Free Essay

Legal Issues in Information Security

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Submitted By keb05
Words 437
Pages 2
1. Did CardSystems Solutions break any federal or state laws?

Yes, they deemed to be in violation of FTC ACT 15, U.S.C 41-58

2. In June 2004, an external auditor certified CardSystems Solutions as Payment Card Industry Data Security Standards-(PCI DSS) compliant. What is your assessment of the auditor’s findings?

I personally disagreed with the auditors findings. If CardSysytems Solutions per the report were indeed deemed compliant, proper IP firewalls and antivirus programs would have been active as PCI DSS requires a firewall and an up to date anti-virus which CardSystem Solutions did not.

3. Can CardSystems Solutions sue the auditor for not performing his or her tasks and deliverables with accuracy? Do you recommend that CardSystem Solutions pursue this avenue?

No. In 2004 they were PCI DSS compliant. At the time of the attack in June of 2005, they were not certified compliant.

4. Who do you think is negligent in this case study and why?

CardSystems Solutions have to be considered the negligent party in the case. CardSystems Solutions is a high profiled company that is expected to comply with the regulations and requirements for properly protecting and storing private and secure data.

5. Do the actions of CardSystems Solutions warrant an “unfair trade practice” designation as stated by the FTC?

Yes I believe it should

6. What security policies do you recommend to help with monitoring, enforcing, and ensuring PCI DSS compliance?

SNMP along with MAC filtering.

7. What security controls and security countermeasures do you recommend for CardSystems Solutions to be in compliance with PCI DSS requirement?

Answer: up to date anti-virus, firewall, encryption, IDS/IPS, input validation.

8. What was the end result of the attack and security breach to CardSystems Solutions and its valuation?
Answer: customers personal identifiable information was stolen and the company was taken over in the end.

9. What are the possible consequences associated with the data loss? tarnished reputation, fines, loss of business.

10. Who do you think is ultimately responsible for CardSystems Solutions’ lack of PCI DSS compliance?

The parties ultimately held responsible would be the IT department as we as management.

11. What should CardSystem have done to mitigate possible SQL injections and data breaches on their credit card transaction-processing engine?

They should have properly inputted validations and made sure any and all back doors to the application was closed.

12. True or False: Although CardSystems Solutions had proper security controls and security countermeasures, it was not 100% PCI DSS-compliant because the company failed to properly implement ongoing and testing on its development and production systems.

True

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