With 2015 fast approaching Espion predicts some key Information Governance and eDiscovery trends during the coming 12 months.
- Data Protection Will Move From Being “High On” to “Top Of” Boardroom Agendas
Widely expected to be adopted in 2015, the new EU Data Protection Regulation (GDPR), is likely to raise the bar for compliance and could stipulate fines of up to five per cent of global turnover for data breaches. Espion believes 2015 will be the year that organisations can’t afford anything less than making Information Governance top priority.
Expect ample boardroom discussions around understanding and preparing for updated regulation and compliance.
- Medical Matters – Booming Black Market for Personal Medical Data will Spur Mass Outrage
According to recent FBI investigations into stolen data on the black market, medical records are worth ten times more than credit card numbers. If the healthcare industry is set to be rich pickings for hackers, Espion believes consumers will see any risk to their sacrosanct medical history as the tipping-point.
With the Information Commissioner’s Office (ICO), reporting the number of data breaches in the UK healthcare sector has doubled since 2013, any medical records that are wrongly disclosed, maliciously accessed or lost, will putgreater focus and scrutiny on protection of sensitive personal medical data.
- 2015 – A Big Year for Predictive Coding and Smart Analytics
An imminent landmark judgement, which will decide if evidence gathered from Predictive Coding (also known as Technology Assisted Review (TAR)) is permissible in Irish courts, could pave the way for a new frontier in legal technologies.
Since The New York Times infamously forewarned “Armies of Expensive Lawyers, Replaced by Cheaper Software”, Predictive Coding has been a topic shrouded in myths. At this critical juncture Espion believes eDiscovery professionals need to dispel misconceptions that this technology will replace existing methods and demonstrate that TAR can be integrated in a number of other ways to enhance current eDiscovery methodologies.
2015 should be the year for legal stakeholders to cooperate and spearhead transparencies and best practices for the common purpose of advancing the field of discovery for the wider good.
- Internet of Things (IoT) – A New Frontier for those Gathering Evidence
The IoT continues to introduce new levels of interconnectedness which is generating an explosion of new data detailing every aspect of our lives.
Could 2015 be the year when data from your Smartwatch is your “get out of jail”? Already in the US McLeod Law has collected data from a fitness band FitBit, to prove their client is suffering from the effects of an accident in a case around insurance fraud.
- Growth in the Cyber Insurance Market
UK insurers, the Cabinet Office, UK Trade & Investment, Department for Business, Innovation & Skills, and GCHQ, recently pledged to make the UK one of the safest places to do business in cyberspace. They announced a plan to grow the cyber insurance market and improve online security for UK businesses.
According to the 2014 Information Security Breaches Survey, 81 per cent of large businesses and 60 per cent of small business suffered a cyber security breach in the last year and the average cost of breaches to business has nearly doubled since 2013.
The risk to business in the UK and globally is growing with most leading insurance providers offering some form of cyber breach insurance. Espion expects uptake will grow but advises insurance does not negate their duties to address the risks of a cyber attack.
- Dash to Make Payment Facilities Safe – Organisationswill Scramble to Meet Compliance with New Payment Card Industry Standard (PCI DSS) V3.0.
There are just a handful of days until 1 January 2015 deadline, before organisations that store, process or transmit cardholder data with the Visa, MasterCard, American Express, JCB International and Discover logos must start using PCI DSS V3.0 when they validate their compliance.
The Verizon 2014 PCI Compliance Report showed only 11.1 per cent of organisations fully complied with the requirements of PCI DSS, and only one in five organisations came close to complying and passed 95 per cent + of controls. How will they fair 1 January 2015 when V3.0 becomes mandatory?
Organisations will have a little more time to address more rigorous Penetration Testing rules which become mandatory from 1 July 2015. Looking ahead Espion believes the Security Standards Council will continue to follow a strategy of greater emphasis on effective Penetration Testing based on standard methodologies and relevant certifications in future revisions.
- Sophisticated Whaling Scams on Course to Net the Big Fish
Spear phishers are doing their homework, trawling the internet to fact-find and build profiles of senior executives to create highly targeted and plausible scams that even the most cautious of users would find it difficult to spot as non-legit.
With Symantec research revealing a shocking 91 per cent increase in spear-phishing attacks from 2012 to 2013, organisations would be wise to allocate resources to building their human firewall though information security awareness training.
- Windows Server 2003 Refresh the Catalyst for Making Cloud Mainstream
July 2015 has been billed as the most significant ‘refresh’ this century as Microsoft discontinues support for its Windows Server 2003 product. The Cloud Industry Forum predicts as many as 1,000 servers a day will need upgrading in the countdown to the end of support.
Espion believes this could accelerate cloud adoption rates with large numbers of organisations taking the plunge and migrating to the cloud. However latest figures from Eurostat highlight cloud security remains a barrier for CIOs across Europe with the risk of a security breach scoring highest for both large enterprises and SMEs, at 57 per cent and 38 per cent respectively.
- Retail Will Look to Point-to-Point-Encryption (P2PE) to Combat Point-of-Sale Malware
2014 saw one of the largest ever data breaches hit the retailer sector. In the US malware installed on point-of-sale (POS) terminals across 2,200 Home Depot stores syphoned credit cards details of up to 56 million customers. Investigators believe another major breach, at fellow US retailer Target, resulted from malicious software installed on point-of-sale terminals.
With point-of-sale malware now one of the biggest sources of stolen payment cards for cybercriminals Espion believes P2PE will be much more widely adopted by the retail sector in the coming months.
- Sophisticated Monitoring Technologies will become Mainstream
National Institute of Standards and Technology (NIST) describes continuous monitoring as a key component of a comprehensive security plan: one that incorporates proactive automated alerting in conjunction with essential vulnerability management techniques such as regular network and application penetration testing.
With major technology players including Qualys, Tenable and Rapid 7 offering enterprise level solutions to continuously monitor mission critical assets, Espion believes vulnerability management is heading for a paradigm shift where both real-time and periodic deep dive assessments provide invaluable insight to the security posture of your environment.
England soccer star Rashford nets younger buyers for Burberry
By Sarah Young
LONDON (Reuters) – Burberry stuck to its full-year goals on Wednesday after a media campaign fronted by high-profile English soccer star and social justice advocate Marcus Rashford drew a younger clientele to the British luxury brand.
Higher full-price sales would boost annual margins and Asian demand remained strong, Burberry said, while warning that it could suffer more sales disruption from COVID-19 lockdowns.
Manchester United striker Rashford, 23, has won plaudits for his campaign to help ensure that poorer children do not go hungry with schools closed during the pandemic.
A first coronavirus wave last year cut Burberry’s sales by as much as 45% before a bounce back on strong demand in mainland China and South Korea, which continued in the last few months.
Shares in Burberry were up 5% to 1,825 pence at 0905 GMT, with Citi analysts saying that improved sales quality from fewer markdowns would drive full-year consensus upgrades.
Burberry’s 9% sales decline in its third quarter was worse than the 6% fall in the second, and the company said that 15% of stores were currently closed and 36% operating with restrictions as a result of measures to curb COVID-19’s spread.
“We expect trading will remain susceptible to regional disruptions as we close the financial year,” Burberry said, adding that it was confident of rebounding when the pandemic eases given the brand’s resonance with customers.
In the third quarter, comparable store sales in Europe, the Middle East, India and Africa declined 37%, hit by shops shut in lockdowns and a lack of tourists visiting Europe, but in the same period, it posted sales growth of 11% in Asia Pacific.
Burberry said that Britain’s new relationship with the European Union would cause headwinds, warning of a modest increase in costs to comply with new rules and also the impact of an end to a scheme for VAT refunds for non-EU tourists.
This would make Britain a less attractive destination for luxury shopping when tourism returns after the pandemic, Burberry said, adding that it would try to mitigate the effect.
(Reporting by Sarah Young; Editing by Kate Holton, James Davey and Alexander Smith)
Alibaba’s Jack Ma makes first live appearance in three months in online meet
SHANGHAI (Reuters) – Alibaba Group founder Jack Ma met 100 rural teachers in China via a live video meeting on Wednesday morning, in the businessman’s first appearance since October, triggering a sharp jump in the Hong Kong listed shares of the e-commerce giant.
Social media speculation over the whereabouts of China’s highest-profile entrepreneur swirled this month after news reports that he missed the final episode of a TV show featuring him as a judge, amid a regulatory clampdown by Beijing on his sprawling business empire.
Ma had not appeared in public since Oct. 24, where he blasted China’s regulatory system in a speech at a Shanghai forum that set him on a collision course with officials, leading to suspension of a $37-billion IPO of Alibaba’s financial affiliate Ant Group.
Tianmu News, a news portal under Zhejiang Online, which is backed by the provincial Zhejiang government, first reported that Ma had met with the teachers via a live video conference on Wednesday.
The Jack Ma Foundation said that Ma participated in the online ceremony of the annual Rural Teacher Initiative event on Wednesday. Alibaba Group also confirmed that Jack Ma attended the online event.
Alibaba’s Hong Kong-listed shares jumped more than 6% after the reports of his reappearance, compared with a 0.64% rise in the Hang Seng index.
Ma’s public appearance comes as Alibaba plans to raise at least $5 billion through the sale of a U.S. dollar-denominated bond this month. Reuters reported the bond proceeds could reach $8 billion, which the e-commerce leader was likely to use for general corporate expenditure.
Alibaba is also the target of an antitrust investigation launched last month by Chinese authorities, who have in recent months accelerated a crackdown on anticompetitive behaviour in China’s booming internet space.
In the 50-second video, Ma, dressed in a navy pullover, spoke directly to the camera from a room with grey marble walls and a striped carpet. It was not clear from the video or the Tianmu News article where he was speaking from.
He addressed teachers receiving the Jack Ma Rural Teachers Award, who in previous years would have attended a ceremony organised by the Jack Ma Foundation in the Chinese seaside city of Sanya.
“We cannot meet in Sanya due to the epidemic,” he said in the speech, which did not discuss his whereabouts. “When the epidemic is over, we must find time to make up for everyone’s trip to Sanya, and then we will meet again!”
Xie Pu, founder of Chinese tech website Techie Crab, said the media and public had over-interpreted Ma’s move to lay low and that his step away from the public spotlight should not have been seen as a problem for Alibaba.
“We shouldn’t over-interpret his reappearance into public view this time, said Xie Pu, founder of Chinese tech website Techie Crab. “Alibaba still has a good governance structure — there are partners and a board of directors.”
(Reporting by Brenda Goh in Shanghai, Kane Wu and Sumeet Chatterjee in Hong Kong, Yingzhi Yang in Beijing; Editing by Tom Hogue and Gerry Doyle)
ComplyAdvantage Releases State Of Financial Crime Report For 2021
Designed as an must-have strategic roadmap for compliance teams, the comprehensive report covers financial crime insights related to fraud, cyber, and money laundering, the rise of crypto,
and the ever-changing sanctions landscape
ComplyAdvantage, a global data technology company transforming financial crime detection, today announced the availability of the firm’s much anticipated report The State Of Financial Crime 2021. Designed as a strategic guide for global compliance teams, the report lays out the many emerging threats that governments and financial institutions will face in 2021, along with prescriptive recommendations for implementing best compliance practices for combating financial crimes.
The research on which The State Of Financial Crime 2021 report is based was administered in November and December 2020. Interviews were conducted with 600 C-suite and senior compliance decision makers across North America, Europe, and Asia Pacific. The respondents represented enterprise banking, investments, crypto, insurance organizations, and fintechs.
One of the biggest challenges that compliance teams face is keeping current on the rapidly evolving regulations, and the advances of criminal behavior while balancing their organizations’ risk appetite. Risk indicators are also becoming harder to spot as the amount of information available grows exponentially and the speed of change gathers pace. This is why ComplyAdvantage has dedicated the company’s resources and anti-money laundering (AML) expertise in order to help compliance executives mitigate regulatory risks related to the most extreme AML financial crimes.
The State Of Financial Crime 2021 delves into the most important financial crime trends that Compliance Officers are most concerned with in the coming year. Specifically, these trends include increased fraud related to COVID-19 relief; risk vulnerabilities related to inconsistencies in global AML and counter financing of terrorism (CFT) system; the growth in sophistication of computer and mobile-enabled cybercrimes via payment systems; the continued use of sanctions as a tool of first resort and more.
A sample of key insights from the report include:
- SARs filing was on the rise with 74% of respondents saying they filed more SARS in 2020 than the previous year
- 93% of respondents stated that real-time AML risk data would improve their compliance operations
- Cybersecurity and third party risk management were noted as organizations’ biggest compliance-related pain points in 2020. With 54% of respondents ranking cybersecurity as a top pain point.
- 62% of respondents plan on upgrading their legacy systems in 2021.
- 54% of respondents plan on replacing or upgrading their transaction monitoring system in 2021.
“Due to the massive economic, political and social disruption brought about by COVID-19, international crime syndicates, rogue nations, global terrorists and cyber-criminals have become increasingly more aggressive, “said Charles Delingpolefounder and CEO of ComplyAdvantage. “Therefore, we felt it was imperative to prepare Compliance Officers and their teams for the potential onslaught of financial crimes driven by nefarious organizations.
Already the preferred choice of some of the world’s largest banks, enterprises and high-growth fintechs, ComplyAdvantage uses machine learning and natural language processing to help regulated organizations manage their risk obligations and prevent financial crime. The company’s proprietary database is derived from millions of data points that provide dynamic, real-time insights across sanctions, watchlists, politically exposed persons, and negative news. This reduces dependence on manual review processes and legacy databases by up to 80% and improves how companies screen and monitor clients and transactions.
ComplyAdvantage releases The State Of Financial Crime 2021 a comprehensive report covering financial crime trends related to fraud, cyber, and money laundering. #compliance #financialcrime #AML #antimoneylaundering #cybercrime
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