THE EQUIFAX HACK
The Equifax Hack :
A Good Lesson For All Of Us BY : ANTHONY MONGELUZO
With the recent bombshell announcement by Equifax that almost 150 million customer accounts have been hacked , every business should acknowledge this wake-up call . Not just large corporations — the Targets , Home Depots , and Yahoos of the world — but every business that owns at least a single computer . Unless you run your business using a 1950s cash register , it ’ s probably a good time to take action .
We had a client that recently incurred nearly $ 400,000 in losses due to hacking because it chose not to invest in the technology it needed to correct a dangerous weakness in its system . Months later , when this client ’ s network began to “ act funny ,” we knew that our worst fears had come true . In this case , because the hacking had been happening for months before it was detected , decent backup files were hard to come by . The client basically had to wipe its entire network clean — close to two hundred computers — and rebuild , computer by computer .
A weak password was one of the culprits for this particular loss , which enabled the hacker to easily gain access to the company ’ s main server . This experience shows how companies can contribute to their own hacking experiences by not fixing weaknesses immediately and by not implementing strong in-house protection policies .
Hackers recognize that large companies are devoting more of their IT budgets to cyber protection , so the hackers are apt to target small- and mid-sized businesses . Using so-called “ social engineering ” techniques , they are able to trick people into clicking on email or social media links that spread viruses within their own computer systems . These hackers then often demand considerable “ ransom ” payments for the release of company files . IT managers target MS Windows and protective firewalls for heightened security protection against hackers . They may , in fact , be better off simply increasing employee training about avoiding these potential traps .
In our own business as IT consultants , we help clients protect themselves using two publicly available computing tools that we install directly on their systems . This software uses a proprietary method to contain a potential virus in the company ’ s junk-mail folders , bar the user from further network access , and notify our company . While it is not 100 percent effective against viruses — no system is — it is certainly far better than going it alone .
The best protection against cyber threats , which can potentially shut down a smallor mid-sized business permanently , is to purchase cyber insurance . Companies with cyber insurance can protect themselves not just from computer losses but also from a host of related costs , including customer notification and credit monitoring , attorney ’ s fees , ransom fees , lost production , and reparation costs . We recommend that every business have at least $ 1 million in protection and that every potential policy be reviewed in depth by both a broker and an attorney . Once you and your team are confident that the coverage is adequate , go ahead and sign away . You will sleep better at night just knowing that you ’ re protected .+
Anthony Mongeluzo is the CEO of PCS , LLC , a 100-person IT service and support company that provides managed technology solutions for organizations in the Delaware Valley . Anthony is also a partner in three other technology companies that provide cyber security , computer forensic , and web services . He is also a technology correspondent for Fox 29 Philly and is a face for small business owners on Fox National news . You can reach Anthony atAnthony @ helpmepcs . com or connect online with him @ PCS _ AnthonyM
27