We talked about dams, water systems, electricity, and factories.  (Check out the previous two posts here– or just search for cyber in the index on the right.)

But, it’s all of us that are at risk.   I’ve written so many times about identity theft.  The way the federal government plays fast and loose with our personal security- so that 22 million federal employees had their information stolen from the IRS.  And, a higher number had their data stolen from the state department.  That theft also included  personal information about our spies- which meant they were REALLY at risk- at risk of being outed and killed.

Consider this one simple (and terrifying fact).  Over 1/2 billion personal records were stolen or lost- LAST YEAR! (This was reported by Symantec.  I only have records of 429 million- but I won’t quibble over another 75 million or so.)  The number of companies that refuse to report breaches has risen (not fallen) by 85%.  It takes transparency to kill these threats.

It’s because of this – and the publicity- that a new threat is rising.  I’ve had clients call me to complain that the “IRS” called them up and threatened them because they owed taxes.  Which is the new gimmick to steal your money and your identity.  The answer you need to provide these people is “send me a letter;  I will only respond to such requests in writing.”    And, you know you won’t hear anything further from them.

But, some clients foolishly gave these criminals information.  And, now are out big bucks, some even had credit cards taken out in their name (which destroys their credit).  Just because they felt intimidated.  (Yes, the call can be scary- but you need to use some common sense.)

To be honest, that’s what is needed for all employees.  Those clerks or nurses or docs who opened up those eMails that left their hospital systems corrupted.  That locked up all patient data (at least it wasn’t stolen, one administrator had the temerity to declaim), forcing the system to pay ransom.

And, it’s happened to law firms, too.  Sure, the big firms (like Weil, Gotschal, and Manges, and Cravath, Swaine, and Moore) were hit.  But so were smaller entities.  Because these firms have confidential data that belongs to their clients.  Data they were entrusted to keep secret.

Why would foreign entities want this data?   Because corporate espionage helps their country’s firms compete against domestic firms.  Intelligence agencies are seeking out data of firms that are preparing joint ventures, making investments, or acquiring other firms.   And, these government agencies do not consider it a crime to steal data to help their country’s businesses.

Some of these hacks have just involved the stealing of client lists. (These were not from intelligence agencies- we think!)  And, then sending eMail purporting to be from the hacked entity.  Which either gets the hacker more current data or affords them “safe entry” into that firm’s computer systems, since the eMail is considered coming from a friendly source.

We have been advising our law clients to take these breaches seriously.  To use complicated wireless passwords (should they use wireless at all).  To disallow employees from choosing inane passwords or writing them down on stickies attached to their computer screens.  To train employees to NOT open mail attachments that have not been scanned for safety- from clients.  From non-clients or opposing counsel, they are told to accept nothing.  (If it really is important, someone will call and ask about it.   These folks will understand the safety measures taken.)   To have bot checkers running.  And, to examine for intruders all the time.

Because we all have to take our safety seriously.

Maybe the government will join this crusade soon.  And, tomorrow (the last one- for now), I will explain how your employer may be ruining your life, too.  (No cracks about unpaid overtime, either!)

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