Target breach puts corporate tech execs under fire

Published on NewsOK Modified: March 6, 2014 at 6:11 pm •  Published: March 6, 2014
Advertisement
;

NEW YORK (AP) — Hackers are putting top technology executives under severe pressure. And this week's sudden departure of Target's chief information officer in the wake of the company's massive pre-Christmas data breach has only ratcheted up the stress.

Years ago, the job of a CIO focused mainly on the upkeep of computer systems. In their largely behind-the-scenes roles, most of their major decisions centered on the kinds of technological innovations a company would adopt, when and how much to pay for systems upgrades and the creation and maintenance of company websites.

But the rise of computer crime in recent years changed the job description. At the same time, the surging use of personal smartphones and tablets in business settings has given CIOs even more technology to manage, along with countless new points of entry for hackers to breach their systems.

As a result, CIOs have their hands full and a much more high-profile role than ever before.

Target Corp.'s breach sent shockwaves through the profession. And CIOs from companies in all walks of business —from retail to banking and drug discovery— are using the breach as a rallying point to call attention to their struggle and garner additional funds and manpower to fight digital threats.

Cyberattacks were on the rise long before Target's news that hackers had stolen 40 million debit and credit card numbers, along with the personal information belonging to as many as 70,000 people. A 2013 Hewlett-Packard Co.-sponsored study by the Ponemon Institute found that the average annual cost of cybercrime incurred by a benchmark sample of U.S. organizations was $11.6 million per organization, a 26 percent increase from the previous year.

For a host of companies, the Target breach was a pivotal event that permanently altered the way they approach data security. Many CIOs say they're receiving more support, but they say the trade-off is that they're facing increased scrutiny from their CEOs and other executives. If their fortress walls fall to hackers, their jobs will be on the line.

Ken Grady, CIO of life sciences company New England BioLabs Inc., says the increased attention to data security has been a good thing for him. It has prompted much needed support from colleagues. But that backing comes at a cost.

"If I have a breach in spite of all that, I need to be able to say that we did everything we could to prevent it," Grady says. "If I can't do that, then it would have a negative effect on me."

Analysts believe the Target data theft couldn't have had a positive effect on Beth Jacob, who had served as the company's CIO since 2008. Target said Wednesday that Jacob's resignation was her decision, but analysts say Jacob took the fall amid a slew of bad publicity for the Minneapolis-based company.

Target is in the midst of overhauling its information and compliance division and plans to look outside the company for a chief information security officer and a chief compliance officer, two newly created positions. Before the overhaul, information security functions were split among a variety of executives.

Tim Scannell, director of strategic content for the CIO Executive Council, a professional trade group, says companies have come to realize the importance of security. The result: boosted budgets and staffing increases. According to a recent CIO Executive Council survey, computer security professionals say they expect an average increase of 8 percent in their budgets this year.

"I think CIOs are getting more respect," Scannell says. "They're winning a seat at the table. But along with that, we have a heightened security risk, so they're under pressure to do something about it."

Scannell notes that even if a company isn't a retailer that deals directly with consumers, most now have some kind of e-commerce operations, which makes them a potential target for an attack.



Trending Now


AROUND THE WEB

  1. 1
    Tulsa police believe mother, teen son planned deaths together
  2. 2
    Kevin Durant asks for your basketball videos in Summer is Serious 2
  3. 3
    Big 12 basketball: Time, TV listing announced for Sooners' December game against Washington
  4. 4
    Lawsuit: 'Duck Dynasty' stole 'camo' idea
  5. 5
    Here's What Gaza Explosions Look Like From Space
+ show more