These things are going on much more than we are being told. Sometimes they occur due to a mistake by an employee or even an intentional action by a disgruntled one. Often, the expanse and complexity of the internet just overwhelms its own operation.
Generally though, there are three causes of these catastrophes:
- The technology staff does not understand the vulnerabilities of their organization’s system. This is not unusual given the tremendous pace of change in technology.
- The tech staff does understand the vulnerabilities but work in an organization where management does not like to hear bad or disconcerting news. Therefore the techs remain silent.
- The tech staff does understand the vulnerabilities and have communicated them to management but management is reluctant to spend money to solve the problem.
It is important to know which of these is correct but the organization usually will not release that information.
IMPLICATIONS
DO YOU KNOW WHERE YOUR DATA IS? It is not really in the “cloud”. That is a misnomer. Your information travels thru the telecommunications infrastructure, including wireless, as it moves from point to point. Your digital information may be in the “cloud” for a second or so and then comes down to earth and lands in a server that sits in a building called a data center. This is where your information is most of the time.
There are two main risks. One is when your digital data is traveling from one place to another. There can be breakdowns within that network of connections that can cause problems. Some of that can be mitigated by better transmission systems, stronger networks, encryption and other security measures. The other risk is where your data resides. If it is on your computer, you can recognize that risk. What often is not recognized is the risk of the data centers. Some are not that secure. Your information can be attacked electronically if the data center lacks certain security features. It can also be impaired, lost or stolen by accident, malfeasance or natural disasters. For instance, some Wall Street firms lost their data at their center when Hurricane Sandy flooded Manhattan. A data center across the river in New Jersey had a different problem. The building did not have enough fuel for the generators and could not get deliveries. They lost power and then lost data.
What is the address where your digital data is stored? Where is it backed up, in the U.S. or elsewhere? You also need to understand that if there is a serious problem the company may not disclose it as there are vague requirements to do so. This is especially important for a business. In a big breakdown, a data center cannot simply flip a switch to restore your data. It could take hours, days or even weeks to recover your data. The most important customers of the data center will get priority and then within those technology customers, their most important customers will get priority. It could get very messy.
The convenience and efficiency of digital information does dramatically reduce the cost of production and transportation of that information compared to print. However, there is a cost for digital security that will eventually be passed on to customers at all levels. In addition, businesses are trying very hard to lobby government to pick up some of those security costs. That will be passed on as taxes.
The discovery of price is an ongoing process.