[HN Gopher] Despite decades of hacking attacks, companies leave ...
       ___________________________________________________________________
        
       Despite decades of hacking attacks, companies leave sensitive data
       unprotected
        
       Author : danso
       Score  : 123 points
       Date   : 2022-01-27 12:33 UTC (10 hours ago)
        
 (HTM) web link (www.propublica.org)
 (TXT) w3m dump (www.propublica.org)
        
       | asg101 wrote:
       | This is what happens when there are zero legal repercussions for
       | companies with sloppy data security. Regulatory capture strikes
       | again.
        
         | throwaway984393 wrote:
         | Literally the only reason any company invests actual time into
         | data security is HIPAA, GDPR and SOX. I keep wondering why
         | people haven't demanded more regulation after all their SSNs
         | got leaked
        
           | lbriner wrote:
           | Because there are very few regulations that can effectively
           | capture the intent of the rules instead of "tick boxes" that
           | might or might not mean very much.
           | 
           | Sure, "has firewall" is pretty effective but how do you
           | encapsulate how it should be managed effectively?
           | 
           | What happens when a system that was supposedly secure
           | installed by a previous employee fails? The company's fault?
           | How would they know? The employee's fault? Maybe they thought
           | it was good but were simply wrong?
           | 
           | I think a more fundamental approach would be to set mandatory
           | qualifications for IT workers/devs to ensure a base-level of
           | security/understanding. I know great web devs who don't know
           | about web app security - that shouldn't be possible. It
           | wouldn't be perfect but it would be easier to do
           | refreshers/regular testing for things that people should
           | already have learned, just like train drivers do.
        
             | shuntress wrote:
             | >there are very few regulations that can effectively
             | capture the intent of the rules instead of "tick boxes"
             | that might or might not mean very much.
             | 
             | >set mandatory qualifications for IT workers/devs to ensure
             | a base-level of security/understanding
             | 
             | What is it about this regulation that prevents it becoming
             | a useless box for IT pros to check?
        
             | fishpen0 wrote:
             | It also doesn't help that these frameworks are often dated
             | and don't align with modern best practices. Shops have the
             | choice to check the boxes and do things the dumb way or to
             | fill out page after page after page of special exception
             | documentation for their auditors. Most take the easy way.
             | 
             | And that doesn't even cover the part where PCI, SOCII, and
             | SOX all have various bits that contradict or are not
             | compatible with each other.
             | 
             | I've seen too many times where the head of security or IT
             | or whatever picks a pre-made package off a shelf from one
             | of the audit providers where they guarantee you will pass
             | all of them. Then they follow it like it's law ultimately
             | leading the swe/devop/sre groups to build out layers of
             | shadow it/ops to actually get productive work done.
             | 
             | My work primarily is to jump into startups after they are
             | acquired to make them "enterprise ready" for a bigger org
             | and its always a unique shit show dealing with the
             | preexisting war between their security/it orgs and their
             | actual product development orgs.
        
             | pevey wrote:
             | The same is true of legislation like SOX, which is very
             | much a checkbox approach and has not solved everything
             | related to financial reporting, by a longshot. But that
             | doesn't mean regulation would be totally useless. From the
             | article:
             | 
             | >The European Union has been operating under such a
             | standard since May 2018. Known as the General Data
             | Protection Regulation, the law requires companies to
             | implement security measures to protect sensitive personal
             | data and to promptly notify regulators and affected
             | consumers when it gets compromised. Violations of the data
             | protection rules can result in fines as high as 4% of a
             | business's annual worldwide sales. "You have to implement
             | cybersecurity measures if you process personal data, and if
             | you do not, you will have a legal problem," said Stefan
             | Hessel, a cybersecurity specialist in Germany at the
             | Reuschlaw law firm.
             | 
             | >Such measures may in fact make it harder for hackers to
             | ply their trade, if Pompompurin's postings are any
             | indication. In August he was asked on RaidForums why large
             | collections of personal data always seem to come from the
             | U.S. He responded: "Because its the easiest to get, other
             | countries have load of protection laws & shit, in the US
             | your address is basically public information no matter how
             | hard you try not to be put on lists like this."
        
             | Clubber wrote:
             | >Because there are very few regulations that can
             | effectively capture the intent of the rules instead of
             | "tick boxes" that might or might not mean very much.
             | 
             | So HIPAA fines a company up to $50,000 per patient when a
             | data leak occurs. They don't have to regulate _how_ to
             | secure the data, they just have to establish a fine with
             | teeth requiring that companies secure their data with
             | punishment when they don 't.
             | 
             | Of course if congress would apply HIPAA rules to everyone's
             | data and actually enforce it, data leaks for the most part
             | will stop.
             | 
             | https://www.hipaajournal.com/what-are-the-penalties-for-
             | hipa...
        
               | fishpen0 wrote:
               | Fines don't happen until they get caught. How long can a
               | company go and how much can they make before they get
               | caught? What happens to the executives? They just move on
               | pointing to their old success numbers.
               | 
               | I run internal audits for a large org as part of a strike
               | team when my company is acquiring smaller orgs. External
               | auditors are a joke and it's incredibly easy to slip
               | things by them. The only reason we catch stuff is because
               | we assume full ownership as part of our takeover process
               | and actually build and deploy product to find issues.
        
               | log4shelled wrote:
               | Look up the cap on fines per year. It's less than $2m.
               | 
               | I've consulted for healthcare companies where that is a
               | literal rounding error on their bottom line.
               | 
               | They. Do. Not. Care.
        
           | cortesoft wrote:
           | There is also PCI, but that just makes you invest in an
           | auditor.
        
           | vegetablepotpie wrote:
           | Who do you ask?
           | 
           | Politicians will say it's the companies responsibility, and
           | you should talk to them. Companies will say that they follow
           | all data protection laws and that policy discussions should
           | be up to the government.
        
           | chefandy wrote:
           | I think _just enough_ components of the problem are too
           | abstract for most people to practically reason about.
           | 
           | HIPAA passed when people expected Clinton to push for health
           | insurance improvements. The HITECH accompaniment passed in
           | 2009 when health care was a huge issue in the wake of the
           | 2008 disaster, and people expected the govt to crack down on
           | big company malfeasance. Subjectively, I think 'keeping your
           | health information secret because it _should_ be secret '
           | seems more viscerally compelling. SOX passed in the wake of
           | Enron and WorldCom during the .com bust. The EU, broadly,
           | seems less regulation averse than the US, but I'm no expert.
           | That the US hasn't followed suit, despite the current
           | backlash against social media and data tracking in general,
           | is telling.
           | 
           | Most folks think someone getting ahold of their CC# is the
           | worst-case scenario and they or someone they know has
           | probably experienced it. It was probably resolved with a
           | 5-minute phone call, and they probably blamed the last in-
           | person retail transaction they executed before the fraudulent
           | charges rather than some online company they bought a
           | potholder from 18 months prior. They likely don't even
           | consider the implications of someone using their SSN to open
           | a mortgage, lease a boat, claim unemployment benefits, or
           | work a year claiming total tax exemption on their W4.
           | 
           | Even many people who understand the privacy implications
           | might not understand how frequently breaches happen, the
           | practical steps to mitigate them, and whether they're
           | proportional to the risk. Few could factually evaluate the
           | inevitable industry FUD. I think it'd get way more pushback
           | than the right to repair did in Massachusetts, and industry
           | flung some pretty outrageous fear-mongering BS over that
           | one-- they implied non-proprietary car computer interfaces
           | would result in women being stalked and raped. _In a
           | television commercial._
           | 
           | I think it's doable and very important that we do, but I
           | completely understand why there hasn't been any popular
           | grassroots uprising about it.
        
           | [deleted]
        
       | jvanderbot wrote:
       | I'd argue this is absolutely the role of government institutions:
       | To enact legally-enforceable standards of behavior that protect
       | their citizens.
       | 
       | Won't happen.
        
       | ekanes wrote:
       | That means it is uncorrelated with their short/medium term
       | success.
       | 
       | If we wanted to fix that, we would either vote with wallets (we
       | aren't, so this doesn't work) OR we could assign higher penalties
       | for breaches.
        
       | throwaway22032 wrote:
       | There is no punishment.
       | 
       | If you're holding a gold bar for me and you lose it, you owe me a
       | gold bar.
       | 
       | If you're holding a photo of my drivers licence and you lose it,
       | nothing happens.
        
       | tristor wrote:
       | There's a lot of great comments in this thread pointing at
       | different aspects of this issue. I think it's actually more
       | complex than all of that, because while all of these things are
       | true, it misses the primary cause of bad information security:
       | People.
       | 
       | At every layer of nearly every company, nobody has any
       | understanding of information security. Where-as, as a society, we
       | have at least a basic understanding of physical security (we
       | understand the gist of a lock, and use them regularly, and guard
       | the keys), we have basically zero understanding of information
       | security.
       | 
       | I've worked, in some capacity, around information security for
       | nearly my entire career and I have found that even people I
       | highly respect as technologists rarely have any knowledge of
       | information security. Most of the information security side of
       | the industry is filled with people who are trained on compliance
       | and regulations, not on security, and they are seen as completely
       | synonymous. Security has to be layered in order to be effective,
       | yet that's been taken to mean several layers of different types
       | of brightly colored middle-boxes with pretty dashboards, rather
       | than an actual layering of security principles and a reasonable
       | organizational posture. While these things can be tools, they are
       | treated as solutions rather than tools that help you create a
       | solution.
       | 
       | Most SWEs know next to nothing about application security. Most
       | web devs don't even know what OWASP is, much less have any
       | understanding of web security. Most networking folks (even those
       | with Network Security in their title) know little about network
       | protocols and protocol security, instead being glorified firewall
       | rule writers. Most security architects only know about compliance
       | and policy, nothing about actually identifying threat vectors and
       | constructing robust organizational postures. And most executives
       | don't care beyond what's required to comply with the law or their
       | contractual agreements so leave it to "experts".
       | 
       | Most of the "experts" aren't experts. The fraud with information
       | security isn't just what's being perpetrated by attackers, it's
       | also what's being perpetrated by the entire information security
       | industry, which is mostly filled with puff pieces calling
       | themselves "experts" who don't actually understand anything about
       | security at all, as well as vendors who sell security products
       | that themselves may not be secure on the backend but have
       | privileged access within their client's data environments.
       | 
       | All an attacker must do is find your weakest link. What you must
       | do to protect yourself is ensure that your weakest link is
       | stronger than anyone else's strongest link. There's a huge
       | disparity in the effort and investment required, and it's an
       | issue that can't simply be resolved by throwing money at it
       | because most of the people lining up to take your money are their
       | own sort of attacker committing their own sort of fraud.
        
         | foxfluff wrote:
         | And then you occasionally have people who know a thing or two
         | but their hands are tied because organizations are
         | dysfunctional and people have no autonomy.. or worse yet, are
         | punished for sticking their nose into things that weren't on
         | their task list.
        
       | BeefWellington wrote:
       | As I see it there's two things at play here that feed into one
       | another:
       | 
       | 1. The re-framing by financial institutions of them being
       | defrauded as "identity theft" and pushing this responsibility
       | onto their customers.
       | 
       | 2. Because of the above, the data can be valuable, incentivizing
       | the compromise.
       | 
       | Re 1: Note that credit card companies have had this problem for
       | ages and treated it as fraud for decades, which is why
       | established card companies can have _very_ reasonable processes
       | to cancel transactions, mark some as fraudulent, and probably why
       | they have reversible transactions. However, because of the rest
       | of the industry card companies now appear to be jumping on board
       | with the  "identity theft" concept.
       | 
       | By collectively not treating it seriously and essentially letting
       | it happen and inconveniencing their customers instead of the
       | vendors, banks have essentially washed their hands of it and give
       | zero incentives to the vendors to seriously try to protect the
       | data. If every transaction marked fraudulent meant the vendor
       | didn't get the money, there would be a lot more serious action
       | here.
        
         | tablespoon wrote:
         | > Note that credit card companies have had this problem for
         | ages and treated it as fraud for decades, which is why
         | established card companies can have very reasonable processes
         | to cancel transactions, mark some as fraudulent, and probably
         | why they have reversible transactions.
         | 
         | Do they do that of their own volition, or because there's some
         | legal requirement forcing them to?
        
           | bcrosby95 wrote:
           | Credit cards are heavily regulated in the USA and, yes, there
           | is a legal requirement here.
           | 
           | No such requirements exists for debit cards. This is why I
           | hate them. But from what I can tell, most people don't seem
           | to have a problem getting fraud reversed.
        
           | ClumsyPilot wrote:
           | If someone steals from the debitcard, they steal your money.
           | 
           | If someone steals from your credit card, that's not your
           | money, it's the bank's money - the bank was trying to give
           | you a loan and gave it to the wrong person. That's their
           | problem.
           | 
           | If we didn't have this rule, there would be unlimited rampant
           | fraud - you don't just loose all you have, you loose what you
           | haven't. We would suddenly find out that we are a million
           | dollars in debt for no reason.
        
         | teddyh wrote:
         | "Damn you, masquerading as hundreds, if not thousands, of
         | customers! How dare you steal their identities!"
         | 
         | -- Mitchell & Webb, _Identity Theft_
         | (https://www.youtube.com/watch?v=-c57WKxeELY)
        
           | tsol wrote:
           | Lol. This is a clever way of putting it. Actually helped me
           | understand some of this
        
             | lotsofpulp wrote:
             | The video should be required to accompany any article about
             | "identify theft" to raise political awareness that a
             | business being defrauded should be the business's problem.
             | 
             | Edit: the business and law enforcement/court system's
             | problem. But certainly not an uninvolved individual's
             | problem.
        
         | tessierashpool wrote:
         | > The re-framing by financial institutions of them being
         | defrauded as "identity theft" and pushing this responsibility
         | onto their customers.
         | 
         | as with so many other things, elite impunity is the fundamental
         | problem.
         | 
         | for the banks to be putting their own failures of due diligence
         | on consumers' heads is as an outrage and an absurdity. it
         | shouldn't even be possible.
         | 
         | if they screw up, they should face the consequences of their
         | incompetence. but they don't. after the Equifax breach, the CEO
         | retired with $90M.
         | 
         | $90M for presiding over a corporation whose entire business
         | model is an exemption from defamation law, screwing it up,
         | blaming someone else down the line, and exposing millions to
         | so-called "identity theft" --- in other words, millions of
         | people now have an uncompensated permanent commitment to doing
         | due diligence for countless banks, car dealerships, and even
         | Walmarts throughout the country.
         | 
         | > collectively not treating it seriously and essentially
         | letting it happen
         | 
         | the modus operandi for the whole problem space
        
         | smorgusofborg wrote:
         | I'm not sure I agree with your last point. The merchants have
         | historically been powerless but the merchant side bank ends up
         | patching things up to fix it's own costs. Often this patching
         | means penalizing merchants with products that are fun to buy
         | fraudulently for failures that originated or could only have
         | been detected at the buyer's bank.
        
         | mistrial9 wrote:
         | agree - add to that a system side-effect -- with strong
         | consumer protection and easily reversed transactions, plus the
         | financial policy to cover the dollars involved, that leads to a
         | big increase of crooked insiders doing the fraud transactions.
         | Without evidence, I believe that VISA and MasterCard in the
         | early days, found that the massive money they made on consumer
         | credit was worth the sort-of-unstoppable insider scamming as a
         | "cost of doing business"
        
       | TheIronMark wrote:
       | For a lot of companies, it's not a real risk until it actually
       | happens. In other words, despite thousands of years of scams,
       | people still get scammed.
        
       | markus_zhang wrote:
       | Why treat anything serious if it doesn't impact the board? I
       | wouldn't either if I'm in that position. For sure I'm going to
       | hire consultants with coats made of certificates and then sleep
       | tight. I have done what the law or insurance company wants to see
       | and I have consultants as black sheep. What on earth do you
       | expect me to do more? Better processes? Sure let me hire more
       | consultants wearing suits...
        
         | log4shelled wrote:
         | You forget that the board is also full of slightly-more-
         | official-looking guys wearing suits. Guys in suits often forget
         | that there is more to life than appearances, and that there is
         | a cold hard reality unaffected by spin. Ransomware is gonna
         | ransomware regardless of how many boxes you check and how shiny
         | your suit looks.
        
           | markus_zhang wrote:
           | That's exactly what I'm trying to say. I don't have high hope
           | for this.
        
         | mfer wrote:
         | > I have done what the law or insurance company wants to see
         | and I have consultants as black sheep.
         | 
         | You hit a great point. The law and insurance companies have a
         | major impact on what companies do.
         | 
         | If it's illegal (and they'll get caught) or the insurance
         | companies say "do this to get insurance or if you don't do it
         | the insurance doesn't cover you" people will make change.
         | 
         | That right there is a way to bring change.
         | 
         | Call your gov reps.
         | 
         | Let's get insurance companies to put security controls into
         | coverage policies.
        
           | markus_zhang wrote:
           | One thing I'm a bit pessimistic is that insurance policies
           | usually bring a lot of paper work and eventually it's just
           | certificates over certificates. But again, maybe (a big
           | maybe) this is still better than what things are going on
           | right now.
           | 
           | The best solution is for board members to have respect to
           | their best techincal people and let them create processes
           | best for individual companies. Sadly this is too personal and
           | usually dies when a couple of people jump ship.
           | 
           | Damn, management is so hard.
        
             | bluGill wrote:
             | Hopefully that make those certificates worthwhile someday.
             | Right now they have earned a bad reputation, but with the
             | right training behind it things could change.
        
           | slx26 wrote:
           | The problem is always the same: to do things right, you need
           | people who know what they are doing. _Redundantly_. Yet, most
           | of us don 't know what we are doing, so in practice we end up
           | creating proxies for "the people who know what they are doing
           | according to their certificates certify that I know what I'm
           | doing". Because otherwise you wouldn't be accepted in a cool
           | position, and we all want to be in a cool position. And
           | that's how we end up with so much shit overflowing in the
           | world, but people still pretend they have their own under
           | control. Feeling greedy? Play pretend. A few hours later...
           | Want to be accepted? Play pretend. A few hours later... Want
           | to not be left out? Play pretend.
        
             | bluGill wrote:
             | Except that there are real attacks and the insurance
             | companies affects will do postmortems to figure out why
             | what they demanded didn't work. It will be a few rounds
             | before they figure out how to train for this though. More
             | than a few rounds because the bad guys are not stupid and
             | thinking up new things that smart good people need to
             | mitigate.
        
         | bluGill wrote:
         | I'm sure Experian's data breach went to the board. I suspect
         | other boards have started asking questions to ensure they are
         | not surprised by such things.
        
       ___________________________________________________________________
       (page generated 2022-01-27 23:01 UTC)