in

This Blog

Syndication

Tags

News

AlertBoot offers a cloud-based full disk encryption and mobile device security service for companies of any size who want a scalable and easy-to-deploy solution. Centrally managed through a web based console, AlertBoot offers mobile device management, mobile antivirus, remote wipe & lock, device auditing, USB drive and hard disk encryption managed services.

Archives

AlertBoot Endpoint Security

AlertBoot offers a cloud-based full disk encryption and mobile device security service for companies of any size who want a scalable and easy-to-deploy solution. Centrally managed through a web based console, AlertBoot offers mobile device management, mobile antivirus, remote wipe & lock, device auditing, USB drive and hard disk encryption managed services.

Cost Of A Data Breach: Sony's Insurer Says They Don't Need To Pay

Did another reason for being proactive when it comes to data security just pop up?  (As opposed to the usual practice of taking a look at data vulnerabilities after it happens?  Because that happens a lot.  You have no idea how many companies decide to deploy laptop encryption software after a computer goes missing).

According to a lawsuit filed in New York, Zurich American Insurance is suing Sony, stating that they are not under any obligations to indemnify the Japanese electronics company for its massive data breach earlier this year.

Just to reiterate: this is an insurance company suing its client because it doesn't want to pay for a claim.  That's certainly not something one kind of expects to happen after a data breach.

Some Definite Numbers and Facts

The problem with the internet that any rumor is reported far and wide.  I've been waiting to see some official numbers, and what is better and more definitive than a court document?  According to Zurich's lawsuit:

  • 58 class action lawsuits have been filed against Sony (4 of them in Canada)
  • 77 million PSN customers/users were affected by the data breach earlier this year
  • Sony has been investigated "by one or more state attorney general’s offices, the Federal Trade Commission, and the House Subcommittee on Commerce, Manufacturing, and Trade"

Yep, this is the kind of data breach that is going to cost beaucoup de moolah.  It only makes sense that Sony would have turned to its insurer and said, "hey, time to pay up."

And, it also makes sense that the insurer turned around and said, "nothing doing, brother."  After all, the potential liabilities are humongous.

I've noticed that many companies are coming out with coverage for liabilities stemming from data breaches.  An organization may be lulled into believing that, with such insurance, they're covered in the event of a data breach (and subsequent lawsuit).  The above case that things may not be as clear cut.

The best approach to minimizing exposure from data breaches still involves preventing one from happening.  Call me biased, but I'd take the use of good, strong encryption software over insurance any day.


Related Articles and Sites:
http://www.databreaches.net/wp-content/uploads/Zurich_Sony.pdf
http://www.databreaches.net/?p=19747

 
<Previous Next>

Data Encryption: Beth Israel Medical Says Virus Stole Information

Credit Card Encryption Decoded In StudentCity.com Hack

Comments

No Comments

About sang_lee

Sang Lee is a Senior Account Manager and Security Analyst with AlertBoot, Inc., the leading provider of managed endpoint security services, based in Las Vegas, NV. Mr. Lee helps with the deployment and ongoing support of the AlertBoot disk encryption managed service. Prior to working at AlertBoot, Mr. Lee served in the South Korean Navy. He holds both a B.S. and an M.S. from Tufts University in Medford, Massachusetts, U.S.A.