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Figure 2.3 |
We should note that the numbers reflect reported breaches. Many |
breaches aren’t reported, either because they don’t fit the requirement to |
report or because they are unknown. According to an estimate by the Online |
Trust Alliance, the actual number of security incidents is more than 20 |
times the number of reported breaches.86 Reported breaches are thus the tip |
of a much larger iceberg. |
Each year brings more bad news. Each year steals the crown for the most |
awful year for data breaches. Are there any records left that haven’t been |
compromised? Will we ever have a good year? |
Figure 2.4 |
THE COMMON PLOTS OF DATA BREACH STORIES |
If you are getting tired of hearing similar data breach stories over and over |
again, welcome to the world of data security. By now, you might have been |
hoping for something new. But, alas, to quote the eminent data breach |
expert, Yogi Berra, it has been “déjà vu all over again.” |
In a famous book, The Seven Basic Plots, Christopher Booker concludes |
that all stories use one of only seven plot structures.87 A similar book could |
be written about data breaches, which seem to follow a few basic patterns |
again and again. |
The Big Spend Wasn’t Enough |
Many organizations spent a lot of money on security yet still had big lapses |
in oversight. Throwing cash at the problem didn’t stop the breaches. |
Some organizations didn’t seem to care at all, but even those that did |
devote a lot of resources to security were lacking. They would buy |
expensive shiny armor, but then forget to put on key pieces like the |
breastplate. |
Human Error Opened the Door |
Many breaches were facilitated by human error. Humans fell for a phishing |
scam. Humans failed to patch vulnerable software promptly. Humans lost |
devices with data on them. Humans misconfigured servers. One of the |
major imbalances in the world of data security is that defenders need to |
constantly protect the entire perimeter—every entry point and vulnerability. |
Meanwhile attackers need just one entry point and only must be successful |
once. |
Vendors Were a Weak Link |
Many large organizations had sophisticated defenses, but hackers figured |
out that they had a big vulnerability—their vendors that had access to their |
computer system. The vendors, typically small- to medium-sized companies |
that provided ancillary services to larger companies, had much weaker |
security. This allowed hackers to break into the vendors, steal their |
credentials, and then use these credentials to break into a company’s |
computer system. |
Too Much Data Was Being Kept (and Stored Together) |
Many organizations were collecting data that they shouldn’t have been |
collecting or retaining it when they should have been deleting it. Breaches |
grew bigger and bigger, mainly because organizations increased the |
quantities of records they maintained. |
Organizations have been collecting and using data faster than they have |
been able to keep it secure—just like during the Industrial Revolution when |
factories sprouted up long before safety and pollution controls were |
introduced. Law professor Danielle Citron has called these bloated |
databases “reservoirs of danger”—an allusion to the precarious but |
profitable underregulated water dams during the Industrial Age.88 |
To make matters worse, many organizations stored the vast troves of |
data they were amassing all in one place. Because data wasn’t adequately |
segmented, once the hackers broke in, they could quickly hit the mother |
lode and access everything. |
Devices Always Seemed to Disappear |
Lost or stolen devices played a big role in breaches. Storywriter and |
playwright Anton Chekhov famously noted that if there is a gun in Act One |
of a play, it surely will be fired by Act Three. When personal data is loaded |
onto a portable device such as a laptop or a thumb drive, it is often lost or |
stolen. These thefts are a disaster if the data on them isn’t encrypted. |
Data Was Not Encrypted |
Many breaches involved failing to encrypt data. In a study from 2004, only |
15 percent of organizations had an enterprise-wide encryption strategy. By |
2014, 36 percent had such a strategy. Given the breach experience in the |
decade between 2004 and 2014, it is shocking that 64 percent still lacked a |
strategy.89 |
One Click Was All It Took |
Phishing played a big role in data breaches. For many breaches, all it took |
was one gullible employee to click, and the hackers were able to get inside. |
For large organizations with thousands of employees, the risk can be |
enormous. And yet, despite the huge risk, many organizations have not been |
focusing enough on phishing prevention. |
Lessons Weren’t Learned |
Despite the parade of horror stories, organizations have continued to make |
the same mistakes and have kept getting burned. Short-term thinking, as |
well as an it-won’t-happen-to-me attitude, have been pervasive. For |
example, despite the fact that human error is an aspect of most data |
breaches, many organizations have failed to train employees about data |
security. In the healthcare sector, despite HIPAA’s requirement to have |
security training, a quarter of U.S. healthcare employees have never |
received such training. It’s even worse in Canada, where 40 percent of |
employers in the health care sector do not receive training. Of those that do, |
it’s often not frequent enough—only 38 percent were trained annually.90 |
These stats are not from 2000 or 2005—they are from 2019, after years and |
years where the healthcare industry experienced relentless hacking attacks |
and security blunders. |
Breaches Often Involved Careless Simple Mistakes |
There is an even broader, more overarching lesson to be learned from the |
miserable past 15 years in data security. Most of the breaches involved |
rather small, overlooked mistakes. It can be easy to get caught up focusing |
on the Leviathan and miss the low-hanging fruit. This low-hanging fruit |
consists of rather simple and easy-to-fix vulnerabilities and bad practices. |
After reviewing more than 1,000 data breaches from 2018, the Online |
Trust Alliance (OTA) found that more than 95 percent could have been |