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Be Smart with your Phone

By Steve Viuker
“In terms of payment systems, smart phones are still an emerging technology,” said Ken Citarella of Guidepost Solutions LLC. “Unless security is built into the technology, there is a tremendous opportunity for misuse. Pay attention to the app you are using. If it is an app prepared by your bank, odds are it is probably safe. As for liability, courts have held that if a customer has been breached, it is not the fault of the bank if money is transferred out of that account. However, a recent case had the court saying that a bank should be aware of funds that are transferred to a location overseas in unusual amounts.”
Jon Trafimow, a partner at Moritt Hock & Hamroff focusing on employment law, said there must be “procedures for encrypting sensitive information on smart phones or laptops that are used outside of the office. There should training that focuses on reporting any problems as soon as possible; including destroying any data on a device if needed.”
Explained Steve Rubin, a partner at Moritt Hock & Hamroff focusing on cybersecurity: “Many employees do not need USB access and perhaps they should be shut down on many computers. Lower level employees do not need that access; there should tiered access, where certain people access certain data and others can’t access any data. Employees should be limited to access data that involves only their job responsibilities.”
Richard A. McGrath, president and CEO of Sturbridge-based McGrath Insurance Group, said there are “state and federal regulations in place that require banks to purchase cyber security liability insurance. Any industry that obtains the personal information of others takes on the ultimate responsibility of having to protect that information. With the right coverage, financial institutions can be better protected from the costs associated with a cyber breach, such as liability, remediation efforts, and fines or penalties.”
“Employees now have the power to access the Internet at work in the palm of their hands through personal mobile devices,” he continued. “Because of this, employers need to be proactive in managing this increasing risk by developing a ‘bring your own device’ policy, and then working to educate employees on best practices when using personal devices in the workplace. Although it is your legal responsibility to protect the private information of your customers, it is also their responsibility to take additional precautions towards protecting their own identity. It can be as simple as adding identity theft coverage onto your existing home insurance policy for a nominal fee.”

Posted on Monday, September 14, 2015 (Archive on Sunday, December 13, 2015)
Posted by Scott  Contributed by Scott


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