Wednesday, November 4, 2015

Closing in on Bullseye: breach | loss | downsize

The Minnesota retail giant, Target, is closing 13 stores in January due to declining profits…which follows closing of 133 Canada stores, laying off approx. 17,000 people around the same time a year ago.  But let's recap the late 2013 data breach which likely did not help the big brand:
40 Million credit cards,
70 Million personal records,
46% drop in profits in 2013 Q4,
$10 Million in settlements,
$100 Million in replacement/issuance for banks and credit unions,
$100 Million in payment terminal upgrades / Chip-and-PIN (which likely would not have prevented the breach anyway),
No security lead / responsible and of course,
Replacement of CEO and new CISO role within 6 months after breach.

Business model, marketing, culture, etc. has a lot to do with company's success but let's focus on IT Security lessons learned:
Know your threats, risks, and leverage threat intelligence and improved collaboration,
Triage capability to know when to ignoring noise vs. addressing real issues promptly,
Security must be part of the business equation with security executive level accountability,
Expeditious communication to respond accordingly (containment, eradication, resiliency) but also transparency and PR for customers and industry,
Interconnection of networks require proper segmentation, third party due diligence, and proper account (de)provisioning
Realize liability from banks, for example, looking to recoup cost of re-issuance
No silver bullet e.g. EMV (Europay, MasterCard, Visa) will not solve/prevent all threats
Do address weakest link, your brand depends on it

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