Privacy Attorney Lisa Sotto says the Epsilon e-mail breach is a warning about the state of data security employed by some third-party service providers. Strong contracts related to security practices must be the norm, not the exception.
"It is the biggest breach we have ever seen; and to say no financial information has been stolen is, well, understating the massive breach and concern," says Neil Schwartzman, founder and chief security specialist at CASL Consulting.
Fraud attempts will escalate, not diminish, as new threats and channels blossom in 2011. Growth in mobile banking and the use of social networks are expected to pose new security challenges, experts say.
American consumers need to know that personal health records must follow government-mandated guidelines for ensuring privacy and security, just as is the case for electronic health records. Otherwise, the use of PHRs may never become widespread.