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Cybersecurity Risk Management – Financial Services Entities Required to Act

Oct 20 2015

It seems clear following the release in March this year of ASIC Report 429 Cyber Resilience, that all Australian Financial Services Licensees and superannuation funds are currently required to include in their risk management framework measures aimed at addressing the risks posed by cybersecurity breaches.

In addressing the risks ASIC recommends that the U.S. National Institute for Standards and Technology (NIST) framework is a relevant risk management tool. The NIST standards set out the key objectives of an appropriate risk framework:

identify the critical assets and governance processes
protect critical assets
detect breaches and incidents
responses to breaches and incidents
recovery and reinstatement of systems.

You can download a copy of the framework here

These objectives will need to be merged into the existing financial services policy frameworks which financial services entities already have in place.

Cyber Insurance is Only a (Small) Part of the Solution

Oct 13 2015

By Jim Bulling

Insurers in the U.S. and Europe are forecasting that the market for cyber insurance will grow exponentially in the next five years as more companies look to beef up protection against malicious cyber attacks.

While the insurers see a significant new market emerging, there are signs that they are wary of the risks and this is impacting on premiums and the limitations being placed on cover. There are a number of insurers offering cyber cover in the Australian market and companies looking for additional protection would be well served by closely examining the terms of the proposed cover to ensure it extends to the more significant cyber risks and does so in a way that complements rather than overlaps the existing insurance program which an organisation has in place (eg Public Indemnity , Directors and Officers Liability, Crime and Property).

It is also worth noting that insurance should only be seen as one component of an organisation’s risk management processes around cybersecurity. A leading insurance broker has suggested that investment in technology is the most important factor in reducing the risk profile while the contribution from insurance is much more modest and to be effective needs to be accompanied by investment in technology.

New Data Retention Laws Implementation Deadline

Oct 12 2015

By Cameron Abbott and Melanie Long

From 13 October 2015, telecommunications service providers that use communications infrastructure in Australia to provide any of their services may be required to retain and secure certain data for two years. The new obligations under the Telecommunications (Interception and Access) Amendment (Data Retention) Act 2015 (Cth) apply to licensed carriers, carriage service providers and internet service providers. However, some services are specifically excluded including, for example, broadcasting services. The data retention obligations will apply regardless of the size of the company and/or its customer base.

Broadly, the type of data that must be retained includes:

the source and destination of a communication
the date, time and duration of a communication
communication type
location of communications equipment.

Quick Tips for Entities Looking to Protect Against Cyber Breaches

Oct 08 2015

By Jim Bulling

Research in Australia and overseas suggests that most cyber breaches can either be prevented or the impact of any attack can be significantly limited by a range of low cost and easy to implement measures. These include the following:

Username and password standards should be sophisticated.
Administrative and privileged access should be controlled.
Undesirable applications should removed.
Automated patching tools and processes should be used.
Data should be backed up regularly.
Access to mobile devices should require authentication and data should be encrypted.
Anti virus software and filters should be used.

Research released by the Australian Defence Signals Directorate (DSD) indicates that at least 85% of the cyber intrusions that the DSD has responded to would have been mitigated had organisations implemented the above strategies.

European Court of Justice Declares EU/US Safe Harbour Decision Invalid

Oct 07 2015

By Cameron Abbott and Melanie Long

The European Court of Justice has declared a decision by the European Commission on the legitimacy of the EU/US safe harbour scheme (safe harbour decision), invalid. In the wake of the Snowden scandal, Austrian citizen, Maximilian Schrems, lodged a complaint against Facebook with the Data Protection Commissioner in Ireland (the location of Facebook’s European headquarters). The Irish supervisory authority rejected Mr Schrems’ complaint on the basis of the safe harbour decision. In invalidating the safe harbour decision, the European Court of Justice declared that “legislation permitting the public authorities to have access on a generalised basis to the content of electronic communications must be regarded as compromising the essence of the fundamental right to respect for private life.” Further, that the safe harbour scheme, by not providing for an individual to pursue legal remedies in order to have access to personal data relating to them, or to obtain the rectification or erasure of such data, compromised, “the essence of the fundamental right to effective judicial protection, the existence of such a possibility being inherent in the existence of the rule of law.”

The consequence of this decision is that the EU/US safe harbour scheme is contrary to the Data Protection Directive, which provides that the transfer of personal data to a third country may, in principle, take place only if that third country ensures an adequate level of protection of the data.

The European Court of Justice’s press release can be found here.

To read the full judgment of the European Court of Justice click here.

AMCHAM Cyber Security Panel Luncheon

Sep 22 2015

K&L Gates partner, Cameron Abbott will feature as part of panel of professionals active in the Cyber industry at an American Chamber of Commerce (AMCHAM) luncheon on Wednesday 28 October 2015.

The panel will discuss developments in the world of cyber security, the intent of the mandatory data-breach scheme and the far reaching impact that cyber security breaches can have on a business’s reputation and value.

The session will be moderated by Dr Tobias Feakin, Senior Analyst and Director, International Cyber Policy Centre.

For full details of the event and to register click here

Report finds finance and HR departments the greatest cybersecurity threats to organisations

Sep 04 2015

By Cameron Abbott and Melanie Long

According to recent research conducted on behalf of cybersecurity firm Clearswift, finance and HR departments represent the biggest cybersecurity threat to organisations. The study polled more than 4500 information technology decision makers, security professionals and employees in the US, UK, Germany and Australia and found that 46% of respondents believed that finance departments posed a security threat to their organisation. In addition, 42% of respondents believed the same of an organisation’s HR departments.

Ashley Madison Hackers Release User Data

Aug 29 2015

By Cameron Abbott and Melanie Long

On 19 August 2015 the group known as ‘The Impact Team’, who a month earlier hacked into online affair website Ashley Madison, made good on its threat and released a “data dump” of Ashley Madison users’ personal information. A second and larger release of stolen data occurred 2 days later and appears to have included emails sent by Noel Biderman, Ashley Madison’s founder and CEO of parent company Avid Life Media.

Following the release of the stolen data, acting Australian Information Commissioner, Timothy Pilgrim, announced the launch of an investigation into the breach which is to be conducted in liaison with the Office of the Privacy Commissioner of Canada (where Avid Life Media is based). On 28 August 2015 Noel Biderman stepped down from his role as CEO of Avid Life Media.

Read the ABC news’ article in relation to the first data release here.

ABC news’ article relating to second data release can be found here.

The Office of the Australian Information Commissioner’s press release relating to its investigation can be found here.

Ashley Madison Data Security Breach

Jul 19 2015

By Cameron Abbott and Melanie Long

On 19 July 2015 the Avid Life Media dating website Ashley Madison, which is aimed at married people who want to have an affair, was hacked by a group known as ‘The Impact Team’. The Impact Team has threatened to release users’ profiles if Ashley Madison and other Avid Life Media websites such as Established Men and Cougar life are not shut down. The Impact Team claims to have stolen the details (including names, addresses, credit card numbers and personal sexual fantasies) of over 37 million users.

The story was broken by Brian Krebs, a former cyber crime writer for the Washington Post, on his blog ‘Krebs on Security’. A link to his article, which includes a statement made by Avid Life Media following the hack, can be found here.

Australia Cyber Attack Statistics

Apr 01 2015

by Jim Bulling and Julia Baldi

New statistics show cyber attacks on Australian businesses increased by 20% in 2014.

See the ABC report here.

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