Cyber Security and the Global
Business Environment
Jeremy Schaar:)
3 Questions
• What is the nature of the cyber security
threat?
• What can companies do about it?
• What are the broader implications for
international business?
Two Truths and a Lie
• Thousands of restaurants are hacked in the
U.S. each year, affecting millions of customers.
• 96% of all data breaches were rated “not
highly difficult” last year.
• A Romanian gang stole information from 200
Subway restaurants over 3 years.
A Burger, an Order of Fries, and
Your Credit Card Number
Two Truths and a Lie
• Hundreds of restaurants are hacked in the U.S.
each year, affecting hundreds of thousands of
customers.
• 96% of all data breaches were “not highly
difficult” last year.
• A Romanian gang stole information from 200
Subway restaurants over 3 years.
Two Truths and a Lie
• In 2011 personal information was stolen from
over 100 million users of Sony’s PlayStation
Network, Qirocity, and Sony Online
Entertainment services.
• In a 2010 study, 58% of corporate directors and
executives said they now have an IT or Data
Security Committee.
• Identity theft topped the U.S. Federal Trade
Commission's (FTC) consumer complaint list for
the 11th consecutive year in 2010.
Sony’s Cyberattack And How
Companies Fail In Data Security
Sony’s Cyberattack And How
Companies Fail In Data Security
Sony’s Cyberattack And How
Companies Fail In Data Security
Implications
Recruit Data Security Experts
Involvement at the Highest
Levels
Develop ReputationProtection Programs
Two Truths and a Lie
• In 2011 personal information was stolen from
over 100 million users of Sony’s PlayStation
Network, Qirocity, and Sony Online
Entertainment services.
• In a 2010 study, only 6% of corporate directors
and executives said they now have an IT or Data
Security Committee.
• Identity theft topped the U.S. Federal Trade
Commission's (FTC) consumer complaint list for
the 11th consecutive year in 2010.
Two Truths and a Lie
When Kenneth G. Lieberthal, a China
expert at the Brookings Institution,
travels to China he…
• Removes his cell phone’s battery in
meetings.
• Hides his hands under a towel before
he types his password.
• Only brings “loaner” devices, which he
erases before and after the trip.
Traveling Light in a Time of Digital
Security
“If a company has significant intellectual property that the Chinese and Russians are
interested in, and you go over there with mobile devices, your devices will get
penetrated.”
-Joel F. Brenner, formerly the top counterintelligence official in the office of the
director of national intelligence.
“Everybody knows that if you are doing business in China, in the 21st
century, you don’t bring anything with you. That’s ‘Business 101’—at least it
should be.”
-Jacob Olcott, a cybersecurity expert at Good Harbor Consulting
“In looking at computer systems of consequence — in government, Congress, at
the Department of Defense, aerospace, companies with valuable trade secrets —
we’ve not examined one yet that has not been infected by an advanced persistent
threat.”
-Mike McConnell, a former director of national intelligence
Traveling Light in a Time of Digital
Security
US Chamber of Commerce Attack
•Alerted in 2010
•Four of its members that go to China
were being attacked
•Lost six weeks worth of emails with
member organizations (huge
companies)
•Office printer and thermostat in one of
their corporate offices were
communicating with an IP address in
China
•No more taking devices to China
Traveling Light in a Time of Digital
Security
“We’ve already lost our manufacturing base. Now we’re losing our R.& D. base. If we
lose that, what do we fall back on? In most cases, companies don’t realize they’ve
been burned until years later when a foreign competitor puts out their very same
product — only they’re making it 30 percent cheaper.”
--Scott Aken, a former F.B.I. agent who specialized in counterintelligence and
computer intrusion.
Two Truths and a Lie
When Kenneth G. Lieberthal, a China
expert at the Brookings Institution,
travels to China he…
• Removes his cell phone’s battery in
meetings.
• Never types his password.
• Only brings “loaner” devices, which he
erases before and after the trip.
Summary
• Customer data (credit cards) and proprietary
secrets are stolen through broad internet
searches and personal attacks.
• Companies need top involvement to secure
their systems and train their people.
• Global Security Market to reach $80 billion by
2017.