IT Compliance Advisor

November 24, 2009  3:35 PM

IT compliance resources: Join our communities on Facebook and LinkedIn

Posted by: GuyPardon

As 2009 comes to a close, we know that the ways you are finding IT compliance resources, news and fellow compliance professionals are changing as the online environment evolves. We know your inbox isn’t the only place to find you. Last week, we created two new communities on Facebook and LinkedIn.

Facebook, Inc.
Image via Wikipedia

If you’ve been staying up to date with the activities of friends, family members and colleagues on Facebook, now you can keep up with IT compliance there, too.

Just become a fan of on Facebook.

If you focus your social networking activity on connecting with colleagues, please consider joining our IT compliance group on LinkedIn.

And, as many of you may be aware, has been active on Twitter since our launch in January. You can follow us there at @ITcompliance.

Regardless of the platform, you’ll find updates and discussions among fellow compliance and security professionals about our most recent news, tips, interactive content, e-books and more.

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November 20, 2009  4:15 PM

Former cyber czar describes cybersecurity policy-making, faults FISMA

Posted by: GuyPardon
compliance, Computer security, cyber security, cybersecurity, cyberwar, DHS, Electrical grid, FISMA, Government, Greg Garcia, Security, United States, United States Department of Homeland Security

How did the first U.S. “cyber czar” describe his time as the nation’s assistant secretary for Cybersecurity and Communications (CS&C)? Quoting Mark Twain, Greg Garcia observed that “a man who carries a cat by a tail learns something he can learn in no other way.”

It was “like a paintball fight in an Escher painting” at the Department of Homeland Security (DHS), Garcia described, “with great affection.”

Jokes aside, Garcia, who spoke at the CA IT Government Expo this week in Washington, was clear in describing what it was like in the crucible of the DHS making cybersecurity policy. “Our adversaries right now are better organized and better motivated than we are,” he said. “We, as a nation, are at an inflection point in this national cybersecurity challenge. We have a foundation for organizational structure in the private sector. We need to build a trust framework. If you don’t have an affirmation of trust, even with the same team, you’re not going to be able to get to an effective real-time response.”

Garcia, who served as assistant secretary for CS&C from 2006 to 2008, broke down the components of the Comprehensive National Cyber Security Initiative (CNCI) that President Bush signed in January 2008. The CNCI consists of 12 elements aimed at improving cybersecurity on federal networks. “We were seeing terabytes of data flowing out of .gov networks,” said Garcia.

CNCI components include intrusion detection and prevention, research and development into so-called “leap ahead” technologies and better situational awareness, coordinated through the National Cybersecurity Center.

Garcia advocated for better counterintelligence for cybersecurity, “classified network security,” perhaps referring to the Einstein monitoring tool and improved cybereducation and training.

Echoing the NERC CSO’s remarks last month, Garcia has had to think through how deterrence strategy changes in cyberwar, especially when other nation states are in the electric grid or government networks. “What point does a cyberattack become an act of war?” he asked. “How do you make it more dangerous for our adversaries to attack us? A lot of it has to do with attribution.”

Garcia affirmed the need for a Federal Information Security Management Act (FISMA) for ISPs, but said that “it needs to be market-driven, at least for now, until we can determine if there’s market failure. Every infrastructure sector has different business models and risk models.” Garcia provided what may be a controversial example: an initiative where major investment banks came together and “designed their own FISMA, if you will,” with auditors to assess financial network security.

When it came to the utility of FISMA in assessing cybersecurity readiness, however, Garcia had few kind words. “FISMA has not been successful, primarily because it has been a box-checking exercise,” he said. “It is not evaluating security. That’s a very hard thing to do, because you have different threat models and vulnerability environments.”

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November 19, 2009  6:24 PM

U.S. House introduces act to reduce P2P file-sharing security risks

Posted by: GuyPardon

U.S. Rep. Edolphus Towns (D-N.Y.) this week introduced H.R. 4098, “The Secure Federal File Sharing Act,” which would require the Office of Management and Budget to issue guidance to prohibit the personal use of peer-to-peer file-sharing software by government employees.

Towns, who sits on the House Oversight Committee, might have been motivated to prevent another Congressional data breach. As Senior News Writer Linda Tucci reported last month, P2P file sharing exposed secret Congressional investigations at the House Ethics committee. As Tucci observed:

The source who tipped off the reporters is not connected to the congressional investigations … Which makes this security breach all the more scary. The incident should add a big jolt to the Committee on Oversight and Government Reform hearings under way on inadvertent file sharing over P2P file sharing networks.

Tucci was right on the money here. The Secure Federal File Sharing Act was referred to the House Committee on Oversight and Government Reform. Should it be enacted, the director of the Office of Management and Budget, “after consultation with the Federal Chief Information Officers Council,” will have to issue guidance within 90 days, intended to:

  1. “prohibit the download, installation, or use by Government employees and contractors of open-network peer-to-peer file sharing software on all Federal computers, computer systems, and networks, including those operated by contractors on the Government’s behalf, unless such software is approved in accordance with procedures under subsection (b);” and
  2. ”address the download, installation, or use by Government employees and contractors of such software on home or personal computers as it relates to telework and remotely accessing Federal computers, computer systems, and networks, including those operated by contractors on the Government’s behalf.”

The introduction of the Secure Federal File Sharing Act comes at a time of heightened concerns about cybersecurity threats. As Tucci also reported in August, a congressional hearing on inadvertent P2P file sharing showed how much risk is involved:

Classified or sensitive files recently found on P2P file sharing networks included: the Secret Service safe house location for the first lady, the Social Security numbers of every master sergeant in the Army, medical records of some 24,000 patients of a Texas hospital and the entire Outlook calendar of an individual who handles all the merger and acquisition activity at a well-known, publicly traded company, with attachments detailing every proposed deal.

A listing of every nuclear facility in the U.S. turned up on four sites in France. Last week also showed that illicit music downloading can have serious legal consequences: a Boston University graduate student was ordered to pay $675,000 in damages for illegally downloading songs and sharing them online.

Tucci was also right about the cautionary tale involved here: CIOs and compliance officers should all revisit their policies on the use of P2P file sharing software. As she reported in August, research from Forrester shows that “73% of companies take some kind of stance on P2P, but only 18% ban it outright. Companies tend to view P2P file sharing as more of a bandwidth issue than a security risk.”

Given the steady leakage of personally identifiable information, proprietary data or other sensitive content into these networks over the past few years, security concerns may mean peer-to-peer file sharing days have come to an end both on and off of federal IT infrastructure.

November 17, 2009  10:55 PM

Study links outsourcing, mobile workforce and cyberterrorism threats

Posted by: GuyPardon
Application security, CA, compliance, Critical infrastructure, cybersecurity, Federal Information Security Management Act of 2002, FISMA, Government, Government agency, Ponemon Institute, research, Security, United States, United States Department of Health and Human Services

A new study of top government IT executives conducted by the Ponemon Institute identified outsourcing, cyberterrorism and an increasingly mobile workforce as significant threats to data, government systems and the nation’s critical infrastructure.

IT executives from the Departments of Defense, Justice, Homeland Security and Health and Human Services represented the largest proportion of respondents to the study, which was sponsored by CA Inc.

The study found that 63 percent of respondents perceived the increasingly mobile workforce “as contributing significantly to endpoint security risks as a result of insecure mobile data-bearing devices that are susceptible to malware infections as well as insecure wireless connectivity.”

Cybersecrity Center Opens in Virginia
[Image by Getty Images via Daylife]

Perhaps reflecting the current zeitgeist around the “Government 2.0” movement and compliance concerns around enterprise 2.0 tools, the study showed that 79% of respondents see increased use of collaboration tools as a significant risk to data protection.

Specifically, the use of social computing platforms is increasing the storage of unstructured data that could contain sensitive information in a repository that is not effectively secured. Fifty-two percent of respondents identified the use of Web 2.0 applications as a vector for increased risk for sensitive data loss, including social networking, social messaging and wikis.

Unstructured data and outsourcing were viewed as the top two root causes creating increased cybersecurity risks for insecure sensitive and confidential information among respondents. This concern is reflected at the Department for Homeland Security, where application security has been referenced as both a supply chain risk and a cyberterrorism threat.

As reported by the study, 38% of respondents were unsure if there had been cybercrime on the network in the past year. What’s perhaps more significant is the 2% to 5% of people who know that it had happened. And that may not reflect the true total.

“I do feel the numbers are underreported,” said David Hansen, CA’s corporate vice president and general manager of the company’s security management unit. “In the past, cybercrime incidents have tended to be brushed under the carpet. More pressure on disclosure has forced some changes to happen and is helpful for awareness.”

Data breaches, by way of contrast, must be published or reported, and 34% of respondents said that their agency had experienced two to five data breaches in the past year. Overall, 75% of respondents said that their agency had experienced a data breach in the last year. Respondents overwhelming chose wireless networks as the primary threat vector, followed by endpoints and networks.

Finally, 48 % of respondents said their organization isn’t taking appropriate steps to comply with the Federal Information Security Management Act (FISMA) and 55% don’t have adequate security technologies to protect information assets and critical infrastructure.

“When I talk to government agencies, they look at FISMA compliance as a necessary evil,” said Hansen. “I think they might have to either redefine it to address new threats and create a lower common denominator or push for accountability.”

The question now, as bills like the ICE Act or the Cybersecurity Act work their way through Congress, is whether FISMA reform will adequately address the vulnerabilities that government IT executives are worried about.

“The problem is that, in many cases, government doesn’t have a lot of control of a lot of critical infrastructure, like manufacturing, power plants or private networks,” said Hansen. “Part of cybersecurity is about critical infrastructure and things that are not covered by FISMA. Most of those systems have no viruses or malware protection. That hasn’t been an issue because those systems weren’t connected to the Internet. Now, systems are being connected and are creating massive exposures that just weren’t there before.”

The Ponemon Institute’s “Cybersecurity Mega Trends” study is available for download from as a PDF.

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November 9, 2009  10:10 PM

60 Minutes covers cybersecurity threats, federal data breach

Posted by: GuyPardon
CBS News, compliance, cybersecurity, cybersecurity threats, cyberterrorism, cyberwar, FISMA, ICE Act, Melissa Hathaway, United States Central Command, United States Department of Defense, White House

Yesterday, CBS News’ 60 Minutes devoted its opening story to cybersecurity threats to critical infrastructure in the United States, including the power grid, financial systems and military information systems. Threatpost, the information security blog associated with Kaspersky Labs, has embedded the 60 Minutes segment on cyberterrorism.

In an interview with correspondent Steve Kroft, cybersecurity expert Jim Lewis calls a federal data breach in 2007 “our electronic Pearl Harbor.” In the transcript of the segment, available at, Lewis said. “Some unknown foreign power, and honestly, we don’t know who it is, broke into the Department of Defense, to the Department of State, the Department of Commerce, probably the Department of Energy, probably NASA. They broke into all of the high-tech agencies, all of the military agencies, and downloaded terabytes of information.”

Lewis also spoke about the penetration of U.S. military networks, specifically the United States Central Command (CENTCOM). Lewis believes the data breach was accomplished by foreign spies leaving corrupted thumbnail drives in locations where U.S. military personnel would be likely to pick them up. When a drive was inserted into a CENTCOM computer, a malicious application on the drive opened a back door for hackers to access the system. According to Lewis, the Pentagon has now banned thumbnail drives. (David Mortman offered advice last year about whether enterprises should also ban USB drives.)

60 Minutes has also posted several short video interviews online that offer more time with Lewis, including “Hacking the ATMs,” “Hacking the DOD” and “The Holy Grail,” where Lewis talks about the security of the financial system. In “Online Jihad,” Shawn Henry, assistant director of the FBI’s Cyber Division, discusses potential cybersecurity threats from Islamic fundamentalism.

The report from 60 Minutes coincides with our own coverage. Growing cybersecurity threats to critical infrastructure and the electric grid have put a new focus on NERC regulations, as well as FISMA, warned NERC’s chief security officer, Michael Assante. Melissa Hathaway, former acting senior director for cyberspace for the National Security and Homeland Security councils, also spoke of the need for better public-private cooperation at the same cybersecurity panel in Washington that Assante spoke at last month. And Lewis says that new rules for cyberwar are being defined as the risks grow.

IT security pros and analysts alike know that intrusions, breaches and a growing cybersecurity threat aren’t anything new. Dave Lewis, a veteran security practitioner and blogger, commented that “the overwhelming FUD was troublesome.” Dan Kennedy, CISO at the Praetorian Group, wished that “the FBI would knock off the cloak-and-dagger routine when they’re asked a follow up question.”

Regardless of where you stand on the 60 Minutes report, one fact remains clear: The White House still hasn’t appointed a cybersecurity coordinator.

As Marc Ambinder observed at, “last night’s 60 Minutes feature on cybersecurity may add a sense of political urgency to the debate” about a cybersecurity coordinator.

Shane Harris, also writing about the broadcast of the segment on cybersecurity, also put the 60 Minutes report in perspective. “Although the piece didn’t make much news, it was news to most Americans. Full disclosure, I know the producer, Graham Messick, and while I don’t have any special insights into how he approached the subject, I think it’s fair to say that his work will change the cyber security debate in some fundamental ways.”

Harris wonders if the report could have an effect on legislation and subsequent regulatory compliance, like FISMA reform associated with further iterations of the ICE Act. “There are a number of bills pending in Congress that threaten to set requirements on companies to disclose the holes in their networks,” he wrote. “Those bills just got a major push last night. All in all, while 60 Minutes didn’t exactly blow the lid off anything last night, they have elevated the attention of this issue to new heights. That alters the political dynamics significantly.”

UPDATE: Wired Magazine has reported that the blackouts in Brazil in 2007 were “actually the result of a utility company’s negligent maintenance of high voltage-insulators on two transmission lines,” not computer hackers. 60 Minutes relied upon “unnamed sources” in claiming that the two-day outage described by Kroft in the Atlantic state of Espirito Santo “was triggered by hackers targeting a utility company’s control systems.”

Now, Wired reports the following:

The utility company involved, Furnas Centrais Elétricas, told Threat Level on Monday, it “has no knowledge of hackers acting in Furnas’ power transmission system.”

Brazilian government officials disputed the report over the weekend, and Raphael Mandarino Jr., director of the Homeland Security Information and Communication Directorate, told the newspaper Folha de S. Paulo that he’s investigated the claims and found no evidence of hacker attacks, adding that Brazil’s electric control systems are not directly connected to the internet.

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November 6, 2009  10:10 PM

U.S. CIO Kundra bets on SOA, cloud computing, agile, data-based policy

Posted by: GuyPardon
American Recovery and Reinvestment Act of 2009, CIO, compliance, cybersecurity,, Federal government of the United States, FISMA, Google, gov2.0, U.S. CIO Vivek Kundra

U.S. CIO Vivek Kundra, appearing Friday as the keynote speaker at the University of Maryland’s CIO Forum, touched on a number of topics affecting both public- and private-sector CIOs. Some of his comments follow:

“We found that the role of CIOs in the federal government is very much focused on data centers, networking and technology, not on how we can transform the function of the public sector itself.” He explained that he wants to “leverage tech to fundamentally change the way the public sector operates.” Now, as the federal government works to account for each of the $787 billion in spending from the American Recovery and Reinvestment Act of 2009 and publishes more data from its agencies, Kundra said, “we’re shifting away from democratizing data to thinking about how public policy can be powered by that information.”

U.S. CIO Kundra speaks at the University of Maryland CIO Forum

Cloud computing, SOA and agile development

In tracing the path of technology from agrarian to industrial to the current information revolution, Kundra noted the transformative effect of both cell phones and social networking platforms like Facebook, YouTube and Twitter. “We’re seeing the impact that Twitter has on the geopolitical climate of the world,” he said. “Information is far more liquid than it has been in the history of civilization.” The disruptive effects of the online revolution in user-generated content are steadily filtering into government. The “Darwinian pressures” exerted upon real estate, real estate, consumer products and the automotive industry haven’t hit government yet, Kundra observed. “It’s easy to go online and compare consumer products, but it’s very difficult, if not impossible, to get information to make intelligent decisions.” In launching the contest Apps for Democracy, in fact, Kundra found a way to introduce an element of competition and innovation into an government IT ecosystem that was underserved in both areas.

Kundra has been a proponent of cloud computing for years, going back to his position as the CTO of the District of Columbia, where he signed a contract with Google for business services. Today, he emphasized the need for security, interoperability and data portability in federal government use of cloud computing. “As we make the shift towards cloud computing, security threats need to be addressed. Solutions cannot be bolted on afterwards. Data portability is central, so that as we move from Vendor A to Vendor B we architect this with interoperability and standards so that we don’t spend billions later.”

Questioned on whether service-oriented architecture still is an emphasis in a federal cloud computing paradigm, Kundra said SOA “absolutely” still matters. “Look at the Social Security Administration and what it’s done with SOA and local government,” he said. “They can build lightweight applications to interact with databases elsewhere.” That embrace of modern development practices extends beyond just SOA or upgrading programmers’ skills from COBOL. “How do we move towards an agile procurement or agile development methodology?” asked Kundra.

In some areas, the government is moving to make systems more interoperable. Kundra pointed to what what’s happening between the IRS and Department of Education in student aid. “Before, if you wanted to apply and get aid, you had to fill out a FAFSA,” said Kundra. “That form is more complex than a 1040.” Starting in January, there will be a brand new online way to fill out a Free Application for Student Aid, according to Kundra, which will eliminate 70 questions and 20 Web screens. “Students will be able to get IRS data and autopopulate it in the form for student aid.”

Government 2.0 and data-driven policy

As he grows into the U.S. CIO role, Kundra has continued to add to the areas where government IT spending and management has been and where he’d like it to go. IT systems were “not invested where they should be, which is at the intersection of the American people and government,” he said. As he put it, it’s a “simple change in default setting to being that of secretive, opaque and closed to transparent, open and participatory.”

The old mode involved the management of $70 billion of federal IT investments through a “closed, opaque, checklist-driven process,” Kundra said. Now, the federal IT dashboard, tracks spending. The website has received more than 56 million hits since launch, according to Kundra. In the old way of thinking, there was a “presumption that the government has a monopoly on the best ideas,” said Kundra. Now, provides machine-readable data for developers to mash up. Historically, there’s been a “complex, time-consuming, paper-based acquisition process,” said Kundra. Now, there’s

Cybersecurity and FISMA reform

Kundra sees the same transition toward more flexible systems in cybersecurity. “We’re moving from a manual, reporting-based, compliance-focused approach to a real-time measurement of actual cybersecurity,” said Kundra, referring to the new “Cyberscope” system for online reporting of cybersecurity threats that launched in October. “You cannot address real-time threats with a solution that’s focused on reporting requirements on a quarterly basis.”

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November 2, 2009  9:30 PM

Improve public and private cybersecurity partnerships, says Hathaway

Posted by: GuyPardon
cybersecurity, cybersecurity threats, cyberwar, DDoS, Federal Emergency Management Agency, identity theft, Melissa Hathaway, National security, Security, United States, White House

Melissa Hathaway, former acting senior director for cyberspace for the National Security and Homeland Security councils, spoke of the need for better public-private cooperation at a cybersecurity panel in Washington last week.

Hathaway was part of a panel at the International Spy Museum in Washington, D.C., held to draw attention to the growing dangers online as National Cybersecurity Month drew to a close.

“Thank god for Akamai, who redirected a lot of the bandwidth and kept the Department of Transportation and NYSE up and running,” she said, referring to the DDoS attacks on the U.S. government earlier this year. Hathaway highlighted the importance of moving forward on enacting the 25 recommendations included in the cybersecurity report she delivered to the White House.

Her remarks followed the same theme as the speech on cybersecurity threats she delivered to the ArcSight Conference earlier this month.

Hathaway was proud of the attention that the Obama administration has paid to the issue, observing that when President Obama spoke, it was “the first time the leader of any country spoke about cyberspace or cybersecurity for any length of time.” Obama’s speech on cybersecurity is embedded below.

[kml_flashembed movie="" width="425" height="350" wmode="transparent" /]

Hathaway noted that cybersecurity threats are a personal issue to the president, referring to attacks against his BlackBerry, and to his staff, given “their data breaches, and policy documents that he lost.”

“Many people don’t realize their computer is already infected by a botnet” she said, emphasizing the importance of raising awareness of the risks. “How many people realize that when they buy a thumb drive that it comes with extra executables for marketing purposes to send data home?”

Hathaway called endemic data breaches in the business world “one of the biggest secrets that no one is talking about publicly” and drew attention to a rising tide of electronic fraud worldwide. “In Bulgaria,” she said, “one of our colleagues said you can’t withdraw cash at an ATM unless you have your cellphone and it geolocates you.” How many people now have to put ZIP codes in for gas? “That’s because POS terminals have been hijacked.”

Cybersecurity threats extend beyond fraud, identity theft and data breaches. “There is generally a lack of agreement about what is a crime in cyberspace, much less what is an act of war,” Hathaway said. “In the event of a digital disaster, who is going to restore the infrastructure?” Also key: Who will pay? “It’s not going to be the government,” she said, at least not under current Federal Emergency Management Agency frameworks. “There’s no equivalent of a national disaster in cyberspace yet.”

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November 2, 2009  9:26 PM

New rules for cyberwar being defined as cybersecurity risks grow

Posted by: GuyPardon
Center for Strategic and International Studies, cybersecurity, DHS, FISA, International Spy Museum, National security, Security, United States

James Lewis, director and senior fellow of the Technology and Public Policy Program at the Center for Strategic and International Studies, soberly assessed the risks to national security that lie ahead in cyberspace. “It’s primarily an espionage problem,” he said. “This is the easiest way to be a spy that has ever been invented … there’s zero chance of being caught and prosecuted if you’re smart about it.”

Lewis made that observation speaking on a panel at the International Spy Museum in Washington, D.C., held to draw attention to the growing dangers online as National Cybersecurity Month drew to a close.

Citing cyberattacks on Estonia, Lewis, the project director for the Commission on Cybersecurity for President Obama, said he anticipated more advanced attacks in future cyberwars, either by militaries or by non-state entities in the distant future.“All advanced militaries now include cyberattack capabilities.” As he put it, “you can send missiles, commando teams — or you can send hackers. And hackers are much cheaper.”

Lewis believes that those “attacks are not what we have to worry about,” however – it’s “those that disrupt critical infrastructure” that keep him up at night. “The challenge is that the Internet was built for scientists,” he said, which meant that it was built to assume trust. The U.S. has “built an exceptionally insecure environment that our military and economy now depend on.” As a result, Lewis said, “the U.S. is more vulnerable than any other country” because it has put the Internet to the best use for its economy, politics, research and military.

A central challenge in this new operational environment is that “the old Cold War notion of deterrence doesn’t work,” Lewis said. “We’ve put a lot of effort into the offensive side, but it hasn’t helped us on the cybersecurity side.” Moving forward with improving the nation’s exposure to cybersecurity risks is also challenging because of the traditional approaches to solving problems on a national scale in the U.S. “Do we wait for the market or wait for something that has a larger role for government,” asked Lewis. It’s difficult to discuss, he said, because “our ideology is to talk about a market solution, but we’re facing competitors who aren’t bound by that.”

There are also legal boundaries that must be considered in the context of new threat vectors and technologies. “The laws that we have to protect civil liberties and privacy were written 20 to 30 years ago,” said Lewis. “In the old days, you couldn’t look at traffic without understanding the content.”

Now, as he observed, the question is “How do you involve DHS? Or NSA? Some of this leads back to the FISA debate. To really defend cyberspace, you need better situational awareness. What we need to know for cybersecurity, you need to look at all the traffic coming into the U.S.” When Lewis, however, asked how many in the audience supported such a move from DHS, few hands went up, reflecting the complexity of such electronic filtering.

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October 30, 2009  4:01 PM

Peer-to-peer file sharing exposes Congressional secret investigations

Posted by: Linda Tucci
compliance, file sharing

The Washington Post broke a story last night that should prick up the ears of information security and compliance officers. The names of more than 30 lawmakers under scrutiny by the highly secretive House ethics committee for possible ethics violations were leaked when a “low-level” staffer working from home put them on a peer-to-peer file sharing network.

The security breach brought swift action. The staffer was fired, and a lot of Congressional leaders were embarrassed. Statements came flying from all parties involved. The ethics committee does not make the names public (of their colleagues, no less!) until an official investigation is announced, for the obvious reason that these secret probes could unfairly damage a lawmaker’s reputation.

The leak does not appear to be politically motivated in any obvious way. The source who tipped off the reporters is not connected to the congressional investigations, according to the story. Which makes this security breach all the more scary.

The incident should add a big jolt to the Committee on Oversight and Government Reform hearings under way on inadvertent file sharing over P2P networks. And serve as another reminder to CIOs to revisit their P2P policies. As we reported in a story in August on the P2P hearings, research shows that 73% of companies take some kind of stance on P2P, but only 18% ban it outright. Companies tend to view P2P file sharing as more of a bandwidth issue than a security risk. Think again, and check out the story for peer-to-peer file-sharing tips.

October 27, 2009  7:43 PM

Schwarzenegger vetoes California data breach notification bill SB 20

Posted by: Scot Petersen
California Data Security and Privacy Law, data breach, encryption, Massachusetts Data Security and Privacy Law, SB 20, Schwarzenegger, Simitian

In case you missed it, California Gov. Arnold Schwarzenegger vetoed Senate Bill 20, which would have added a few more requirements to the state’s existing data breach notification law.

Sponsored by state Sen. Joe Simitian, the additions to the landmark data breach law would require holders of personal information to reveal the type of information that was lost and details of the actual breach incident, in addition to notifying data owners of the event.

In his veto letter, Schwarzenegger called the bill “unnecessary … because there is no evidence that there is a problem with the information provided to consumers.”

In an interview with in September, Sen. Simitian said that final negotiations had eliminated any opposition to SB 20, and said the purpose of the bill was to provide consumers with more information. “My argument was, you want to let the state know, so we can get some sense of the scope of the problem,” he said. “And also so consumers have some sense. If I communicate to you that you are one of three files that were compromised, then you are probably a little more anxious and a little more likely to take some steps to protect yourself then if you were one of 500,000.”

In reacting to the veto, Sen. Simitian said, “I’m surprised as well as disappointed by the governor’s veto,” said Simitian in a statement. “This was a common sense step to help consumers. No one likes to get the news that personal information about them has been stolen. But when it happens, people are entitled to get the information they need to decide what to do next. This bill would have made one of California’s key consumer protections even better.”

What happens next is not clear. Simitian said in the interview that if SB 20 was passed he would not foresee any additional changes, arguing that the “light touch” of the existing law was enough to keep data holders responsible and proactive, rather than mandating encryption and other technologies like Massachusetts and Nevada have done.

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