Tag Archives: disclosure policy

Cyber Security – Current Policies Not working

An update to the Heartland breach:

The Heartland breach also showed that in spite of the adoption of more stringent standards and tougher oversight by banks and credit card companies, consumers are still vulnerable. All this is happening after credit card companies and merchants spent over $2 billion on establishing the Payment Card Industry standards, Ms. Litan said. “And yet the breaches continue and they get more serious.”

Standards are promoted by both industry and DHS as the means to manage the issue.  So, what do you do when standards are not enough?

More from the Post on how long it took to discover how the breach was made:

Robert H.B. Baldwin Jr., president and chief financial officer of Heartland Payment Systems, said the company, which processes payments for more than 250,000 businesses, began receiving fraudulent activity reports from MasterCard and Visa in October.

Heartland called the U.S. Secret Service, which investigates financial crimes, and hired two breach forensics teams to investigate. But Baldwin said it wasn’t until last week that investigators uncovered the source of the breach: A piece of malicious software on the company’s processing network was recording payment card data as it was being sent to Heartland by thousands of the company’s retail clients.

Baldwin said Heartland does not know how the software got there, how long it was in place, or how many accounts may have been compromised. The stolen data includes names, credit and debit card numbers and expiration dates.

According to the WSJ:

More than 40 states have laws that require businesses to disclose when sensitive information may have been accessed by an unauthorized party. In 2008, 656 such incidents were reported, according to the nonprofit Identity Theft Resource Center, up from 446 in 2007.

Leave a comment

Filed under cybersecurity