If you want to have a new best friend and you don’t want to get a dog, tell someone who needs early stage financing you can help them. They WILL become your new best friend, in their mind, whether you want them to or not.
A large number of big foreign banks including HSBC, Royal Bank of Scotland, Barclays, Credit Suisse, BNP Paribas, Standard Chartered Bank, Commerzbank AG, UniCredit SpA, Credit Agricole SA, Societe Generale, and Deutsche Bank AG have been targeted by US regulators and law enforcement for money laundering, sanctions violations and other matters. ‘
There has been an incredible public backlash against regulators for being afraid to hold banks accountable for their actions.
Milton Barbarosh wants to know when a guilty bank will actually be closed?
Citigroup Inc said it agreed to pay $7 billion to settle a U.S. government investigation into mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis. Milton Barbarosh states: Good thing the government gave them bailout money.
2011 saw a number of security breaches including breaches that affected banks, universities, healthcare service providers, and online gaming networks. Among the more notable security and fraud issues reported in 2011 were:
HealthNet – More than 2.7 million policyholders were affected after nine servers went missing from an IBM data center.
University of Wisconsin Milwaukee – The names and security numbers of over 75,000 students and staff were compromised due to malware.
Kiplinger – Though Kiplinger has a reputation of trust in the personal finance advice and business forecast arena, that trust was put to the test after a hacker reportedly stole the user names, passwords, and credit card numbers of nearly 142,000 subscribers.
Citigroup – Another financial services provider was hit in 2011, this time Citigroup. Hackers reportedly got their hands on the personal data of 1 percent of Citigroup’s cardholders.
Fidelity National Information Services – Yet another major hack, this time to the tune of $13 million, took place in 2011.
These are but a few of the many security / fraud cases that took place in 2011. The list goes on and on, and it’s likely to continue well into 2012 and for years beyond.
What can you do to protect your business against security breaches and cyber fraud? We highly recommend considering cyber insurance. Why? If the 2011 security and cyber fraud numbers don’t have you convinced, consider this: not only could a security breach cost your company a huge amount of money, erode trust, and hurt its reputation, it could also expose your company to lawsuits. The damage from a single securities breach could extend for years.
Cyber insurance may even be required by state or federal law. Either way, protecting your company from liability should a security breach arise in 2012 or years thereafter is a smart financial move.
About Milton Barbarosh
Milton Barbarosh is president of Stenton Leigh Group Inc., a full service financial services provider located in Boca Raton, Florida.