The arrests of three Seattle-area men for their involvement in two separate ATM-skimming schemes highlight technological and social vulnerabilities that international fraudsters have learned to exploit with ease.
Provisions in legislation introduced by Sen. Richard Blumenthal, D-Conn., target companies that store online data for more than 10,000 people to assure their customers' personally identifiable information is protected.
A new report to Congress about major healthcare information breaches shows that federal officials have yet to complete their investigations of corrective actions taken in the wake of 70 percent of incidents.
Nearly 7.9 million Americans were affected by almost 30,800 health information breaches between September 2009, when a federal healthcare breach notification rule took effect, and the end of 2010, according to a new report to Congress.
"Everyone from the Fed down knew about this and chose to let it go," says mortgage fraud expert L.T. Lafferty. "As a result of that regulatory complacency, the market continues to be plagued with fraudulent activity."
Three Seattle area men have been arrested for their alleged involvement in separate ATM skimming schemes that drained more than half a million dollars from retail customer accounts in at least six states.
"Our proposal would give judges the authority they need to adequately punish serious offenders and to make these penalties commensurate with the same type of conduct occurring offline," Associate Deputy Attorney General James Baker tells Congress.
The Treasury Department's Office of Terrorism and Financial Intelligence has worked to prevent anti-money laundering and illegal cash flow from reaching the hands of terrorist groups, but more needs to be done to further mitigate risks, says Treasury Assistant Secretary Daniel L. Glaser.
"What banks need to be aware of is that much of this fraud is occurring on the consumer and business-customer side, and not all of them will invest in technology that catches these attacks," says Phil Blank of Javelin Strategy & Research.
Providing HIPAA compliance auditors with complete documentation of every aspect of your privacy and security strategy, along with evidence of corrective action taken to mitigate risks, is essential, says consultant Cliff Baker.
Philip Reitinger's appointment as Sony's first chief information security officer comes more than four months after a massive breach of Sony's PlayStation gaming system that exposed the personal identifiable information of some 77 million customers.