Vulnerabilities / Threats

10/31/2011
12:52 PM
50%
50%

Data Breach Costs: Beware Vendor Contract Fine Print

Organizations often end up paying the consequential costs of data breaches when third-party vendor contracts aren't scrutinized.

My Mistake: 10 CIOs Share Do-Over Worthy Moments
Slideshow: My Mistake: 10 CIOs Share Do-Over Worthy Moments
(click image for larger view and for slideshow)
Whether it's from a vendor improperly securing database information it's hosting for a customer or a storage company that leaves backup information unlocked in a truck, data breaches caused by third parties happen all the time. If organizations are not careful in the way they construct their contracts with those vendors, the organization itself could end up being on the hook for far more of the breach liability than it expected. But if they do it right, they could use that contract as a tool to mitigate risk to their organization.

"As it currently stands, the focus of risk mitigation with respect to security are technical controls and other security measures, and the importance of the contract as a risk mitigating tool is overlooked," said David Navetta, founding partner of the Information Law Group. "As litigation increases in this area, for risk-conscious organizations, the protections in the service provider contracts are going to become very important."

Litigation in these cases of third-party breaches is a common occurrence, frequently with the third-party organization ducking under the radar as their customer gets hammered by class action suits. For example, when a breach that exposed data for 4.9 million active and retired U.S. military personnel was caused by the theft of backup tapes from the car of an employee at Science Applications International Corp. (SAIC), working on behalf of Tricare, in September, the $4.9 billion lawsuit by affected individuals filed last week was lodged against TRICARE and the Department of Defense, not SAIC.

Similarly, Stanford Hospital had a $20 million lawsuit filed against it after an employee at its billing contractor, Multi Specialties Collection Services (MSCS) inadvertently posted patient information on a homework help site online. Stanford has been on a publicity blitz claiming its outsourcer was totally to blame for the breach.

In most cases like those, the details of the actual contract between the organization and the supplier never really become public. Typically they're buried in closed settlement deals and kept locked down with non-disclosures. But John Nicholson, counsel for the global sourcing practice at the Washington, D.C.-based law firm of Pillsbury Winthrop Shaw Pittman, said that suppliers frequently evade the bulk of liability due to poorly drafted service contracts.

Read the rest of this article on Dark Reading.

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
'Hidden Tunnels' Help Hackers Launch Financial Services Attacks
Kelly Sheridan, Staff Editor, Dark Reading,  6/20/2018
Inside a SamSam Ransomware Attack
Ajit Sancheti, CEO and Co-Founder, Preempt,  6/20/2018
Tesla Employee Steals, Sabotages Company Data
Jai Vijayan, Freelance writer,  6/19/2018
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2018-12697
PUBLISHED: 2018-06-23
A NULL pointer dereference (aka SEGV on unknown address 0x000000000000) was discovered in work_stuff_copy_to_from in cplus-dem.c in GNU libiberty, as distributed in GNU Binutils 2.30. This can occur during execution of objdump.
CVE-2018-12698
PUBLISHED: 2018-06-23
demangle_template in cplus-dem.c in GNU libiberty, as distributed in GNU Binutils 2.30, allows attackers to trigger excessive memory consumption (aka OOM) during the "Create an array for saving the template argument values" XNEWVEC call. This can occur during execution of objdump.
CVE-2018-12699
PUBLISHED: 2018-06-23
finish_stab in stabs.c in GNU Binutils 2.30 allows attackers to cause a denial of service (heap-based buffer overflow) or possibly have unspecified other impact, as demonstrated by an out-of-bounds write of 8 bytes. This can occur during execution of objdump.
CVE-2018-12700
PUBLISHED: 2018-06-23
A Stack Exhaustion issue was discovered in debug_write_type in debug.c in GNU Binutils 2.30 because of DEBUG_KIND_INDIRECT infinite recursion.
CVE-2018-11560
PUBLISHED: 2018-06-23
The webService binary on Insteon HD IP Camera White 2864-222 devices has a stack-based Buffer Overflow leading to Control-Flow Hijacking via a crafted usr key, as demonstrated by a long remoteIp parameter to cgi-bin/CGIProxy.fcgi on port 34100.