Can Data Analytics Improve the Security of Customer Data?

by Fronetics | Aug 15, 2018 | Blog, Customer Service, Data Security, Data/Analytics, Logistics, Strategy, Supply Chain

Data breaches are all over the news lately, but data analytics may be the key to tighter security — and better customer service.

A growing number of high-profile organizations have been in the news recently for data breaches that put customers at risk, and the trend shows no signs of stopping. Collecting data about customers allows organizations the advantage of personalizing their services, but safeguarding that data comes with major security concerns.

[bctt tweet=”Collecting data about customers allows organizations the advantage of personalizing their services, but safeguarding that data comes with major security concerns.” username=”Fronetics”]

Data analytics, or the way organizations process the information they collect to learn about their customers, is becoming increasingly effective at de-anonymizing large amounts of data and tying it back to specific individuals. While personalized data is a goldmine in terms of marketing and services, it’s also exactly what cyber-criminals target.

But information expert Sam Ransbotham, in the MIT Sloan Management Review, says that de-anonymizing people through data analytics coud be a powerful security tool itself, and can even improve customer service along with way.

How data analytics plays into security

Ransbotham points out that authenticating identity is one of the most important parts of keeping data secure. Whether online or over the telephone, authenticating your identity usually means answering a string of questions first to identify your account and then to affirm that you are who you say you are.

Data analytics, however, offer a better way of authenticating identity. A number of companies in the banking sector have already begun to use speech processing to identify a caller’s voice based on recordings of previous telephone calls. These “voiceprints” can confirm identity almost instantly and reduce the chance of someone stealing a personal identification number (PIN).

Using an automated system of voice-data analysis gives banks the added benefit of being able to adjust their security protocols for all customer service interactions at once. This allows for faster responses to updated assessments of security threats, rather than having to re-train customer service representatives.

Customer service advantages

Instead of making callers identify themselves by answering “security challenge questions,” data analytics allows the security process to take place behind the scenes. Customers experience a more streamlined calling experience that immediately addresses their needs. They save time and are spared the hassle of answering questions to identify themselves.

Security challenge questions are, Ransbotham says, “adversarial by design. … This authentication process must begin with the assumption that the caller is a malefactor impersonating the real customer.” By performing the authentication process behind the scenes, voiceprints help re-define the customer service experience as helpful instead of combative.

Organizations, in turn, can save time on employee training. They can focus on training employees for service rather than security.

Data analytics does not have to involve a trade-off between security and service. Techniques like collecting and analyzing voice data can actually start providing solutions to some of the security concerns that data collection raised in the first place.

As Ransbotham suggests, data analytics has the potential for further applications. Voice analysis can detect speech patterns that indicate if someone is being coerced or suffering from impairment, which could be adapted for security and service purposes, too.

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Apple’s New 6-Digit Passcodes: What Do They Mean for Your BYOD Policy?

by Fronetics | Nov 25, 2015 | Blog, Data Security, Data/Analytics, Strategy

Apple has been making lives easier for years with its personal electronics devices, and its new step towards security will bring relief to many people and, in the age of BYOD (bring your own device) many businesses with be grateful. An increase in two digits, from four to six, might not sound like a big difference, but, in fact, it is. With a four digit passcode there are only 10,000 possible combinations, and the bump up to six digits allows for 1 million possible combinations. According to the website Cult of Mac, “With a brute-force computer, it takes on average 40 seconds to attempt every passcode; theoretically, it would take a maximum of 111 hours, or 4.5 days, for a computer to crack a four-digit passcode. Bump it up to a six-digit passcode and it’d take the same machine 11,000 hours, or 458 days.”

The Age of Flexible Work Arrangements & BYOD

Companies and employees are increasingly going the route of allowing personal devices to be used in the workplace, and allowing people to work from home. According to a recent study by the Quarterly Review of Economics, people who work from home are more productive (the study showed a 13% increase), less exhausted, and less likely to leave a job. As more people work from home and on the road, and want to immediate access to their personal and professional information, BYOD has become popular.

According to a thorough Ponemon Institute study on the security impact of mobile device use by employees, many employees want to use their cell phones, but don’t have a full grasp of how security is being impacted or could be breached. Here are some telling numbers:

70% of respondents said that BYOD makes them more productive because they have access to personal and professional information in one spot
A total of 62% of the respondents reported that access to corporate information via mobile devices is “essential” to productivity
38% said that they are more efficient and work time was reduced by roughly 30 minutes
Only 20% of participants reported receiving training on security of corporate content on mobile devices. Of those who were trained, 74% reported that it was not helpful in reducing security threats on mobile devices.
66% said that they “frequently” or “sometimes” download apps that aren’t approved by their companies
Only 19% check for viruses or malware, and 22% believe this behavior invites any danger to their company

Can a Passcode Fix Security Problems

Apple’s new security option is going to help, no doubt. Breaching a password is one issue, but security concerns extend beyond passwords. One of the major benefits of Apple’s new passcode option is that many companies will have to review their mobile device policies. Emails, client information, legal documents, finances, and other important information are sent from and stored in mobile phones. To say this is delicate information is an understatement.

Here are some suggestions for tightening security:

Review all vulnerabilities in security including devices, networks, and applications
Require password protection
Have detailed security protocols for each electronic device
Determine which activities can be performed and which can’t on devices
Consider periodic IT check-ups on devices

In the modern workplace, being able to balance flexibility with security is key to a productive and safe business. Properly training employees, setting clear expectations, and instilling trust in employees is important. If employees are trusted they will want to protect your company’s valuable information, but they can’t do the right thing without clear and accessible policies.

This post originally appeared on Electronics Purchasing Strategies.

IT Asset Disposition: Ensuring That You’re Insured

by Fronetics | Oct 29, 2015 | Blog, Leadership, Logistics, Strategy, Supply Chain

We know that with the increasing growth of cyber-hacking and data breaches, investing in IT asset disposition (ITAD) is a growing necessity for companies. It is critical to ensure the safety of a company’s confidential live and stored data on all of its assets, ranging from computers, phones, servers, and hard drives. If breached, a company’s reputation, consumer base, finances and future viability are all at risk. What happens to data and technological gear after it is retired can be equally as critical as the current live data and in-service equipment. Proper disposal is not only important to the integrity and success of the company, its partners, and clients, but it may also protect the environment. While some sectors have strict regulations and requirements regarding ITAD, others do not, but whatever the case, the ethical obligation is huge.

The Cost of Hacking and Breaches

Akamai Technologies’ State of the Internet report showed that “hacker attacks on websites went up 75% in the final quarter of 2013, with hackers in China responsible for 43% of all attacks.” More recently, in 2014 the Cost of Cyber Crime Study was conducted by Ponemon and sponsored by HP. It found that crimes are more expensive, happen more frequently, and require more time to resolve than ever. It also found that crimes happened across various sectors (see below).

2014 Cost of Cyber Crime Study

The average annualized cost of cyber crime was $12.7 million, with a range of $1.6 million to $61 million; an increase of 9 percent or $1.1 million over the average cost reported in 2013.
There are an average of 138 successful attacks per week, compared to 50 attacks per week when the study was initially conducted in 2010.
The average time to detect a malicious or criminal attack by a global study sample of organizations was 170 days. The longest average time segmented by type of attack was 259 days, and involved incidents concerning malicious insiders. The average time to resolve a cyber attack once detected was 45 days, while the average cost incurred during this period was $1,593,627 – representing a 33-percent increase over last year’s estimated average cost of $1,035,769 for a 32-day period.

ITAD: A Growing Business

According to TMR as reported in IT: Connect and Expand, the ITAD market will expand to $41 billion by 2019 on 141 million tons of used equipment. With the heavy responsibility that goes with ITAD in terms of proper wiping, disposal, reusing and recycling, more companies are working with 3^rd-party service providers who specialize in ITAD. According to Business Wire 65 percent of companies larger than 10,000 workers, and up to one third of all businesses, are turning to 3^rd-party service providers to manage end-of-life assets.

What if something goes wrong?

It makes sense with the increase of cyber crime that there would be cyber insurance. This may be one solution to protect yourself, however, according to observations made on the site Dark Reading, “cookie-cutter” cyber insurance might not be everything you need.