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3 Tech Headlines You Missed Last Week (And How They Impact Your Liability)

3 Tech Headlines You Missed Last Week (And How They Impact Your Liability)

Monday, April 25, 2016/Categories: business-liability-insurance

Between all the time you spend putting out clients' fires, managing your company, and looking for new business, you may have missed some of the news that happened in the world of IT last week. And there were three big headlines:

  1. A billion-dollar lawsuit between two healthcare IT companies.
  2. A new method for flagging cyber attacks that catches 85 percent of threats.
  3. A tech company that announced 12,000 employees would be laid off.

Here’s what happened.

Software Liability Lawsuit Ends with $1 Billion Verdict

In big healthcare IT news, Epic Systems won a lawsuit against India-based Tata Consultancy Services. According to the Milwaukee Journal Sentinel, the lawsuit will cost Tata Consultancy Services nearly $1 billion dollars.

The report states Epic Systems accused Tata Consulting Services of illegally downloading over 6,000 proprietary documents with information on Epic and its services.

What’s fascinating about this situation is that Tata allegedly stole data from Epic even though it didn’t have a direct relationship with the company. Tata Consulting Services had been working on contract with Kaiser Permanente when the incident occurred. It was allegedly able to access Epic’s proprietary information through a portal Epic had on Kaiser Permanente’s network.

It’s a stark reminder: third-party vendors can pose a serious risk.

IT companies need to make sure any third parties that have access to their data follow established guidelines. See our blog post “1 in 3 Companies Welcoming Big E&O Exposures with Third-Party Vendors” for more info on managing this risk.

MIT Researchers Use AI to Detect 85 percent of Cyber Attacks

PCWorld reports that MIT has an ingenious approach to cyber security: use AI to detect cyber attacks, then let trained professionals comb through the data to rule out false positives. MIT claims this new approach can detect 85 percent of attacks, so let’s look at how it works.

Most data security professionals will tell you security software flags too many events, and security analysists simply don’t have enough time to go through each one.

As we covered in “When a Client’s Data Breach Is Good News” all the way back in 2013, Target’s security software actually flagged the malware that caused its costly data breach. Unfortunately, the company’s IT department got too many “red flags” from its FireEye software to actually investigate each one. The malware went unchecked and 40 million customers’ data was stolen.

MIT’s solution is to use AI to flag the 200 strangest results and have a trained human eye review them. That way, security professionals can analyze and catch the real threats before they lead to breaches.

Intel Sheds Jobs, Focuses More on IoT

In a move that provides a snapshot of the future of tech, Intel is reducing its workforce by 12,000 jobs in order to focus on enterprise infrastructure solutions like its data center and Internet-of-things offerings. ZDNet reports that the company has emailed its employees about this decision (layoffs will begin in the next 60 days and continue for the next year).

It’s a brutal reminder that when tech changes, you need to change with it. That’s especially true for small tech businesses.

IT professionals need to actively add new skills to their resume, stay relevant, and keep ahead of industry-wide trends. Check out “3 Professional Development Tips that Can Land Your Tech Business More Clients” for insight from three IT professionals who jumped from one area of tech to a more lucrative one.

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