"The first step is for banks to admit there is a problem before they can address it, and many bankers are still in denial," says Shirley Inscoe, author of the book "Insidious: How Trusted Employees Steal Millions and Why It's So Hard for Banks to Stop Them."
"Any other bank could have just as easily been victimized," says banking fraud expert Shirley Inscoe, following the arrest of a former Citigroup executive charged with embezzling more than $19 million.
The database has become the main target for hackers and negligent insiders, as the insider breach at Bank of America showed. A recent survey highlights the need for financial institutions to enhance security measures to mitigate threats and losses.
The California Supreme Court has ruled that a key provision of a tough state medical privacy law is not preempted by federal regulations. The evolving case, which eventually could wind up before the U.S. Supreme Court or grow into a class action case at the state level, is worth watching.
A silver lining is emerging behind the rash of breaches that occur all too regularly. The fact that these breaches make the public more aware of the vulnerabilities is encouraging in efforts to make the Internet safer for all.
Three recent breach incidents, each involving the loss or theft of back-up drives, illustrate that some organizations are doing a better job than others in informing consumers about the steps they're taking to prevent more breaches.
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.
What's embarrassing about the WikiLeaks episode isn't just the precarious position the publication of diplomatic cables put the U.S. in with its allies but the likelihood that one, low-level analyst accessed sensitive data without authorization and then leaked them.