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Data breaches and Internet of Things risks are among cybersecurity executives’ top concerns

As the RSA security conference in San Francisco nears, security executives are thinking about risks from breaches and Internet of Things devices. Photographer: Daniel Acker/Bloomberg

With the annual RSA security conference in San Francisco on the horizon, CEOs and other security executives are thinking about breaches, Internet of Things devices and the need for government support in fighting cybersecurity threats.

This year will be an important year for technology, as Section 215 of the Patriot Act, which covers government surveillance, expires at the end of May. The stakes have also risen from data breaches, which have now become fireable offenses for CEOs.

Big companies like Google Inc., Facebook Inc. and LinkedIn Corp. have all signed a letter asking for Section 215 of the Patriot Act to be amended to reform this section, as security is on their minds. Edward Snowden’s revelation two years ago about the National Security Agency’s practices also drew people into the security scene who had no idea the government had a pipe going from your cloud provider to the NSA.

Still, many prominent tech executives chose not to attend President Barack Obama’s cybersecurity summit at Stanford University this year.

Data breaches by attackers have taken the spotlight because of various states’ new data breach notification laws that have come about in the past decade, and companies needed to start notifying clients when a breach has occurred. High-profile breaches like those at Target Corp., Home Depot, Sony Pictures Entertainment Inc. and others have grabbed consumers’ attention.

We sat down with some of the top executives at security companies in the Valley, separately, and compiled their answers into one article. Here are some of their thoughts on top issues in security today:

Who we talked to:
Gary Davis, chief consumer security evangelist at Intel Security Group. Previously known as McAfee Inc., Intel Security is a Santa Clara software security company.

Kevin Haley, director of Symantec Corp. security response. The Mountain View company handles security software and storage.

Pravin Kothari, founder and CEO of San Jose-based CipherCloud, a cloud security company.

Dave DeWalt, CEO of FireEye, a Milpitas startup with a malware protection system. It also does the forensics after breaches happen, including helping Sony Pictures Entertainment after its massive hack last year.

David Goeckeler, senior vice president of Cisco Security Group. He just celebrated his sixth anniversary in this role, but he’s been with Cisco for 15 years.

Top concerns

1. Breaches
Symantec’s Haley said the No. 1 issue in security for businesses is data breaches, how to prevent them and how to handle them when they happen. Most of these breaches are caused by attackers, he said.

“It was an IT (information technology) to CISO (chief information security officer) issue to a board issue,” he said. “Execs are getting fired, brands are being hurt, and revenue is being lost.”

FireEye’s DeWalt notes that this is a community problem.

“The problem isn’t headed in the right direction,” Haley said. “How do we get ahead of this set of problems and what are we going to do about it as a nation? The level of danger has elevated pretty dramatically year over year. What we feared could come true a year ago at RSA has largely come true.”

2. Risks with iOT devices
New Internet of Things devices, like thermostats and wearables, pose new security challenges. A 2014 Hewlett-Packard Company study found the top IoT devices averaged 25 vulnerabilities per product and 75 percent of IoT devices contain vulnerabilities.

“People are not spending time thinking about opening up Pandora’s box of security challenges,” said Intel’s Davis. “The challenge is, you see all of these devices coming online at a rapid clip, without robust security. … Trying to apply a patch to a thermostat in the home is going to be much more challenging.”

New research from the market research firm Park Associates shows 47 percent of households have privacy or security concerns about smart-home devices.

Devices often are made without consideration of security and should have security built into them, he said. Not requiring a complex password or not requiring changing a password are dangerous things.

3. Changing business models
A shift to the cloud and digitization in enterprise can increase risk for companies, said Cisco’s Goeckeler.

“As business models change, it makes the security job a lot more difficult,” he said.

4. Need for government support
DeWalt says companies need more support from the government when it comes to Internet safety.

“In many cases the government is the problem, too,” he said. “For example, Russia’s offensive activities in cyberspace. They (various governments) could also be a big part of the solutions.”

Hacktivism, cybercrime, espionage, cyberterrorism and cybersabotage have all grown over the past decade, DeWalt said.

5. Thoughts on Patriot Act
The Patriot Act is not working well for international customers, said CipherCloud’s Kothari.

“We are always in favor of data privacy and consumer rights,” he said. “Right now, the Patriot law is too deep into security. It’s the typical security-versus-privacy debate that started after 9/11 — and in the process, privacy has taken the backseat.”

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Please see email link to the April, 2014 Emerging Growth Debt, Part II: When It’s Heading South: Insolvency and Related Considerations – Maximizing Enterprise Value

webcast-emerging-companies

WEBCAST LINK: http://w.on24.com/r.htm?e=931038&s=1&k=B6B60768B021450AC7A583EBC7C9676F

The webcast is sponsored by Latham & Watkins and the panelists are:

Program
In this 60-minute webcast, Latham & Watkins partner Peter M. Gilhuly, Steven R. Gerbsman, Principal of Gerbsman Partners and Manuel A. Henriquez, Founder, Chairman and CEO of Hercules Technology will provide a brief overview of distressed venture deal issues and solutions.

These three leading experts will give an executive overview of what to do when a venture company is distressed.

Topics
· Maximizing Enterprise Value
· Fiduciary Duty Issues
· Working Out Venture Deals
· Resolution Without Insolvency Process
· Out of Court Shut Down of Operations vs. ABCs

Speakers
Peter M. Gilhuly, Partner, Latham & Watkins LLP
Steven R. Gerbsman, Principal, Gerbsman Partners
Manuel A. Henriquez, Founder, Chairman and CEO, Hercules Technology Growth Capital
Sponsor
Latham & Watkins LLP is a leading global law firm dedicated to working with clients to help them achieve their business goals and overcome legal challenges anywhere in the world. The firm has earned considerable market recognition based on a record of landmark matters and a unified culture of innovation and collaboration. From a global platform of offices covering the world’s major financial, business and regulatory centers, the firm’s lawyers help clients succeed. For more information, visit http://www.lw.com

 

Bubble fears just hit their highest level on record

More investors are worried about overvalued stocks and bonds than at any time in at least the past 12 years.

That’s the message from Bank of America Merrill Lynch’s latest survey of fund managers, which polls 145 participants managing a combined $494 billion (£337.4 billion) in assets on how they feel about a bunch of different investments.

Investors on the panel who think both stocks and bonds are overvalued outnumber those who don’t by 54%, the highest disparity since the series began in 2003. Concerns among the panel about a bubble specifically in stocks are at their highest level since records began in 2000.

Here’s how that looks:

stock bond bubble BAMLBAML

There are two other big moves in the BAML survey. More investors now think the dollar is overvalued than at any time since 2009:

dollar overvalued BAMLBAML

And they think the euro is more undervalued than at any time in the past 12 years:

euro undervalued BAMLBAML

The euro has fallen from just over $1.38 this time last year to below $1.06 — but these graphs suggest that plunge may be winding down.

21 things you didn’t know your iPhone could do

iphone 6 and 6 plusJustin Sullivan/Getty Images

We’re nearly attached to our iPhones — we use them all day everyday, but you may be surprised to learn there are still a handful of things it can do that you probably didn’t know about.

Some of these features are buried in the Settings menu while others are hidden in plain sight.

(Note: Some of these features may only be available in iOS 8 and higher)

JAMIE DIMON: ‘There will be another crisis’

jamie dimonReutersThe JPMorgan Chase CEO broke down the anatomy of a financial crisis.

In his annual letter to JPMorgan Chase shareholders, CEO Jamie Dimon has a clear warning:

Some things never change — there will be another crisis, and its impact will be felt by the financial markets.

Dimon adds that the trigger of the next financial crisis will not be the same as the most recent one, but no matter — another crisis will come.

And how it unravels will not be as unfamiliar as we might expect.

“While crises look different, the anatomy of how they play out does have common threads,” Dimon writes.

Here are the core behaviors investors exhibit when these crises break out, according to Dimon.

  • First, they sell the assets they believe are at the root of the problem.
  • Second, they generally look to put more of their money in havens, commonly selling riskier assets like credit and equities and buying safer assets by putting deposits in strong banks, buying Treasuries, or purchasing very safe money market funds.
  • Often at one point in a crisis, investors can sell only less risky assets if they need to raise cash because, virtually, there may be no market for the riskier ones.

And what’s more, no investor is truly safe in a crisis. Here’s Dimon:

These investors include individuals, corporations, mutual funds, pension plans, hedge funds — pretty much everyone — each individually doing the right thing for themselves but, collectively, creating the market disruption that we’ve witnessed before. This is the “run-on-the-market” phenomenon that you saw in the last crisis.

Dimon continues his discussion of what the next crisis could look like by breaking down how banks’ balance sheets had changed since the financial crisis.

Banks now hold 100% of liquid assets against potential cash outflows, and Dimon says no bank will want to be the first to admit that its liquidity coverage ratio has declined for fear of looking weak.

Dimon also says that investors will want to buy Treasuries because they are considered safe, but with Treasury supply declining, investors will have to find other places to put their capital.

Read Dimon’s full thoughts on the next crisis in his letter to shareholders here »