Deborah Juhnke

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All encryption tools are not created equal. Just ask the folks at Microsoft, who have recently demonstrated that encrypted Electronic Medical Record databases can leak information. Turns out that CryptDB, a SQL database add-on developed at MIT that allows searching of encrypted data, allows search queries to be combined with information in the public domain to hack the database. More on this in a minute. In the meantime, let’s consider the assumption that encryption is inviolate/ infrangible/ impervious to hacks. As I mentioned in an earlier post, encryption algorithms are too complex for most laypersons to understand, but we should at least wrap our heads around the concept that encryption is not a “set it and forget it” technology, nor is it foolproof.

The FTC has pursued enforcement actions against more than 50 companies for inadequate data security, and to date only two, Wyndham Hotels and LabMD, have pushed back. On the heels of a Third Circuit victory in its Wyndham litigation, the FTC recently suffered a blow when its administrative complaint against LabMD was dismissed – by an FTC administrative judge, no less.

As the FTC pursues an appeal to its commissioners, are there lessons to be learned? First, reports of the death of the FTC’s Section 5 data security enforcement authority have, once again, been greatly exaggerated – the FTC will remain in the data security enforcer role post-LabMD, as strong as ever. And second, the real lesson of LabMD is what it teaches us about grey hat security firm tactics, and how businesses need to trust their gut and do their homework.

Husch Blackwell along with CBIZ and UMB co-sponsored Security, Data Breach & The Bottom Line: A Forecast For Manufacturers on Oct. 29 at Boulevard Brewery in Kansas City. Seventy people attended the manufacturing-focused seminar, which covered various areas of vulnerability specific to manufacturers and included a special keynote by AUSA, John Cowles and FBI Agent…

In the late 1500s, privateer and explorer Martin Frobisher embarked upon a journey that would net him fame—Frobisher Bay is named for him—but not much fortune. His travels took him to what is now Canada, where he claimed Baffin Island for the Crown because of the vast amounts of gold he found there. He was so convinced he had found great riches that he continued to make multiple trips with increasingly more ships to mine and send the ore home for safekeeping. Queen Elizabeth I even ordered quadruple locks in the Tower of London to guard the trove.

Unfortunately for all, however, what Frobisher had so diligently worked to procure, transport, and store was nothing but iron pyrite—fool’s gold. Once it was discovered that his cache was not real gold, an Italian alchemist was engaged to work his magic and transform the worthless rocks into the gold everyone desired. Needless to say, he was unsuccessful.

I was reminded of this story while attending the Information Governance Conference recently in Connecticut.

Do you often feel that despite best efforts to circle the wagons your information security team is fighting a losing battle with broken down tools? Even though information security budgets have increased in the last couple of years—likely in response to the very visible increase in high-profile data breaches—discretionary budget dollars are scarce. I recently heard the poker term “dead money”  used to describe that large portion of every IT budget that has been committed long before it is received, much like the money we all must dedicate to mortgages, utilities, food, and transportation. Thus, for every $100 of total IT spend, we may be left with just $0.60 for new baubles and geegaws, as my grandmother used to say.

A busy examiner, working on 15-20 other cases, sets a file aside in the “delayed/pending” queue while awaiting information, and a gun is sold and nine people died. A utility transferred responsibility for recordkeeping functions to its distribution business unit, files containing information about pressure and strength tests were not kept current, and an explosion kills eight. Computer files are accidentally deleted from an Airbus plane and three of its four engines shut down, causing a crash that kills four.

What do these seemingly disparate events have in common?

Some weeks ago I experienced that sinking feeling that comes with locking your keys in the car. Fortunately, I was only a phone call and a 20-minute wait away from rescue. But how can that happen, you ask, given all the modern safeguards built into automotive key technology? Don’t cars these days alert you or automatically unlock the doors when you leave the key inside?

Once upon a time—back when paper ruled—junk mail was clearly junk.  We easily separated the bills from the ads, and it never crossed our minds to save the ads “just in case.”  Fast forward to today’s digital world, and we find that not only are we doubling the volume of data every two years, we are outpacing our storage and, arguably, our ability to manage it. We’re keeping the “ads” and a whole lot more.

Ineffective wireless encryption

Taped-over door lock on data room

Inadequate passwords

Computers without adequate log-off

Disabled audit logging

Unencrypted email and laptops

Former employees with inappropriate network access

These vulnerabilities and more (a total of 151) were found at seven large hospitals during a round of audits by the Department of Health & Human Services. Although these vivid examples point to hospital systems, HIPAA applies also to many other types of covered entities and business associates including, of course, physician practices. These non-hospital providers are most likely even more vulnerable to such lapses as they are less likely to have dedicated information technology staff, legal departments, and formalized record-keeping practices.