Many companies only learn of breaches when notified by third party.
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Most Data Breaches Discovered Too Late, Study Says
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Benjamin Wright Tue, 2008-06-17 23:21
The Verizon study spotlights an important topic for debate. Legally speaking, what is "reasonable security?" FTC punished TJX for not having it, but I argue FTC was wrong. Verizon says 9 of 10 data breaches could have been avoided if "reasonable security" were present. That implies 9 in 10 breach victims were in violation of law. The study's outlook is that the solution to identity theft is locking down corporate data. But a security consultant/solution provider like this Verizon unit naturally sets a high bar for what is reasonable. And when Verizon evaluates if reasonable security could have prevented a break-in, it does so with benefit of hindsight. Yet the study goes on to say that in modern systems knowing where all your data reside is "an extremely complex challenge." In other words, the sheer problem of locating data (so you can apply security) is very expensive, and mistakes by data-holders who act in good faith are easy. The reasonable measures expected by FTC and Verizon are extravagantly hard to implement in practice. Hence, the portion of incidents preventable by FTC/Verizon's reasonable procedures is much lower than 90%. We need to focus more attention on other solutions to identity theft. What do you think? --Ben http://hack-igations.blogspot.com/2008/03/ftc-treats-tjx-unfairly.html
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