SOX compliance costs fell in 2005
Overall expenses fell by 6% for large companies and by 16% for medium and small firms, but audit fees rose by 22% for small businesses. According to estimates by the InfoWatch analytical center, next year will see further reductions in the cost of SOX compliance despite the possibility of an increase in audit fees.
4M customer details exposed: data leak at Japan's KDDI
Insiders have stolen a database containing the private details of customers from Japan’s second-largest mobile phone operator. Two of their accomplices, who tried to blackmail KDDI by threatening to reveal the breach before a major shareholder meeting, have been arrested by Tokyo police. According to experts at InfoWatch, KDDI reacted properly to the blackmail threats, but the corporation should have thought of protecting against insider activity earlier.
Data breach at U.S. Energy Department affects 1,500 employees
The theft of private data belonging to 1,500 employees at the nuclear-weapons unit of the U.S. Energy Department went unreported for nine months it has been revealed. According to experts at InfoWatch, such organizations ought to have an automated system of leakage protection so as not to depend completely on their employees.
Damage in biggest ever data leak to exceed 25 billion dollars
The U.S. military veterans affected by a recent data breach have organized a coalition and filed a collective lawsuit seeking $26.5 billion from the federal government. Experts at the InfoWatch analytical center believe the law courts are unlikely to satisfy the demands in full, but there is a distinct possibility that the government could end up paying in the region of $13 billion.
SOX could become reality for LSE
If the London Stock Exchange comes under U.S. ownership, companies registered on the LSE will not be subject to Sarbanes-Oxley. However, in the longer term such a takeover could “theoretically” make it possible, the head of the FSA said. According to the experts at InfoWatch, the British Combined Code is not so different from SOX, suggesting the U.S. law would quickly take root across the Atlantic.
U.S. call center Accenture responsible for data breach
A U.S. call center that listed the wrong fax number on a form was responsible for private information being sent to completely the wrong people for three months. According to experts at InfoWatch, it is a common problem, making the existence of effective IT security systems at call centers an important selling point in the outsourcing sector.
Laptop theft exposes Royal Ahold to data breach
An Electronic Data Systems employee has lost a laptop containing an unspecified amount of private data on former and current Royal Ahold workers. The computer was checked into the cargo hold on a flight from Philadelphia, but failed to reappear in Boston. EDS has stated that their security policy prohibits their laptops from being checked in as baggage on flights, but in the opinion of experts at InfoWatch it would have been much easier to simply encrypt the data.
Theft of YMCA laptop compromises private data of 68K
A laptop with the Social Security numbers and credit card details of 68,000 YMCA members has been stolen from one of the organization’s offices. YMCA officials have stressed that the data was “behind two walls of security”, but would not elaborate. According to experts at InfoWatch, however, the YMCA would have told the press and those affected if the information had been encrypted. So, it seems likely that all 68,000 members now face the risk of identity theft.
Outsourcing leak affects 1.3M borrowers
Hummingbird Ltd. has lost the private details of 1.3 million student loan clients that were outsourced from TG. The data was on an unspecified piece of equipment that was subsequently lost. Experts at InfoWatch point out that this is a typical example of a data breach occurring during outsourcing. The client company should have made sure that the contractor was capable of ensuring the security of its confidential data. In the near future this factor is likely to become an important selling point for outsourcing companies.
Ernst & Young loses private details on 243K Hotels.com clients
Ernst & Young has lost a laptop containing the private details of 243,000 Hotels.com clients. The computer was stolen from a car belonging to one of the accounting firm’s employees. It has since been reported that Ernst & Young is taking measures to encrypt all the data on its portable computers. According to experts at InfoWatch, the company should have applied security measures long ago and risks doing irreparable damage to its reputation.
