Yes, U.S. companies must worry about EU GDPR compliance, too. Is your company ready?

With just over three weeks to go until the May 25, 2018, deadline, many U.S. companies are woefully unprepared for the EU’s new General Data Protection Regulation, or GDPR. In fact, quite a few of them don’t yet realize they have to achieve EU GDPR compliance. A new survey by CompTIA found that “A full 52 percent of 400 U.S. companies surveyed are either still exploring the applicability of GDPR to their business; have determined that GDPR is not a requirement for their business; or are unsure.”

Additional findings from the CompTIA study include:

• Only 13% of U.S. companies surveyed reported having achieved full EU GDPR compliance, with 23% “mostly compliant” and 12% “somewhat compliant.”
• Only 25% of U.S. companies surveyed reported being “very” familiar with the EU GDPR.
• Only 22% of U.S. companies surveyed have developed a GDPR compliance plan, and only 21% have conducted data audits and readiness assessments
• Nearly one-third of U.S. companies surveyed mistakenly believe that the deadline for GDPR compliance is the end of 2018.
• 64% of U.S. companies surveyed are unaware of the [very stiff] penalties for not complying with the GDPR.

Respondents to the CompTIA survey listed accountability and allowing users to correct inaccuracies; data transparency and the rights of users to access their data; user consent; data portability; and the “right to be forgotten” as the most challenging aspects of EU GDPR compliance.

U.S. Companies and EU GDPR Compliance

The applicability of the GDPR to your business is not based on where your company is located, but on where your customers are located. If you conduct business with any individuals or organizations in the European Union, you must comply with the GDPR. Further, in addition to customer data; it also governs employee and human resources data.

How serious is the EU about enforcing GDPR compliance among U.S. companies? Last week, EU authorities flatly rejected a request from U.S.-based ICANN, which is in charge of the WHOIS “internet phonebook,” for more time to make WHOIS GDPR-compliant. Yes, that ICANN, and that WHOIS. This was not foisted on ICANN at the last moment; the organization had a two-year lead time to come up with a solution but dragged its feet. Because of the ICANN GDPR debacle, cyber security experts, law enforcement agencies, and IP attorneys fear that the WHOIS directory will become fragmented or go dark on May 25.

What Does the EU GDPR Mean for U.S. Companies?

The EU GDPR is arguably the most comprehensive, far-reaching data privacy law ever enacted. Among other things:

• It will require impacted companies to fundamentally alter their data governance and bake data security into their products, policies, procedures, and systems from day one.
• It will hold your organization responsible if one of your third-party vendors is breached.
• It grants EU “data subjects” sweeping data privacy rights, including data portability, the right to access their data, the right to withdraw consent, and the “right to be forgotten.”
• It mandates that organizations notify the authorities and affected customers within 72 hours of detecting a breach.

Much like HIPAA, the EU GDPR specifies what organizations must achieve, but it does not prescribe the specific technical controls to get there.

Is your organization ready for the GDPR compliance deadline on May 25? Lazarus Alliance has a free GDPR readiness tool. Click here to take your GDPR readiness assessment and download your free report today!

The cyber security experts at Lazarus Alliance have deep knowledge of the cyber security field, are continually monitoring the latest information security threats, and are committed to protecting organizations of all sizes from security breaches. Our full-service risk assessment services and Continuum GRC RegTech software will help protect your organization from data breaches, ransomware attacks, and other cyber threats.

Lazarus Alliance is proactive cyber security®. Call 1-888-896-7580 to discuss your organization’s cyber security needs and find out how we can help your organization adhere to cyber security regulations, maintain compliance, and secure your systems.

The Under Armour breach provides lessons in the do’s and don’ts of enterprise cyber security and compliance with the EU GDPR

Last week, athletic apparel manufacturer Under Armour announced that its popular MyFitnessPal weight loss and fitness tracking app had been hacked, compromising 150 million accounts. The Under Armour breach is the largest data breach so far this year and ranks among the top five to date. It also makes a good case study in the do’s and don’ts of enterprise cyber security. Let’s examine the lessons enterprises can take away from the Under Armour breach and its fallout, especially as the deadline for the EU GDPR approaches on May 25.

If a breach does happen, prompt disclosure is crucial.

The Under Armour breach was discovered on March 25 and disclosed only four days later; compare this to Equifax, which waited several weeks to notify users it had been hacked (and then chose to do so while the nation’s attention was focused on Hurricane Irma), and Uber, which waited more than a year (after attempting to cover the breach up). Prompt disclosure is going to be even more important under the GDPR, which will require organizations to report breaches within 72 hours.

Segment your data, and collect only the data you need.

The Under Armour breach involved only user names, email addresses, and encrypted passwords. The MyFitnessPal app does not collect Social Security numbers or other government identifiers, and payment information is stored separately, in a part of the system the hackers did not breach.

The GDPR requires organizations to bake data security into their products, policies, procedures, and systems from day one. While network segmentation alone does not constitute data security, it goes a long way towards demonstrating due diligence.

The GDPR will also require organizations to provide users with a plain-language explanation of what user data they are collecting and what they intend on doing with it. If you don’t absolutely need a particular piece of personal information to conduct your business, don’t collect it.

Properly encrypt and salt user passwords.

This is where Under Armour dropped the ball. The company states that while “the majority” of the compromised passwords were hashed using the robust bcrypt hashing function, at least some of the passwords were hashed using the notoriously hackable SHA-1 function. Under Armour has not disclosed why only some of the passwords were encrypted with bcrypt. It also has not specified whether the bcrypt-hashed passwords were salted for extra protection, which involves appending random data that is unique to each user and saving it along with their password.

To properly protect user passwords and fulfill the security requirements of the GDPR, make sure you are using a robust hashing function and salting user passwords. As strong as bcrypt is, it is not unbreakable; the Ashley Madison hack involved 36 million passwords hashed using bcrypt.

Do not reuse passwords.

Although the Under Armour breach yielded “only” email addresses and login credentials, not payment data or sensitive personal data like Social Security Numbers, a lot of people use the same set of login credentials on multiple sites. Armed with these credentials, hackers could attempt to use them on banking, shopping, or social media sites and to access victims’ email accounts. This underscores the importance of using a different, strong password for every system, website, and app.

If you have a MyFitnessPal account, you should log in and change your password right now. If you reused your MyFitnessPal password on any other sites, make sure to change those, too.

The cyber security experts at Lazarus Alliance have deep knowledge of the cyber security field, are continually monitoring the latest information security threats, and are committed to protecting organizations of all sizes from security breaches. Our full-service risk assessment services and Continuum GRC RegTech software will help protect your organization from data breaches, ransomware attacks, and other cyber threats.

Lazarus Alliance is proactive cyber security®. Call 1-888-896-7580 to discuss your organization’s cyber security needs and find out how we can help your organization adhere to cyber security regulations, maintain compliance, and secure your systems.

Mueller indictments of Russian cyber criminals put election hacking at top of mind

State officials expressed grave concerns about election hacking the day after Special Counsel Robert Mueller handed down indictments of 13 Russian nationals on charges of interfering with the 2016 presidential election. The Washington Post reports:

At a conference of state secretaries of state in Washington, several officials said the government was slow to share information about specific threats faced by states during the 2016 election. According to the Department of Homeland Security, Russian government hackers tried to gain access to voter registration files or public election sites in 21 states.

Although the hackers are not believed to have manipulated or removed data from state systems, experts worry that the attackers might be more successful this year. And state officials say reticence on the part of Homeland Security to share sensitive information about the incidents could hamper efforts to prepare for the midterms.

Granted, the Mueller indictments allege disinformation and propaganda-spreading using social media, not direct election hacking. However, taken together with the attacks on state elections systems, it is now indisputable that Russian cyber criminals used a highly sophisticated, multi-pronged approach to tamper with the 2016 election. While there have been no reported attacks on state systems since, there is no reason to believe that election hacking attempts by Russians or other foreign threat actors will simply cease; if anything, cyber criminals are likely to step up their game during the critical 2018 midterms this November.

These aren’t new issues; cyber security was a top issue leading up to the 2016 election. Everyone agreed then, and everyone continues to agree now, that more needs to be done to prevent election hacking. So, what’s the holdup?

One of the biggest issues in tackling election hacking is the sheer logistics of U.S. elections. The United States doesn’t have one large national “election system”; it has a patchwork of thousands of mini election systems overseen by individual states and local authorities. Some states have hundreds, even thousands of local election agencies; The Washington Post reports that Wisconsin alone has 1,800. To its credit, Wisconsin has encrypted its database and would like to implement multi-factor authentication. However, this would require election employees to have a second device, such as a cell phone, to log in – and not all of them have work-issued phones or even high-speed internet access.

Not surprisingly, funding is also a stumbling block. Even prior to the 2016 elections, cyber security experts were imploring states to ensure that all of their polling places were using either paper ballots with optical scanners or electronic machines capable of producing paper audit trails. However, as we head toward the midterms, five states are still using electronic machines that do not produce audit trails, and another nine have at least some precincts that still lack paper ballots or audit trails. The problem isn’t that these states don’t want to replace their antiquated systems or hire cyber security experts to help them; they simply don’t have the budget to do so.

Congress Must Act to Prevent Election Hacking

Several bills that would appropriate more money for states to secure their systems against election hacking are pending before Congress, including the Secure Elections Act. Congress can also release funding that was authorized by the 2002 Help America Vote Act, but never appropriated.

The integrity of our elections is the cornerstone of our nation’s democracy. Proactive cyber security measures can prevent election hacking, but states cannot be expected to go it alone; cyber attacks do not respect borders.

The cyber security experts at Lazarus Alliance have deep knowledge of the cyber security field, are continually monitoring the latest information security threats, and are committed to protecting organizations of all sizes from security breaches. Our full-service risk assessment services and Continuum GRC RegTech software will help protect your organization from data breaches, ransomware attacks, and other cyber threats.

Lazarus Alliance is proactive cyber security®. Call 1-888-896-7580 to discuss your organization’s cyber security needs and find out how we can help your organization adhere to cyber security regulations, maintain compliance, and secure your systems.