Egress Switch can help avoid data exposure FSA fines

(21/08/2009)

Egress Software predicts further fines to be imposed on financial services institutions in the U.K. The HSBC fines, totaling over £3m, are the highest ever issued for a data loss incident. The two data loss incidents were both cases of sensitive information that was shared with third parties.

“It’s very troubling to see these fines issued when there has been a growing awareness of the risks associated with data loss, especially over the past few years. The U.K. as well as many other countries around the world have seen data loss lead to opportunities for identity theft, resulting in huge recovery costs and nearly crippling the reputation of organizations who are seemingly unable to control the information with which they have been entrusted,” stated Bob Egner, president of Egress Software’s US Operations.

Egner explained, “Our customers tell us that over one-third of data loss incidents arise in situations where sensitive information is shared with third parties. This figure has been validated by industry analysts who study data breaches, such as the Ponemon Institute. The two data loss incidents in question were exactly these types of cases – information copied to disks that were sent via post or courier. While much of the attention in recent years has been on internal data loss, such as those experienced with a lost laptop incident, the loss attributed to third parties has continued to rise. If Egress Switch had been in use by HSBC, this data exposure would not have happened.”

Egress Switch, a solution to protecting shared information, addresses the four key elements to secure data exchange:

Protect
All information is encrypted at every step before, during, and after it is shared.

Control
Each piece of shared information has access control assigned to it, which can be set or changed in real-time so information believed to be lost or compromised can be immediately shut down.

Ease of Use
One click by the end user makes it simple to secure information that needs to be shared, and creates end user awareness that they are taking appropriate steps to protect sensitive information.

Audit
A full record is kept of where information has gone, who has been assigned to access it, plus the date and time of any successful or unsuccessful access attempts.

“We are expecting the FSA to diligently pursue the legislative authority they have been empowered to enforce. In spite of increasing awareness of the risks and solutions to guard against data loss, further fines will certainly be levied,” added Egner.

Related topics:  Data management and data security 

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