More Data Security Problems Expected in 2008

Experts say that a record number of data security breaches occurred in 2007, and that the problem is likely to get worse this year. In 2007, an estimated 79 million to 162 million consumer records were compromised. By "compromised" we mean that data thieves got their hands on critical information, including names, social security numbers, account numbers, PIN numbers, and more.

Data security is such a problem because hackers are breaking into systems even faster than security professionals can lock down the data. Experts say a big part of the problem is that security personnel are largely reactive, merely responding to security breaches and the latest viruses and attack programs. What's needed is for the security people to start being more proactive and make systems harder to penetrate from the get-go.

But in the meantime, business owners are still on the hook for protecting their customers' data. Imagine what a data loss would mean for your business... The initial theft of data and the remediation could be expensive all by itself. But then imagine what a security breach like this could do to your relationships with your customers. Would they still trust you enough to do business with you?

Utilize security professionals to make sure that your data storage systems are as secure as possible. Check up on your employees to make sure they're not misusing data or their access to your computer systems. Be as proactive as possible to protect your customers' data because those intent on stealing your information aren't going to stop anytime soon.


Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.