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Cyber Security Failures Threaten US Financial Collapse

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Monday, 11 Nov 2013 02:05 PM Current | Bio | Archive

Cyber security incidents have placed at risk government, private sector and personal information, according to a recent General Accountability Office (GAO) report.

Every company and government in the world is dependent on the Internet for its operations. Increasingly sophisticated and effective cyber attacking technology makes our financial markets' infrastructure and operations vulnerable.

The published articles and comments stating that the U.S. economy is at a tipping point are getting more numerous. That conclusion is becoming well-documented.

It won't take all that much to push the financial system over the edge.

Obamacare is proof that even when it comes to developing a computerized system from the ground up over a 3 ½ year period, the government can't provide even a modest amount of information security.

I am not questioning the wisdom or lack thereof of a national healthcare structure. What I am focusing on is the technical inability of the government to protect the information it gathers from its increasingly intrusive policies, programs, laws, rules and regulations.

Revelations that the National Security Agency has been spying on, well, everyone, sent — or should have sent — shivers through the financial industry and all investors.

The GAO reports that there has been a "dramatic" increase of reports of security incidents by hackers — private hackers and governments that use cyber attacks for a variety of reasons like theft, espionage or sabotage. Even our own government agencies are cyber hacking each other.

No place is safe.

The answer by Congress is, of course, more legislation.

The fact is that cyberspace was not designed to be governed. It was designed to be borderless, as proved by the fact that its evolution was guided and facilitated through the entrepreneurial genius of a loosely connected mix of national, private and non-profit forces.

The fact that there was no bureaucracy or politicians involved allowed the development of the computers, software and Internet connections to move the world out of the industrial age of the 20th century into the technology age of the 21st century.

Vast government programs like Obamacare or the Foreign Account Tax Compliance Act, which reject the idea of privacy, confidentiality and personal rights, have the consequence of making all your individual, investment and business information delivered up on a silver platter to private and government cyber thieves.

How can one trust any government to protect your financial security from cyber theft when it can't even secure its own information?

A recent published article noted that the research firm Standish Group found that over the last 10 years, 94 percent of the large federal technology projects were unsuccessful, half were delayed or over budget and more than 41 percent failed completely.

Government information technology failure is not unusual. It's the norm.
If you have not realized it before, then you should realize now that cyber security failures threaten the collapse of the U.S. financial markets.

Think of what that means to your financial security when you diversify your investments and allocate you assets.

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Kleinfeld
Cyber security incidents have placed at risk government, private sector and personal information, according to a recent General Accountability Office (GAO) report.
financial,cyber,security,information
495
2013-05-11
Monday, 11 Nov 2013 02:05 PM
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