Each new data breach casts doubt on whether personal data can ever truly be kept private. Despite increased efforts to improve security and prevent hacking, major sites continue to become the targets of global hackers. What do these breaches teach businesses and users about modern cybersecurity, and what can be done to minimize future risks?

What can we learn from data breach incidents? Lessons learned from data breach cases.

Millions of Users Compromised on Instagram

In March 2019, Facebook announced in a blog post that tens of thousands of Instagram users’ passwords had been “accidentally” stored in a format readable by third parties, although the social site claimed none of the passwords were “internally abused or improperly accessed.” By April, the number of affected users had increased to the millions, suggesting the breach was much more extensive than was first believed.

All affected users should have been notified by Facebook, but despite the apparent lack of malicious activity, the full impact of any vulnerability may not always be known. With no indication of who might have had access to the passwords or how the data might be exploited, it’s possible information associated with the accounts could have been compromised.

Instagram was in the spotlight again about a month later when information on 49 million users, including celebrities and popular influencers, was discovered in a database belonging to Chtrbox, an influencer marketing site. Information was reported to include profile pictures, likes, shares, follower counts, locations, phone numbers and email addresses.

Chtrbox claimed only 350,000 records were in the database, all compiled from publicly available information and not Instagram itself. If any of the data did actually come from Instagram, it’s possible a flaw in the website, which may have existed since October of prior year, could be to blame. The database was “inadvertently left unsecured for approximately 72 hours” before being fixed. 

Canva Design Tool Attacked and Breached

Other sites are equally vulnerable even when they don’t contain the same level of personal data found on social media platforms. A breach of the Australian design tool Canva highlights this unsettling reality. Canva allows users to create custom images for social media posts and profiles, email marketing, blogs and print advertising and was recently breached by an opportunistic hacker going by the name “GnosticPlayers.”

The hacker claimed to have stolen data on 932 million users from 44 sites across the web, including Canva which closed its database server after detecting the breach in mid-May 2019, but it was too late to prevent 139 million records from being compromised. Seventy-eight million of the affected users sign into Canva through Google accounts, which could put additional information outside of the design platform at risk.

Canva assures its users no login credentials were compromised because all passwords for the site and third-party login options are encrypted and impossible to decode. However, it continued to advise users to change passwords for Canva accounts as a precaution. 

How Should Users Respond?

The smartest thing for individuals to do after a data breach is to change passwords for the affected sites and any sites where the same email address and password combination are used. Those signing in through a third party, such as Google, may also want to consider updating those passwords, as well. Even though affected users receive notification from companies that experience a data breach, a password reset is always a good precautionary measure following data compromise.

Creating stronger passwords, eliminating duplicates and managing password information more carefully reduces the risk of multiple accounts being compromised. Adopting the highest security settings and adding firewalls, anti-spyware and anti-malware programs to all devices can provide another layer of protection during daily work and web browsing. 

How Should Businesses Respond?

Companies handling any kind of personal information need to implement more sophisticated security measures and take advantage of solutions incorporating artificial intelligence and machine learning to monitor network use and detect anomalies suggestive of possible malicious activity. Early detection is key in preventing extensive breaches, and technology is continuously being updated to handle new threats.

IT professionals trained in disciplines relevant to breach prevention can help business owners develop and deploy improved cybersecurity plans and educate both employees and customers in better password management practices. Some companies are dealing with increased threat risks by phasing out passwords completely and introducing more secure login options.

It’s unlikely breaches will ever stop completely, but businesses and users are responsible for taking proactive steps to reduce risks as much as possible. For IT professionals, massive breaches like those affecting Instagram and Canva highlight the growing need businesses have for better access control and cybersecurity protocols. Individuals with knowledge and experience in identity risk management and identity theft prevention can provide the guidance required to identify potential vulnerabilities and thwart hackers before millions of records are compromised.

Identity and access management certifications

For banks, credit unions and other financial institutions, verifying the identity of customers is of vital importance. Compliance regulations are becoming more complex, requiring more diligence and detail during onboarding and throughout the customer lifecycle. Among these regulations is the “know your customer” (KYC) process, which may directly affect how institutions handle identity management.

Know Your Customer information by Identity Management Institute

What is Know Your Customer (KYC)?

When a customer wants to do business with a financial institution, it’s up to the institution to make sure the person is who he or she claims to be and the transactions being performed are legitimate. At its most basic, KYC means getting a better understanding of each customer’s identity prior to entering into any kind of relationship or agreement. The process prevents individuals on prohibited lists and those with whom doing business poses too great a risk from negatively impacting operations.

The KYC regulations began in 2001 as part of the Patriot Act and include two main requirements:

• Customer Identification Program (CIP), in which identifying information is gathered and analyzed 
• Customer Due Diligence (CDD), a predictive approach to fraud prevention requiring knowledge of customer behaviors to assign risk ratings and detect anomalies suggestive of fraud

Maintaining KYC compliance through these processes poses a challenge in light of the changing nature of identity and the growing volume of customer data in a connected age.

How Do KYC Rules Impact Identity Management?

In combination with other anti-money laundering (AML) regulations, KYC is meant to help minimize problems with fraud, money laundering and the siphoning of funds to terrorist groups. By identifying customers as legitimate or risky before giving them the green light, CIP and CDD should, in theory, reduce the number of fraudulent or illegal transactions and lessen the likelihood of identity theft.

However, implementing CIP and CDD can complicate the process of identity verification, making even simple transactions cumbersome and creating bottlenecks for both customers and institutions. Getting a more detailed understanding of identities requires customers to collect and present a greater number of documents, which financial institutions then must verify as genuine.

Due to the longer process, onboarding time has already jumped significantly since more institutions began complying with KYC. In 2016, it took 22 percent longer to onboard corporate clients, and the process slowed down another 18 percent the next year. This can have a serious impact on a bank’s ability to build its customer base and makes it nearly impossible for businesses to complete important financial tasks during the onboarding period. 

How Can Businesses Become KYC Compliant?

As with other regulations implemented to protect privacy, minimize fraud risk and combat identity theft, failure to comply with KYC can carry hefty fines. Between 2008 and 2018, financial institutions in the U.S. alone had to shell out $23.52 billion as a result of noncompliance, representing a large percentage of the $26 billion global total.

What can businesses do to avoid penalties?

Cybersecurity experts, particularly those versed in identity theft prevention, can help clarify the confusion surrounding identity management protocols, and KYC analysts are available to lessen the burden associated with identity verification and policy implementation. With the help of these professionals, businesses are better equipped to maintain compliance through:

• Smarter, more thorough customer onboarding procedures
• Ongoing monitoring using automated tools and artificial intelligence
• Identification of unusual behaviors indicative of fraud

These processes make it easier to identify high-risk customers and flag possible cases of identity theft before significant damage is done or compliance is threatened.

The Best Approach for Compliant Identity Management

With 16.7 million victims of identity fraud in 2017 and $16.8 billion stolen as a result, financial institutions can’t afford to ignore KYC. Compliance can be considered part of what’s now known as customer identity and access management (CIAM), the next step in the evolution of modern identity management protocols. CIAM adds another layer to traditional IAM to help businesses address the complications of an increasing number of identities, platforms, devices and touchpoints.

Minimizing the risk of fraud and identity theft in financial transactions requires continuous identity checks and verification during the course of the customer lifecycle, for which businesses can invest in seamless digital verification solutions. These solutions are compatible across platforms and can be scaled to handle global transactions. This aids in streamlining an otherwise cumbersome process and may help offset the average annual KYC compliance cost of $48 million.

For IT professionals, staying on top of KYC regulations is necessary to help financial institutions and businesses deal with the challenges of identity management in the modern era. Businesses need help staying compliant, and compliance requires a strategic approach to verifying and protecting customers’ identities. Certification in identity theft and fraud prevention can help IT professionals bring knowledge and expertise to businesses seeking guidance with KYC compliance.

Identity and access management certifications

Consumers are a high-risk group when it comes to identity theft. According to the 2018 Identity Fraud Study by Javelin Strategy and Research, 6.64 percent of all consumers, or 1 in 15 people, were victims of identity fraud in 2017. Account takeovers jumped 61 percent between 2015 and 2017, and those with social media profiles were 30 percent more likely experience account compromise.

This spike in malicious activity presents a serious concern for business owners trying to protect their customers’ data and identities. With a new case of identity theft occurring every 2 seconds, it’s essential to employ professionals possessing the knowledge and experience to minimize consumer risk and ensure safer network environments.

How Can CIPA Certification Help?

The Certified Identity Protection Advisor (CIPA) designation is for “professionals who can educate, guide, and support consumers with their identity theft prevention, detection, investigation and resolution solutions.” As a registered trademark of the Identity Management Institute (IMI), this certification signifies a person has the skills to address the growing problem of identity theft among consumers and provide education to “lower fraud losses”associated with consumer information and identity compromise.

The benefits of becoming a CIPA aren’t limited to individuals working in IT. Anyone whose job or industry deals with situations in which identity theft is a serious potential problem can take advantage of CIPA training. This includes those providing healthcare, insurance, legal advice and financial or accounting services, as well as law enforcement officials. By offering “strong identity theft protection training,” CIPA certification prepares professionals in all these areas to address the unique challenges involved in dealing with consumer accounts and data protection.

Symantec reports an alarming 87 percent of customers have left personal information exposed when accessing accounts containing sensitive data, such as email, banking and financial services, indicating many are ignorant of rudimentary security measures. Since a single compromised account can lead to a devastating breach, businesses need help educating consumers in the basics of identity theft prevention. 

What Are the Benefits of Being a CIPA?

In the business world, there’s a growing need for professionals to help address the challenges associated with identity theft. Business owners don’t have the time or resources to teach customers how to avoid every possible action known to leave personal accounts vulnerable to attack.

A CIPA designation gives professionals the ability to aid in minimizing threat risks to consumers and the companies with which they do business. This offers a “competitive edge” in the cybersecurity market and makes CIPAs more desirable as potential hires, specially when combined with other identity and access management certifications. High-risk organizations in particular require the guidance a CIPA can offer when seeking to reduce the overall likelihood of a breach.

Because CIPA training and certification provides a detailed understanding of identity theft risks and protection solutions, professionals with this designation are able to:

• Share and follow best practices for avoiding identity theft
• Develop and implement identity theft risk management plans
• Set up and maintain tools to detect potential fraud
• Direct customers in their rights and business in their obligations regarding data protection and breach prevention
• Help consumers investigate and resolve identity theft cases in a timely manner

Potential employers see certification as confirmation of a professional’s skills in these areas and recognize the benefit of hiring a CIPA over someone without specialized training.

How to Get a CIPA Certification

The Identity Protection Advisor certification is only offered through the IMI and requires membership to apply. Professionals wishing to go through the training and take the exam must sign up using the CIPA application on the IMI website.

Once an application is pre-approved, candidates must pay a certification fee, plus any applicable membership fees. The certification fee includes a study guide and the cost of the exam itself. A short CIPA video training is also available for an additional fee. Candidates have one year from the time payment is received to study for and pass the exam with a score of at least 70 percent. CIPA candidates can also order the Credit Report Review and Error Correction Guide video training.

There are 10 “Critical Risk Domains” (CRDs) covered in the training and certification process, including fraud detection, theft and fraud prevention, risk management, relationship management, awareness and investigation and resolution. Knowledge from each domain is required to both pass the exam and provide essential identity theft prevention services to businesses and their customers. 

Professionals who qualify for certification with a passing grade are required to remain IMI members and pursue continuing education opportunities to maintain the designation. These include:

• Reading relevant books
• Writing articles, books or training materials
• Attending or teaching training courses
• Attending seminars and conferences

For more information on becoming a Certified Identity Protection Advisor, visit the IMI’s CIPA certification page. See details of the risk domains covered on the exam, take a practice test and explore other certifications for professionals seeking to expand their skills sets.