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New data rules raise business trust challenges

When the General Data Protection Regulation comes into effect on May 25th, financial services firms will face a new potential threat to their on-going challenges with building strong customer relationships, writes DARREL ORSMOND, Financial Services Industry Head at SAP Africa.

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The regulation – dubbed GDPR for short – is aimed at giving European citizens control back over their personal data. Any firm that creates, stores, manages or transfers personal information of an EU citizen can be held liable under the new regulation. Non-compliance is not an option: the fines are steep, with a maximum penalty of €20-million – or nearly R300-million – for transgressors.

GDPR marks a step toward improved individual rights over large corporates and states that prevents the latter from using and abusing personal information at their discretion. Considering the prevailing trust deficit – one global EY survey found that 60% of global consumers worry about hacking of bank accounts or bank cards, and 58% worry about the amount of personal and private data organisations have about them – the new regulation comes at an opportune time. But it is almost certain to cause disruption to normal business practices when implemented, and therein lies both a threat and an opportunity.

The fundamentals of trust

GDPR is set to tamper with two fundamental factors that can have a detrimental effect on the implicit trust between financial services providers and their customers: firstly, customers will suddenly be challenged to validate that what they thought companies were already doing – storing and managing their personal data in a manner that is respectful of their privacy – is actually happening. Secondly, the outbreak of stories relating to companies mistreating customer data or exposing customers due to security breaches will increase the chances that customers now seek tangible reassurance from their providers that their data is stored correctly.

The recent news of Facebook’s indiscriminate sharing of 50 million of its members’ personal data to an outside firm has not only led to public outcry but could cost the company $2-trillion in fines should the Federal Trade Commission choose to pursue the matter to its fullest extent. The matter of trust also extends beyond personal data: in EY’s 2016 Global Consumer Banking Survey, less than a third of respondents had complete trust that their banks were being transparent about fees and charges.

This is forcing companies to reconsider their role in building and maintaining trust with its customers. In any customer relationship, much is done based on implicit trust. A personal banking customer will enjoy a measure of familiarity that often provides them with some latitude – for example when applying for access to a new service or an overdraft facility – that can save them a lot of time and energy. Under GDPR and South Africa’s POPI act, this process is drastically complicated: banks may now be obliged to obtain permission to share customer data between different business units (for example because they are part of different legal entities and have not expressly received permission). A customer may now allow banks to use their personal data in risk scoring models, but prevent them from determining whether they qualify for private banking services.

What used to happen naturally within standard banking processes may be suddenly constrained by regulation, directly affecting the bank’s relationship with its customers, as well as its ability to upsell to existing customers.

The risk of compliance

Are we moving to an overly bureaucratic world where even the simplest action is subject to a string of onerous processes? Compliance officers are already embedded within every function in a typical financial services institution, as well as at management level. Often the reporting of risk processes sits outside formal line functions and end up going straight to the board. This can have a stifling effect on innovation, with potentially negative consequences for customer service.

A typical banking environment is already creaking under the weight of close to 100 acts, which makes it difficult to take the calculated risks needed to develop and launch innovative new banking products. Entire new industries could now emerge, focusing purely on the matter of compliance and associated litigation. GDPR already requires the services of Data Protection Officers, but the growing complexity of regulatory compliance could add a swathe of new job functions and disciplines. None of this points to the type of innovation that the modern titans of business are renowned for.

A three-step plan of action

So how must banks and other financial services firms respond? I would argue there are three main elements to successfully navigating the immediate impact of the new regulations:

Firstly, ensuring that the technologies you use to secure, manage and store personal data is sufficiently robust. Modern financial services providers have a wealth of customer data at their disposal, including unstructured data from non-traditional sources such as social media. The tools they use to process and safeguard this data needs to be able to withstand the threats posed by potential data breaches and malicious attacks.

Secondly, rethinking the core organisational processes governing their interactions with customers. This includes the internal measures for setting terms and conditions, how customers are informed of their intention to use their data, and how risk is assessed. A customer applying for medical insurance will disclose deeply personal information about themselves to the insurance provider: it is imperative the insurer provides reassurance that the customer’s data will be treated respectfully and with discretion and with their express permission.

Thirdly, financial services firms need to define a core set of principles for how they treat customers and what constitutes fair treatment. This should be an extension of a broader organisational focus on treating customers fairly, and can go some way to repairing the trust deficit between the financial services industry and the customers they serve.

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Lenovo unveils world’s smallest desktop PC

ThinkCentre M90n-1 Nano is powered by 8th generation Intel processors and SSD storage, catering to flexible working

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Lenovo has introduced the world’s smallest desktop PC, the ThinkCentre M90n-1 Nano, to the South African Market. It says it is designed to support diverse workplaces with the power of a full-size desktop and the space-saving convenience of a laptop.

“The ThinkCentre M90n-1 Nano is further proof of Lenovo’s commitment to helping small businesses drive efficiency in their operations,” says Thibault Dousson, General Manager at Lenovo South Africa. “In South Africa, SMEs make up a third of the country’s GDP and play an integral part in boosting the economy and creating jobs. Lack of capital, investment, resources or support are among the major challenges faced by our country’s entrepreneurs. 

“Lenovo wants to help entrepreneurs grow their businesses through giving them better access to critical tools and services, such as our financial services offering and leasing option. The ThinkCentre M90n-1 Nano is ideal for small business owners as it is reliable and powerful yet compact and easily transportable.”

Delivering powerful performance in an ultra-portable size, the ThinkCentre M90n-1 Nano is the most compact commercial desktop series in the world. Compact models are one-third the size of the ground-breaking ThinkCentre Tiny, at just 0.35L in volume.

With fully functional USB Type-C Gen2 and USB 3.1 Gen2 ports located on the front and back of the device, multiple displays, docks and other hardware options can further boost productivity. The ability to be powered using just one cable to a USB Type-C monitor makes the M90n-1 Nano ideal for a clutter-free workspace, whether it be placed behind a screen or under a desk.

The ThinkCentre M90n-1 Nano is MIL-810G SPEC tested – built to withstand extreme conditions including shocks, drops, dust and humidity. The desktop’s HW TPM 2.0 chip encrypts data to keep sensitive data secure, while its Kensington lock slot enables users to physically secure the device to an immovable object, protecting it from theft.

With its Modern Standby feature, users can receive emails, VoIP calls and instant messages while remaining in standby mode. When ready to commence work, the M90n-1 Nano resumes full functionality in under one second.

These features make the ThinkCentre M90n-1 Nano an easy fit across all office environments, or wherever space is limited, and staff are mobile. The ThinkCentre M90n-1 Nano also reduces energy consumption by as much as 30 percent annually over the ThinkCentre Tiny. 

Powered by the 8th generation Intel processors and backed by SSD (solid state drive) storage, the ThinkCentre M90n-1 Nano offers diverse connectivity and multi-user options to keep users connected.

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Hackers target hotels

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Kaspersky’s research of the RevengeHotels campaign aimed at the hospitality sector, has confirmed over 20 hotels in Latin America, Europe and Asia have fallen victim to targeted malware attacks. Even more hotels are potentially affected across the globe. Travelers’ credit card data, which is stored in a hotel administration system, including those received from online travel agencies (OTAs), is at risk of being stolen and sold to criminals worldwide.

RevengeHotels is a campaign that includes different groups using traditional Remote Access Trojans (RATs) to infect businesses in the hospitality sector. The campaign has been active since 2015 but has gone on to increase its presence in 2019. At least two groups, RevengeHotels and ProCC, were identified to be part of the campaign, however more cybercriminal groups are potentially involved.

The main attack vector in this campaign is emails with crafted malicious Word, Excel or PDF documents attached. Some of them exploit CVE-2017-0199, loading it using VBS and PowerShell scripts and then installing customised versions of various RATs and other custom malware, such as ProCC, on the victim’s machine that could later execute commands and set up remote access to the infected systems.

Each spear-phishing email was crafted with special attention to detail and usually impersonating real people from legitimate organisations making a fake booking request for a large group of people. It is worth noting that even careful users could be tricked to open and download attachments from such emails as they include an abundance of details (for instance, copies of legal documents and reasons for booking at the hotel) and looked convincing. The only detail that would reveal the attacker would be a typosquatting domain of the organisation.

phishing email sent to a hotel impersonating a booking request from an attorney’s office

Once infected, the computer could be accessed remotely not just by the cybercriminal group itself — evidence collected by Kaspersky researchers shows that remote access to hospitality desks and the data they contain is sold on criminal forums on a subscription basis. Malware collected data from hospitality desk clipboards, printer spoolers and captured screenshots (this function was triggered using specific words in English or Portuguese). Because hotel personnel often copied clients’ credit card data from OTA’s in order to charge them, that data could also be compromised.

Kaspersky telemetry confirmed targets in Argentina, Bolivia, Brazil, Chile, Costa Rica, France, Italy, Mexico, Portugal, Spain, Thailand and Turkey. However, based on data extracted from Bit.ly, a popular link shortening service used by the attackers to spread malicious links, Kaspersky researchers assume that users from many other countries have at least accessed the malicious link – suggesting that the number of countries with potential victims could be higher.

“As users grow wary of how protected their data truly is, cybercriminals turn to small businesses, which are often not very well protected from cyberattacks and possess a concentration of personal data. Hoteliers and other small businesses dealing with customer data need to be more cautious and apply professional security solutions to avoid data leaks that could potentially not only affect customers, but also damage hotel reputations as well,” comments Dmitry Bestuzhev, Head of Global Research and Analysis Team, LatAm.

To stay safe, travelers are recommended to:

  • Use a virtual payment card for reservations made via OTAs, as these cards normally expire after a single charge
  • When paying for a reservation or checking out at hotel desks, use a virtual wallet, such as Apple Pay or Google Pay, or a secondary credit card with a limited amount of debit available

Hotel owners and management are also advised to follow these steps to secure customer data:

  • Conduct risk assessments of the existing network and implement regulations regarding how customers data is handled
  • Use a reliable security solution with web protection and application control functionality, such as Kaspersky Endpoint Security for Business. Web protection helps to block access to phishing and malicious websites while application control (in white list mode) allows to make sure that no application except the white listed ones can run on hospitality desk computers.
  • Introduce staff security awareness training to teach employees how to spot spear-phishing attempts and show the importance of remaining vigilant when working with incoming emails.

Read the full report, RevengeHotels: cybercrime targeting hotel desks worldwide, on Securelist.

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