One week after Equifax announced the settlement terms of its recent breach, two new breaches are making headlines. First, various outlets reported this week that Capital One, among the top 10 banks by asset size in the US, was victimized by a hacker that gained access to more than 100 million customer accounts and credit card applications in early 2019. The hack is one of the largest data breaches to ever hit a financial services firm. What got compromised? The stolen data includes 140,000 Social Security numbers, 1 million Canadian Social Insurance numbers, 80,000 bank account numbers and an undisclosed number of names, addresses, credit scores, credit limits, balances and other personally identifiable information.
HIPAA Compliance—Cyberattackers Aren’t Fazed
In spite of longstanding HIPAA compliance requirements, and the billions of dollars being invested to ensure HIPAA compliance, it seems that cyberthreats and attackers aren't fazed. Healthcare suffered from some of the largest breaches ever reported in 2015. The breach at Anthem compromised 78.8 million records, and two additional breaches exposed more than 10 million records each1. The following year, 2016, saw the highest number of breaches with 327 reported. The number of breaches in 2017 surpassed 2016, with more than 342 reported. While the number of breaches grew, the number of compromised records dropped from 112 million in 2016 to a little more than 14 million in 2017.
My phone’s been ringing this morning from people wanting to talk about the massive Marriott breach — the revelation that private data associated with up to 500 million people may have been compromised. I’m sure there’s a lot more to learn from the details, but in the meantime, I’ll take a quick minute to jot down some initial thoughts:
Moody's Cyber Risk Group: “Cyber becomes more and more important.”
On November 12, Moody’s announced its intent to start incorporating in its credit rating method the degree to which an organization faces risk of major impact from a cyberattack. This follows the news, back in February 2018, that the Securities and Exchange Commission issued additional guidance on its requirement that public companies must “inform investors about material cybersecurity risks and incidents,” even if they have not yet been the target of a cyberattack.
More than $2.5 trillion in mergers were announced in the first half of 2018—a new record. Ranked by value of the deal, energy and power deals led, followed by media and entertainment, with healthcare and industrials close behind. Industries are converging and organizations are using acquisitions, divestitures, and other forms of asset remix to reposition their businesses. For example, there are numerous mergers among pharmaceutical, life sciences, and biotech companies as they seek to gain traction in a highly fragmented market. EY predicts that the total value of life sciences M&A will surpass $200 billion in 2018. According to Deloitte, technology acquisition is the primary driver of M&A pursuits, ahead of expanding customer bases in existing markets, and adding products or services.