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-- facing a major security breach in its jeopardizing private information for thousands of clients while compromising many americans' trust in business -- -- joining us senate discuss how firms to prevent future attacks.
Is Michael -- -- about reputation dot com he's the founder and CEO of that for Michael thanks so much for joining us up this case is especially troubling obviously so much information.
Was breached but also these emails and communications between strapped for which is a security company at think tanks from what I understand as well as -- companies themselves I mean.
From your understanding how significant is this.
-- -- -- -- -- -- -- -- -- -- There's there's a serious side of the story there's -- less serious side I'll start with a serious side anniversary cited that.
This attack was completed by anonymous which is loose affiliation of hackers -- Have proven themselves to be resilient and very good at what they do -- attacking companies they perceive to be antagonistic the interest that they hold.
And it's not just that they're attacking companies that are maybe in the intelligence space are also now fundamentally attacking the trust that -- the economy in other words.
They're exposing information about.
Clients that vendors have their exposing an even using the credit card information that that customers have and that goes to the trust underlying economy that's the serious side.
The -- serious side is that what would happen in this case basically the kind of look at book from 101000 feet.
Is that some of the customer list of strapped for which is a G two intelligence company.
Was exposed and if -- -- kind of brain stormed cool would be to customers of an intelligence company would probably come -- -- 99.9 percent of the people on this list of law enforcement agencies.
-- federal government agencies their financial firms that doesn't mean that we should celebrate the exposure but it puts it in perspective might -- you.
The story of WikiLeaks in which we we learned that.
A lot of diplomatic cables -- US government released.
-- -- turns out guess what the US government talks about its allies and enemies behind closed doors the same way it does how the public so there's no big conspiracy.
There's a kind of wacky element of the story as well which is which a little weird -- of their customers like the Pentagon of the -- of the intelligence services.
How there employees use their personal credit cards to buy products from the intelligence company then reimburse them it's like go get some lunch -- intelligence and will reimburse you labor.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Can they get my credit card rhetoric -- record as a result of that.
That does not follow it's a great question asked but that does not actually happen.
Here's what we're seeing is a series of reports that indicate that it's possible I don't know this yet but it's possible that strapped for even.
Did did doubt missed the opportunity to encrypt the files that anonymous download -- which is a kind of a freshman level mistakes so.
Certainly what's gonna come after this number one.
If if this is happening to a security company like like strapped for -- -- much more important that all of us to do immediately business audits of our security it's impossible for us to allow.
Freshman type mistakes they have been.
But you must encrypt all your data you don't wanna have as in the case of -- fourteen that happened you don't wanna have a file that has all the passwords of all your employees on it.
Anywhere did -- lead it's not a good idea you wanna make sure you're doing an audit I think what's gonna happen now as you're gonna see a large investment.
Across a lot of industries and cyber security in the business sector.
As well as the growth of reputation insurance and privacy insurance and security insurance right cyber security insurance.
Is seems seems to be -- very growing opportunity infield the private sector as it happens in America is gonna come in to fill the breach the government seems to me.
Letting happen the government does not have a lot of resources that if you -- putting two.
Putting to bear on these types of problems of security -- the private sector as always is gonna fill -- hole.
And I think we're gonna see growth of new industries new categories.
That will come protect businesses in this especially.
The trust underlying economy which is the thing that we must protect must most of all right I mean it's certainly shocking Michael that a security company itself.
Was breached I mean -- even surprised to hear us.
I was surprised you know let's put it a little bit of perspective this this seems to amount to a credit card breach plus some email.
I'm strapped fur doesn't describe itself as a cyber security company to describe themselves as an intelligence gathering company.
So I think it's very embarrassing for them.
But it would be more embarrassing I think -- like an anti -- company had suffered this -- or credit card company had suffered this breach but it's still pretty bad I mean there's no way.
There's no way to say this is a minor incident and I do believe that it should be a wake up call.
Right one study I've seen says that this was the 121.
Major breach of credit cards in the United States this year in 2011.
And that's a that's a sign that we got to do better than we're currently doing where we're talking about the fact that people's personal credit cards corporate credit cards.
Private and confidential secret communications between corporations are now being exposed and -- -- -- used.
To make charitable contributions without the knowledge or consent to give people whose credits and that actually are.
Of interest so it isn't it it's its economy holiday story.
Okay videos elect its it should be a wake up call and and certainly strapped for other companies must take this opportunity -- themselves and to invest.
Much -- lot and a lot of those charities may be forced to pay back confines and so forth or at least in some of the charges and he's.
Some of the money that they're gonna have to give us that it's it's it's not without harm but again it is a wake up call Michael -- take.
Reputation dot com is clearly somebody loves this -- Michael thank you very much appreciate you coming on.