  Political persuasion  Health or sex life  Biometric information Information about criminal behavior, including: Alleged offenses that have been committed by the individual Proceedings that may have taken place regarding the alleged offenses Like the GDPR, the POPIA places a general prohibition on the processing of special personal information. However, it is possible to process special personal information on the following grounds: With the consent of the data subject To exercise or defend your legal rights or obligations To comply with an obligation under international public law For historical, statistical, or research purposes in the public interest Where the information has been made public by the data subject
How can cybersecurity help me stay compliant with the POPIA? We know what you’re thinking: what steps can I actually take to ensure every individual, team, and department across my organization safely processes data? Like other compliance standards, the POPIA mandates “appropriate, reasonable technical and organizational measures” to prevent the loss of, damage to, and unauthorized access to personal information. The POPIA sets out four broad ways in which responsible parties must secure personal information: Identify internal and external risks Establish and maintain safeguards Regularly verify safeguards Continually update safeguards The POPIA also requires responsible parties to keep up-to-date with any sector-specific security standards and professional regulations, and ensure any operators also apply security safeguards to personal information. There’s a lot to unpack here. But, it all comes down to data loss prevention (DLP). While you can read all about DLP in this article: What is Data Loss Prevention – A Complete Guide to DLP, we’ll outline the different “types” of DLP below. Note: DLP does more or less the same thing wherever it is deployed – it looks for sensitive information crossing boundaries. But different DLP solutions operate in different ways depending on which “perimeter” is being guarded. Network DLP Network DLP protects data in motion by monitoring the traffic that enters and leaves the organization’s network. These solutions are mostly cloud-based and are designed to monitor network traffic between users and other endpoints connected through the Internet; every byte of data transmitted through a network will go through the cloud-based DLP solution.  Endpoint DLP Endpoint DLP protects data in use on employee’s devices (computers, mobile phones) by preventing unauthorized access. How? By ensuring information isn’t taken off work devices and sent or copied to unauthorized devices by allowing or denying certain tasks to be performed on the computer.  It is also able to detect and block viruses and other malware that could be transferred into your computer system from external sources, like a USB. Email DLP Email is the threat vector security and IT leaders are most concerned about, Why? Because both inbound and outbound traffic pose serious security threats.  According to data from Verizon, email is the main entry point for social engineering attacks like phishing and incidents involving Insider Threats have increased by 47% over the last two years. And, we can’t forget about accidental data loss – like misdirected emails – which is actually the most frequently reported security incident under the GDPR. Learn more about how Tessian detects and prevents both inbound and outbound threats on email to help organizations around the world stay compliant.  But organizations need more than security solutions. Under the POPIA, every public and private organization must also have an Information Officer. What are their responsibilities?  Encouraging the organization to comply with the conditions for lawful processing Assisting data subjects with requests to access their personal information Working with the Information Regulator in the event of an investigation Otherwise ensuring that the organization complies with the POPIA Once you have appointed your Information Officer, you must register them with the Information Regulator. But, what happens if DLP solutions (and your Information Officer) don’t successfully prevent data loss and a breach occurs? You have to notify relevant bodies.
What do I do in the event of a breach? If personal information is subject to unauthorized access, (i.e., a data breach occurs), responsible parties must notify: The Information Regulator, and The affected data subjects  Importantly, this must happen “as soon as reasonably possible” and should include: A description of the consequences of the breach An explanation of what the responsible party has done to contain the breach Advice to the data subjects regarding how to mitigate the impact of the breach The identity of anyone who may have accessed the personal information (if known) This is a lot of work and one of the reasons why investigation and remediation are generally the costliest categories in an overall data breach. Which, by the way, cost organizations $3.92 million on average according to IBM’s latest Cost of a Data Breach Report.
What are the penalties under the POPIA? Breaches of the POPIA can lead to harsh penalties brought by the Information Regulator, including: A fine of between 1 million and 10 million ZAR (approximately $60,000 – $600,000 USD) Imprisonment for a term of up to ten years Both a fine and a prison term The POPIA also contains a private right of action, meaning that individual data subjects can bring a private legal claim against a responsible party. A case brought under the POPIA could lead to: “Actual damages,” to compensate data subjects for any losses they have incurred “Aggravated damages,” to compensate data subjects for the distress they have experienced Fines, imprisonment, and lawsuits are not the only concerns for businesses processing people’s personal information in South Africa. Even small-scale data breaches can lead to a complaint being lodged with the Information Regulator. For more information about how much business’ have been fined under other data protection laws, check out this article: 4 Biggest GDPR Fines of 2020 (So Far). If you take nothing else away from this article, it should be that compliance and security go hand-in-hand. Businesses in South Africa and beyond must take necessary steps to safeguard the data their organizations process and hold, which requires dedicated security and IT teams and a strong data loss prevention strategy. Wondering what’s top-of-mind for other security leaders when it comes to DLP? Download the report below.
Compliance
Security vs. Compliance: What’s The Difference?
01 September 2020
Security vs. Compliance: What’s the Difference? Businesses across industries and continents are now obligated to satisfy various compliance standards, from GDPR to CCPA. But, how do you actually ensure compliance? By securing the information your organization handles. This – of course – is easier said than done and requires cross-team collaboration. In this article, we’ll explain: What Information Security means What compliance means How these concepts differ Why you can’t neglect one in favor of the other Looking for more information about specific data privacy laws? Visit our compliance content hub.  Security and Compliance: The Difference “Security” is the infrastructure, tools, and policies you put in place to protect your company’s information and equipment.  “Compliance” is the act of meeting a required set of security and regulatory standards. As you might have guessed, security and compliance are very closely linked, and each should drive the other. Keep reading to learn more about the key concepts you need to consider to ensure your organization’s information systems are up to scratch.  Security: Key Concepts When it comes to information security, organizations have to safeguard every vector that stores and transfers data. In this article, we’ll cover network, device, and employee security.  Network Security While every organization is different, most IT leaders are concerned with protecting network security. Why? Because employees access company data via various networks, including:  Your company’s own network — which can be as secure as you are prepared to make it. Your employees’ home networks — which you can’t assume will be secure. Public networks — such as on public transport and in coffee shops, which are notoriously not secure. Importantly, data can be intercepted or exfiltrated across all of the above networks. But, there are several steps you can take to mitigate network security threats: Email security software — Email security software is a critical requirement in most compliance regimes and should protect against both inbound threats like spear phishing and outbound threats like misdirected emails. Check out this blog to learn How to Choose the Right Email Security Software.  A firewall  — Firewalls can be either hardware or software-based. Certain regulations, such as PCI DSS, require both hardware and software firewalls to be in place. Access controls — Access controls allow you to restrict network access only to authorized actors. Generally applicable laws, such as the EU GDPR, treat access control as a basic tenet of reasonable security. Looking for advice on how to secure data while employees are working remotely? Check out this article: Ultimate Guide to Staying Secure While Working Remotely. Device Security Your organization is responsible for devices that store and handle vast amounts of data, including the personal information of your customers and the confidential information of your company. This applies to any devices that process company data — whether they belong to your company or your employees — including: Desktop computers Laptops Mobile phones Tablets USB storage devices You can protect these devices in multiple ways, including: Antivirus software Multi-factor authentication (MFA) Device encryption Endpoint security Anti-theft tools Employee Security 88% of data breaches are caused by human error. That’s why employee training is an essential component of any security strategy and a requirement under compliance standards.  A security training program should teach employees: How to identify and respond to threats such as phishing, smishing,  and vishing Why security policies exist and how to follow them  How to safely handle and dispose of data You can learn more about the pros (and cons) of security training in this article: Pros and Cons of Phishing Awareness Training. Compliance: Types of Standards There are several types of laws, regulations, and certifications that businesses must comply with and they all outline minimum security standards. So, what happens if your security measures don’t comply with relevant standards?  Your organizations will either be in breach of the law, in danger of being reprimanded by your industry’s regulator (which could include a hefty fine), or unable to obtain or maintain a particular certification. Generally-Applicable Laws  Some laws apply to every business operating in a given jurisdiction, regardless of sector. Compliance with these laws generally requires the implementation of “reasonable” security measures specific to their industry and proportionate to their size. Let’s look at two examples. General Data Protection Regulation (GDPR) The EU General Data Protection Regulation (GDPR) applies to every person and organization operating in the EU or targeting EU residents. It sets down minimum requirements for information security and privacy. In particular, covered organizations must: Analyze and mitigate security risks Encrypt, pseudonymize, or anonymize personal information as appropriate Control access to premises, equipment, and digitized personal information You can learn more about the GDPR in this blog: GDPR: 13 Most Asked Questions + Answers The GDPR offers some flexibility, accounting for the current state of technology, and the costs involved in securing personal information. However, all organizations must implement “appropriate technical and organizational measures.” California Consumer Privacy Act (CCPA)  The California Consumer Privacy Act (CCPA) applies to certain businesses that collect California residents’ personal information. It requires that businesses take “reasonable security measures” to secure personal information in their control. For CCPA-covered businesses, implementing a minimum reasonable security level means complying with the 20 Critical Security Controls from the Center for Internet Security (CIS). The controls include: Email and web browser protection Account monitoring and controls Penetration testing A business’s security measures may be “appropriate to the nature of the information” that business controls — so highly sensitive personal information will require stronger security measures to protect it. You can learn more about the CCPA in this blog: CCPA FAQs: Your Guide to California’s New Privacy Law. Sector-Specific Regulations Certain industries handle particularly sensitive information, and there are rules that govern how they protect and store that data. Health Insurance Portability and Accountability Act (HIPAA) The US Health Insurance Portability and Accountability Act (HIPAA) applies to healthcare providers and businesses that handle protected health information (PHI).  The HIPAA “security rule” requires covered entities to implement administrative, technical, and physical safeguards over the PHI they control, including: Ensuring PHI remains confidential  Identifying and protecting against “reasonably anticipated threats” Ensuring all employees comply with HIPAA Organizations may vary in the extent to which they implement such security measures, accounting for: The size, complexity, and capabilities of the organization Its technical, hardware, and software infrastructure The costs of implementing security measures The likelihood and potential impact of risks to PHI Payment Card Industry Data Security Standard (PCI DSS) The Payment Card Industry Data Security Standard (PCI DSS) regulates how organizations handle credit and debit card data. Among other measures, PCI DSS requires organizations to: Maintain secure networks Encrypt cardholder data Regularly review security measures The number of annual transactions a card handler processes dictates the level of security measures they must implement. Level 1 — Over 6 million transactions per year Level 2 — 1-6 million transactions per year Level 3 —  20,000-1 million transactions per year Level 4 — Under 20,000 transactions per year Certification Programs Businesses wishing to demonstrate their security standards to their customers and business partners can undergo auditing with a certifying body.  ISO/IEC 27K Series The ISO/IEC 27K series provides standards for information security management, with programs covering network security, cybersecurity, and intrusion prevention.  ISO/IEC 27K is not a certification process in itself, but certain bodies are licensed to certify ISO/IEC 27K compliance. The series consists of a family of different standards that businesses can adopt as appropriate, such as: ISO/IEC 27000 — Information security management systems (overview) ISO/IEC 27005 — Information security risk management ISO/IEC 27033 — IT network security ISO/IEC 27040 — Storage security GDPR Certification GDPR certification is available for organizations that wish to publicize their GDPR compliance. Certification schemes must be approved by the European Data Protection Board or a national Data Protection Authority, such as the UK Information Commissioner’s Office. GDPR certification schemes can be general, applying to all areas of an organization’s GDPR compliance, or specific to an area of GDPR compliance, such as: Secure storage of personal information Access controls Internal policies and procedures You can see Tessian’s certifications on this page: Tessian Integrations, Compatibility, and Partnerships. 
What’s More Important: Security or Compliance? It’s not possible to say whether security is more important than compliance, or vice-versa. Security and compliance go hand-in-hand. If you neglect compliance, you may find your company is in breach of data security law — even if you take reasonable steps to secure sensitive information. Without understanding your compliance obligations, you can never be sure you’ve got everything covered. Likewise, suppose you neglect security, and take a mechanical, “bare minimum” approach to compliance. In that case, you’re putting your company at risk of data breaches, reputational damage, and private legal claims from your customers and employees. Our advice? Take an overarching approach to security and compliance by understanding the risks to your company’s information and your legal and regulatory obligations.
Compliance Data Exfiltration DLP Spear Phishing
August Cybersecurity News Roundup
By Maddie Rosenthal
28 August 2020
The end of the month means another roundup of the top cybersecurity headlines. Keep reading for a summary of the top 12 stories from August. Bonus: We’ve included links to extra resources in case anything piques your interest and you want to take a deeper dive. Did we miss anything? Email [email protected] Russian charged with trying to recruit Tesla employee to plant malware  Earlier this week, news broke that the FBI had arrested Egor Igorevich Kriuchkov – a 27-year-old Russian citizen – for trying to recruit a fellow Tesla employee to plant malware inside the Gigafactory Nevada. The plan? Insert malware into the electric car maker’s system, causing a distributed denial of service (DDos) attack to occur. This would essentially give hackers free rein over the system.  But, instead of breaching the network, the Russian-speaking employee turned down Egor’s million-dollar offer (to be paid in cash or bitcoin) and instead worked closely with the FBI to thwart the attack. Feds warn election officials of potentially malicious ‘typosquatting’ websites Stories of election fraud have dominated headlines over the last several months. The latest story involves suspicious “typosquatting” websites that may be used for credential harvesting, phishing, and influence operations.
While the FBI hasn’t yet identified any malicious incidents, they have found dozens of illegitimate websites that could be used to interfere with the 2020 vote.   To stay safe, make sure you double-check any URLs you’ve typed in and never input any personal information unless you trust the domain.  Former Google engineer sent to prison for stealing robocar secrets An Insider Threat at Google who exfiltrated 14,000 files five years ago has been sentenced to 18 months in prison. The sentencing came four months after Anthony Levandowski plead guilty to stealing trade secrets, including diagrams and drawings related to simulations, radar technology, source code snippets, PDFs marked as confidential, and videos of test drives.  He’s also been ordered to pay more than $850,000. Looking for more information about the original incident? Check out this article: Insider Threats: Types and Real-World Examples. All the information you need is under Example #4. For six months, security researchers have secretly distributed an Emotet vaccine across the world Emotet – one of today’s most skilled malware groups – has caused security and IT leaders headaches since 2014.  But, earlier this year, James Quinn, a malware analyst working for Binary Defense, discovered a bug in Emotet’s code and was able to put together a PowerShell script that exploited the registry key mechanism to crash the malware. According to ZDNet, he essentially created “both an Emotet vaccine and killswitch at the same time.” Working with Team CYMRU, Binary Defense handed over the “vaccine” to national Computer Emergency Response Teams (CERTs), which then spread it around the world to companies in their respective jurisdictions. Online business fraud down, consumer fraud up New research from TransUnion shows that between March and July, hackers have started to change their tactics. Instead of targeting businesses, they’re now shifting their focus to consumers. Key findings include: Consumer fraud has increased 10%, while business fraud has declined 9% since the beginning of the pandemic Nearly one-third of consumers have been targeted by COVID-19 related fraud Phishing is the most common method used in fraud schemes You can read the full report here. FBI and CISA issue warning over increase in vishing attacks A joint warning from the Federal Bureau of Investigations (FBI) and Cybersecurity Infrastructure Security Agency (CISA) was released in mid-August, cautioning the public that they’ve seen a spike in voice phishing attacks (known as vishing).  They’ve attributed the increase in attacks to the shift to remote working. Why? Because people are no longer able to verify requests in-person. Not sure what vishing is? Check out this article, which outlines how hackers are able to pull off these attacks, how you can spot them, and what to do if you’re targeted.  TikTok sues U.S. government over Trump ban In last month’s cybersecurity roundup, we outlined why India had banned TikTok and why America might be next. 30 days later, we have a few updates. On August 3, President Trump said TikTok would be banned in the U.S. unless it was bought by Microsoft (or another company) before September 15. Three days later, Trump signed an executive order barring US businesses from making transactions with TikTok’s parent company, ByteDance. The order will go into effect 45 days after it was signed. A few weeks later, ByteDance filed a lawsuit against the U.S. government, arguing the company was denied due process to argue that it isn’t actually a national security threat. In the meantime, TikTok is continuing its sales conversations with Microsoft and Oracle. Stay tuned next month for an update on what happens in the next 30 days. A Stanford deception expert and cybersecurity CEO explain why people fall for online scams According to a new research report – The Psychology of Human Error – nearly half of employees have made a mistake at work that had security repercussions. But why? Employees say stress, distraction, and fatigue are part of the problem and drive them to make more mistakes at work, including sending emails to the wrong people and clicking on phishing emails.  And, as you might expect, the sudden transition to remote work has only added fuel to the fire. 57% of employees say they’re even more distracted when working from home.  To avoid making costly mistakes, Jeff Hancock, a professor at Stanford, recommends taking breaks and prioritizing self-care. Of course, cybersecurity solutions will help prevent employees from causing a breach, too. University of Utah pays $457,000 to ransomware gang On August 21, the University of Utah posted a statement on its website saying that they were the victim of a ransomware attack and, to avoid hackers leaking sensitive student information, they paid $457,000. But, according to the statement, the hackers only managed to encrypt .02% of the data stored on their servers. While the University hasn’t revealed which ransomware gang was behind the attack, they have confirmed that the attack took place on July 19, that it was the College of Social and Behavioral Sciences that was hacked, and that the university’s cyber insurance policy paid for part of the ransom. Verizon analyzed the COVID-19 data breach landscape This month, Verizon updates its annual Data Breach Landscape Report to include new facts and figures related to COVID-19. Here some of the trends to look out for based on their findings: Breaches caused by human error will increase. Why? Many organizations are operating with fewer staff than before due to either illness or layoffs. Some staff may also have limitations because of new remote working set-ups. When you combine that with larger workloads and more distractions, we’re bound to see more mistakes. Organizations should be especially wary of stolen-credential related hacking, especially as many IT and security teams are working to lock down and maintain remote access.  Ransomware attacks will increase in the coming months. SANS Institute Phishing Attack Leads to Theft of 28,000 Records  The SANS institute – a global cybersecurity training and certifications organization – revealed that nearly 30,000 accounts of PII were compromised in a phishing attack that convinced an end-user to install a self-hiding and malicious Office 365 add-on. While no passwords or financial information were compromised and all the affected individuals have been notified, the breach goes to show that anyone – even cybersecurity experts – can fall for phishing scams. The cybersecurity skills shortage is getting worse In March, Tessian released its Opportunity in Cybersecurity Report which set out to answer one (not-so-simple) question: Why are there over 4 million unfilled positions in cybersecurity and why is the workforce twice as likely to be male than female? The answer is multi-faceted and has a lot to do with a lack of knowledge of the industry and inaccurate perceptions of what it means to work in cybersecurity.  The bad news is, it looks like the problem is getting worse. A recent report, The Life and Times of Cybersecurity Professionals 2020, shows that only 7% of cybersecurity professionals say their organization has improved its position relative to the cybersecurity skills shortage in the last several years. Another 58% say their organizations should be doing more to bridge the gap. What do you think will help encourage more people to join the industry?  That’s all for this month! Keep up with us on social media and check our blog for more updates.
Compliance Data Exfiltration DLP Human Layer Security
You Sent an Email to the Wrong Person. Now What?
By Maddie Rosenthal
04 August 2020
So, you’ve sent an email to the wrong person. Don’t worry, you’re not alone. According to Tessian research, over half (58%) of employees say they’ve sent an email to the wrong person.  We call this a misdirected email and it’s really, really easy to do. It could be a simple spelling mistake, it could be the fault of Autocomplete, or it could be an accidental “Reply All”. But, what are the consequences of firing off an email to the wrong person and what can you do to prevent it from happening?  We’ll get to that shortly. But first, let’s answer one of the internet’s most popular (and pressing) questions: Can I stop or “un-send” an email?
Can I un-send an email? The short (and probably disappointing) answer is no. Once an email has been sent, it can’t be “un-sent”. But, with some email clients, you can recall unread messages that are sent to people within your organization.  Below, we’ll cover Outlook/Office 365 and Gmail. Recalling messages in Outlook & Office 365 Before reading any further, please note: these instructions will only work on the desktop client, not the web-based version. They also only apply if both you (the sender) and the recipient use a Microsoft Exchange account in the same organization or if you both use Microsoft 365.  In layman’s terms: You’ll only be able to recall unread emails to people you work with, not customers or clients. But, here’s how to do it. Step 1: Open your “Sent Items” folder Step 2: Double-click on the email you want to recall Step 3: Click the “Message” tab in the upper left-hand corner of the navigation bar (next to “File”) → click “Move” → click “More Move Actions” → Click “Recall This Message” in the dropdown menu Step 4: A pop-up will appear, asking if you’d like to “Delete unread copies of the message” or “Delete unread copies and replace with a new message” Step 5: If you opt to draft a new message, a second window will open and you’ll be able to edit your original message While this is easy enough to do, it’s not foolproof. The recipient may still receive the message. They may also receive a notification that a message has been deleted from their inbox. That means that, even if they aren’t able to view the botched message, they’ll still know it was sent.  More information about recalling emails in Outlook here. Recalling messages in Gmail Again, we have to caveat our step-by-step instructions with an important disclaimer: this option to recall messages in Gmail only works if you’ve enabled the “Delay” function prior to fat fingering an email. The “Delay” function gives you a maximum of 30 seconds to “change your mind” and claw back the email.  Here’s how to enable the “Delay” function. Step 1: Navigate to the “Settings” icon → click “See All Settings” Step 2: In the “General” tab, find “Undo Send” and choose between 5, 10, 20, and 30 seconds.  Step 3: Now, whenever you send a message, you’ll see “Undo” or “View Message” in the bottom left corner of your screen. You’ll have 5, 10, 20, or 30 seconds to click “Undo” to prevent it from being sent.  Note: If you haven’t set-up the “Delay” function, you will not be able to “Undo” or “Recall” the message.  More information about delaying and recalling emails in Gmail here. So, what happens if you can’t recall the email? We’ve outlined the top six consequences of sending an email to the wrong person below. 
What are the consequences of sending a misdirected email? We asked employees in the US and UK what they considered the biggest consequences of sending a misdirected email. Here’s what they had to say. !function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script"),d=o[0],r=/^http:/.test(e.location)?"http:":"https:";if(/^\/{2}/.test(i)&&(i=r+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var a=e.createElement("script");a.async=1,a.id=s,a.src=i,d.parentNode.insertBefore(a,d)}}(document,0,"infogram-async","//e.infogram.com/js/dist/embed-loader-min.js"); Importantly, though, the consequences of sending a misdirected email depend on who the email was sent to and what information was contained within the email. For example, if you accidentally sent a snarky email about your boss to your boss, you’ll have to suffer red-faced embarrassment (which 36% of employees were worried about). If, on the other hand, the email contained sensitive customer, client, or company information and was sent to someone outside of the relevant team or outside of the organization entirely, the incident would be considered a data loss incident or data breach. That means your organization could be in violation of data privacy and compliance standards and may be fined. But, incidents or breaches don’t just impact an organization’s bottom line. It could result in lost customer trust, a damaged reputation, and more. Let’s take a closer look at each of these consequences. Fines under compliance standards. Both regional and industry-specific data protection laws outline fines and penalties for the failure to implement effective security controls that prevent data loss incidents. Yep, that includes sending misdirected emails. Under GDPR, for example, organizations could face fines of up to 4% of annual global turnover, or €20 million, whichever is greater.  And these incidents are happening more often than you might think. Misdirected emails are the number one security incident reported to the Information Commissioner’s Office (ICO). They’re reported 20% more often than phishing attacks. You can read more about the biggest fines under GDPR so far in 2020 on our blog. Lost customer trust and increased churn. Today, data privacy is taken seriously… and not just by regulatory bodies.  Don’t believe us? Research shows that organizations see a 2-7% customer churn after a data breach and 20% of employees say that their company lost a customer after they sent a misdirected email. A data breach can (and does) undermine the confidence that clients, shareholders, and partners have in an organization. Whether it’s via a formal report, word-of-mouth, negative press coverage, or social media, news of lost – or even misplaced – data can drive customers to jump ship. Revenue loss. Naturally, customer churn + hefty fines = revenue loss. But, organizations will also have to pay out for investigation and remediation and for future security costs. How much? According to IBM’s latest Cost of a Data Breach report, the average cost of a data breach today is $3.86 million. Damaged reputation. As an offshoot of lost customer trust and increased customer churn, organizations will – in the long-term – also suffer from a damaged reputation. Like we’ve said: people take data privacy seriously. That’s why, today, strong cybersecurity actually enables businesses and has become a unique selling point in and of itself. It’s a competitive differentiator. Of course, that means that a cybersecurity strategy that’s proven ineffective will detract from your business. But, individuals may also suffer from a damaged reputation or, at the very least, will be embarrassed. For example, the person who sent the misdirected email may be labeled careless and security leaders might be criticized for their lack of controls. This could lead to…. Job loss. Unfortunately, data breaches – even those caused by a simple mistake – often lead to job losses. It could be the Chief Information Security Officer, a line manager, or even the person who sent the misdirected email.  It goes to show that security really is about people. That’s why, at Tessian, we take a human-centric approach and, across three solutions, we prevent human error on email, including accidental data loss via misdirected emails.
How does Tessian prevent misdirected emails? Tessian turns an organization’s email data into its best defense against human error on email. Powered by machine learning, our Human Layer Security technology understands human behavior and relationships, enabling Tessian Guardian to automatically detect and prevent anomalous and dangerous activity like emails being sent to the wrong person. Importantly, Tessian’s technology automatically updates its understanding of human behavior and evolving relationships through continuous analysis and learning of the organization’s email network.  That means that if, for example, you frequently worked with “Jim Morris” on one project but then stopped interacting with him over email, Tessian would understand that he probably isn’t the person you meant to send your most recent (highly confidential) project proposal to. Crisis averted.  Interested in learning more about how Tessian can help prevent accidental data loss and data exfiltration in your organization? You can read some of our customer stories here or book a demo.
Compliance
Ultimate Guide to Data Protection and Compliance in Financial Services
03 August 2020
Over the last few decades – and driven by the digital transformation – compliance has become a core part of the financial services sector. But, today, security, compliance, and legal teams aren’t just ensuring that regulatory obligations are met because they’re legally compelled to. Compliance plays an important role in protecting firms’ reputations. The problem is, compliance is broad and multi-faceted. There are many ways in which a firm can fall out of compliance, especially in sensitive industries such as finance. Why? Because one of the leading causes of non-compliance is data loss and, according to one report, 62% of breached data came from financial services in 2019.  You can learn more about the frequency of data loss incidents in financial services here: The State of Data Loss Prevention in the Financial Services Sector.  The regulatory framework When it comes to privacy and data security, the financial services sector has a pretty strict regulatory environment, especially when compared to other sectors and in major markets like the United States, the European Union, and the United Kingdom, where financial services compliance is governed by intricate regulatory frameworks.  That’s why we’ve put this article together. We’ve compiled a list of the three compliance standards most relevant to those working in financial services and have outlined the key requirements of each, as well as exactly what organizations are affected.  Looking for something specific? Click the text below to jump down the page. 
Gramm-Leach-Bliley Act (GLBA) The US arguably has the most complex regulatory regime for financial products and services. Why? There’s a long list of reasons, including national politics and the country’s federalist nature. But, the federal GLBA is the “big one” that covers all “financial institutions,” a broad definition that includes any business that is “significantly engaged in providing financial products or services.”  These include: Banks and related services; Investment firms; Non-bank lenders (e.g. interest-free finance, payday loans); Mortgage brokers; and Real estate appraisers. What are the main compliance obligations under the GLBA?  The primary compliance obligation for firms under the GLBA is the requirement to develop a written security program that outlines how they safeguard consumer information. It is a fairly flexible obligation that requires firms to: Designate an employee to manage the program; Identify risks in operational areas and assess relevant security safeguards; and Adjust the program as risk factors develop.  Although the GLBA is flexible, financial services firms are expected to implement basic protections against cybersecurity risks. These include encrypting customer information and implementing solutions that prevent inbound and outbound threats. Find out why protecting data on email is especially important.  What are the penalties for non-compliance? GLBA violations can attract hefty penalties, including fines of up to $100,000 per violation and prison time of up to five years.  Financial Services and Markets Act 2000 (FSMA) In the UK, the primary piece of legislation that governs the regulated financial services market is the Financial Services and Markets Act 2000. This piece of legislation also establishes regulatory bodies like the Financial Conduct Authority (FCA), which is responsible for the regulation of conduct in wholesale financial markets.  The FCA’s objectives include: Ensuring market confidence and financial stability; Promoting public awareness; Protecting consumers (i.e. from instances of data loss); and Reducing financial crime.  Prior to the FSMA, compliance was viewed as a low priority within firms. The FSMA was introduced to act as a full, accurate, and accessible document that outlines the roles and responsibilities of the financial services and market industries.  Who does the FSMA apply to? Any authorized firm conducting regulated financial activities such as deposit taking, insurance-related activities, financing activities, and consumer credit activities.  What requirements exist concerning compliance under the FSMA? Regulated firms must have systems in place to ensure they are compliant with applicable laws. Like many other compliance standards though, The Act does not specify which systems. But, if we’re talking specifically about firms’ obligation to prevent data loss, DLP solutions are a good place to start. We have plenty of DLP resources, including an overview of what data loss prevention is, how it works, and an overview of current DLP solutions.  Controls, systems, and compliance programs can vary depending on the size of the firm and its regulated activities.  There are several ways that compliance best practice can be conveyed to firms, including through thematic reviews by the FCA.  General Data Protection Regulation (GDPR) If you hadn’t heard of the other two compliance standards on this list, you’ve almost certainly heard of this one. At the time of the GDPR’s introduction in 2018, it was the largest change to data protection legislation in almost 20 years and it’s where financial services firms around the world can find some of the most thorough guidance on their compliance obligations.  It gives regulators the power to impose hefty fines to organizations that are not compliant, and it has shaken up many industries where wide-scale privacy changes are required to achieve compliance.  Read more about the biggest fines issues so far in 2020 on our blog. What is the GDPR for? The GDPR was established amid growing concerns around the safety of personal data and the need to protect it from hackers, Insider Threats, and unethical use. It effectively puts individuals back in control of their data, giving them the power to control how businesses use it. You must be able to move or dispose of this data if requested.  Still scratching your head? We’ve answered 13 FAQs about GDPR.  How does the GDPR impact the financial services industry?  The GDPR impacts the sector in a few distinct ways.  You must have client consent The GDPR says that you must explicitly gain consent to gather personal data and say why you are collecting it. You must also gain additional consent if you wish to share this information. Personal information refers to anything that could be used to identify an individual, such as: Names Email addresses Social media profiles IP addresses You have end-to-end accountability for data IT systems are at the core of any financial firm and constantly have data passing through them.  The GDPR requires firms to understand all the dataflow across their organization and reduce exposure to external vendors and parties. Firms must also ensure vigilance when sharing data, particularly across borders. In layman’s terms: the GDPR holds businesses accountable for safeguarding customer data. Organizations are obligated to take steps to ensure data isn’t disclosed, either intentionally or accidentally, where there isn’t a legitimate reason.  Did you know that misdirected emails are the number one data loss incident reported to the Information Commissioner’s Office (ICO)? Learn more about the consequences of “fat fingering” an email here. Your clients have a right to erasure GDPR gives your clients the right to ask for their data to be removed without the need for any outside authorization. Financial institutions can keep some data to ensure compliance with other regulations (for example, information relevant to credit records) but in all other circumstances, data must be destroyed when requested.  You are bound by strict protocols in the event of a loss Before GDPR, firms could adopt their own protocols in the event of a data breach. Now, GDPR compels firms to report any data breaches, no matter how big or small, to the relevant regulatory or supervisory authority within 72 hours, such as the ICO. The notification must: Contain relevant details regarding the nature of the breach; The approximate number of people impacted; and Contact details of the firm’s Data Protection Officer (DPO).  Impacted clients must also be notified of the breach, the potential outcome, and any remediation “without undue delays”. That’s one reason why a data breach can negatively impact reputation and customer trust. But, those are the only consequences.  What are the penalties for non-compliance? Penalties for non-compliance are very harsh and can be as severe as a fine of 4% of annual global turnover or €20 million—whichever is higher. And they’re being handed out more often now too, with over 36 fines issued in March 2020 alone. That’s a new record.  That means ensuring compliance is essential.  Tessian helps financial services firms stay compliant Financial services firms are under increased pressure to monitor and control their data and restrict the movement of it to prevent both accidental and deliberate loss.  Of all the places where data can be lost, email represents one of the most common. In fact, 90% of data breaches begin with email. Why? Because it’s a threat vector for both inbound and outbound threats like phishing, data exfiltration, and misdirected emails.  Tessian prevents all these threats using machine learning by monitoring and applying human understanding to email behavior. Across three solutions, Tessian analyzes email data to understand and interpret communications and steps in when it detects that something’s “off”. For example, if an employee sends company data to a personal email account or if someone receives an email with a suspicious domain that could be a phish. Best of all, Tessian works quietly in the background, doesn’t disrupt workflow, and helpful, in-the-moment warnings reinforce training and remind employees of existing policies. That means it’s good for everyone. Learn more about how Tessian has been used by financial institutions such as Evercore, Man Group, and Premier Asset Management to proactively protect customer data and achieve full compliance. You can read more customer stories here.
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