R. Kinney Williams - Yennik, Inc.
R. Kinney Williams
Yennik, Inc.

Internet Banking News
Brought to you by Yennik, Inc. the acknowledged leader in Internet auditing for financial institutions.

January 4, 2009

CONTENT Internet Compliance Information Systems Security
IT Security Question
 
Internet Privacy
 
Website for Penetration Testing
 
Does Your Financial Institution need an affordable Internet security audit?  Yennik, Inc. has clients in 42 states that rely on our penetration testing audits to ensure proper Internet security settings and to meet the independent diagnostic test requirements of FDIC, OCC, OTS, FRB, and NCUA, which provides compliance with Gramm-Leach Bliley Act 501(b) The penetration audit and Internet security testing is an affordable-sophisticated process than goes far beyond the simple scanning of ports.  The audit focuses on a hacker's perspective, which will help you identify real-world weaknesses.  For more information, give R. Kinney Williams a call today at 806-798-7119 or visit http://www.internetbankingaudits.com/.


FYI -
Several Attacks Behind CheckFree Data Breach - New attack combines several attack techniques into a single, multi-stage attack that is still being examined for a line of defense. The cybercriminals who breached the CheckFree bill paying service last week used a combination attack that may be almost impossible to stop. http://www.internetnews.com/security/article.php/3791341/Several+Attacks+Behind+CheckFree+Data+Breach.htm

FYI -
Implementing PCI-DSS: The top five issues to consider - PCI standard to include unattended POS - Talk to anyone who works for an organization that accepts, processes or even looks at a credit card, and the three letters PCI' strike a chord of fear that is rarely seen in the IT world. http://www.scmagazineus.com/Implementing-PCI-DSS-The-top-five-issues-to-consider/article/123280/?DCMP=EMC-SCUS_Newswire

FYI -
In cybersecurity, who is the weakest link? - The definition of human error is a mistake made by a person rather than being caused by a poorly designed process or the malfunctioning of a machine such as a computer.' A simple, often unintentional, lapse in judgement can have detrimental repercussions and it's no surprise that an organization's workforce is the weakest link. http://www.scmagazineus.com/In-cybersecurity-who-is-the-weakest-link/article/123207/?DCMP=EMC-SCUS_Newswire

ATTACKS, INTRUSIONS, DATA THEFT & LOSS

FYI -
American Express web bug exposes card holders - A glaring vulnerability on the American Express website has unnecessarily put visitors at risk for more than two weeks and violates industry regulations governing credit card companies, a security researcher says. http://www.theregister.co.uk/2008/12/16/american_express_website_bug/

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WEB SITE COMPLIANCE -
Electronic Fund Transfer Act, Regulation E  (Part 2 of 2)

The Federal Reserve Board Official Staff Commentary (OSC) also clarifies that terminal receipts are unnecessary for transfers initiated on-line. Specifically, OSC regulations provides that, because the term "electronic terminal" excludes a telephone operated by a consumer, financial institutions need not provide a terminal receipt when a consumer initiates a transfer by a means analogous in function to a telephone, such as by a personal computer or a facsimile machine.

Additionally, the regulations clarifies that a written authorization for preauthorized transfers from a consumer's account includes an electronic authorization that is not signed, but similarly authenticated by the consumer, such as through the use of a security code. According to the OSC, an example of a consumer's authorization that is not in the form of a signed writing but is, instead, "similarly authenticated" is a consumer's authorization via a home banking system. To satisfy the regulatory requirements, the institution must have some means to identify the consumer (such as a security code) and make a paper copy of the authorization available (automatically or upon request). The text of the electronic authorization must be displayed on a computer screen or other visual display that enables the consumer to read the communication from the institution.

Only the consumer may authorize the transfer and not, for example, a third-party merchant on behalf of the consumer.

Pursuant to the regulations, timing in reporting an unauthorized transaction, loss, or theft of an access device determines a consumer's liability. A financial institution may receive correspondence through an electronic medium concerning an unauthorized transaction, loss, or theft of an access device. Therefore, the institution should ensure that controls are in place to review these notifications and also to ensure that an investigation is initiated as required. 


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INFORMATION TECHNOLOGY SECURITY
- We continue our series on the FFIEC interagency Information Security Booklet.  


SECURITY CONTROLS - IMPLEMENTATION - PHYSICAL SECURITY


The confidentiality, integrity, and availability of information can be impaired through physical access and damage or destruction to physical components. Conceptually, those physical security risks are mitigated through zone-oriented implementations. Zones are physical areas with differing physical security requirements. The security requirements of each zone are a function of the sensitivity of the data contained or accessible through the zone and the information technology components in the zone. For instance, data centers may be in the highest security zone, and branches may be in a much lower security zone. Different security zones can exist within the same structure. Routers and servers in a branch, for instance, may be protected to a greater degree than customer service terminals. Computers and telecommunications equipment within an operations center will have a higher security zone than I/O operations, with the media used in those equipment stored at yet a higher zone.

The requirements for each zone should be determined through the risk assessment. The risk assessment should include, but is not limited to, the following threats:

! Aircraft crashes
! Chemical effects
! Dust
! Electrical supply interference
! Electromagnetic radiation
! Explosives
! Fire
! Smoke
! Theft/Destruction
! Vibration/Earthquake
! Water
! Wireless emissions
! Any other threats applicable based on the entity's unique geographical location, building configuration, neighboring entities, etc.


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IT SECURITY QUESTION:

D. USER EQUIPMENT SECURITY (E.G. WORKSTATION, LAPTOP, HANDHELD)

5. Determine whether adequate policies and procedures govern the destruction of sensitive data on machines that are taken out of service, and that those policies and procedures are consistently followed by appropriately trained personnel.

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INTERNET PRIVACY
- We continue our series listing the regulatory-privacy examination questions.  When you answer the question each week, you will help ensure compliance with the privacy regulations.

Examination Objectives 

1. To assess the quality of a financial institution's compliance management policies and procedures for implementing the privacy regulation, specifically ensuring consistency between what the financial institution tells consumers in its notices about its policies and practices and what it actually does.

2. To determine the reliance that can be placed on a financial institution's internal controls and procedures for monitoring the institution's compliance with the privacy regulation.

3. To determine a financial institution's compliance with the privacy regulation, specifically in meeting the following requirements:

a)  Providing to customers notices of its privacy policies and practices that are timely, accurate, clear and conspicuous, and delivered so that each customer can reasonably be expected to receive actual notice; 
b)  Disclosing nonpublic personal information to nonaffiliated third parties, other than under an exception, after first meeting the applicable requirements for giving consumers notice and the right to opt out; 
c)  Appropriately honoring consumer opt out directions; 
d)  Lawfully using or disclosing nonpublic personal information received from a nonaffiliated financial institution; and
e)  Disclosing account numbers only according to the limits in the regulations.

4. To initiate effective corrective actions when violations of law are identified, or when policies or internal controls are deficient.

 

PLEASE NOTE:  Some of the above links may have expired, especially those from news organizations.  We may have a copy of the article, so please e-mail us at examiner@yennik.com if we can be of assistance.  

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Yennik, Inc.

4409 101st Street
Lubbock, Texas 79424
Office 806-798-7119
Examiner@yennik.com

 

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