Encryption: What Advisors Need to Know

Encrypt sensitive information, planners are routinely warned by security experts. Many states even require it. But theres also confusion out there among advisors about the nuts and bolts of encryption.

Planners would love to get specific guidance, says advisor and technology consultant Bill Winterberg, but he suspects that many are frustrated. As a result, he says, I would boldly guess that the majority of advisors are not using encryption properly.

ENCRYPTION BASICS

Encryption, which is basically taking easily readable information and making it secure by making it unreadable, is a technically complex process, involving complicated algorithms. But the everyday use of encryption online is generally pretty simple, once you understand the options.

Winterberg points out that many computers, especially Apple, come equipped with encryption systems, and theres simple off-the-shelf encryption software that should be adequate for most planners, he says. When people use passwords to log on to a computer, access files or send emails, theyre generally already using encryption, though it can be difficult to know what information is encrypted and how. One way youll know that information is being sent in an encrypted form is when you see an s added to the familiar http in a web address to read https.

LEVELS OF ENCRYPTION

There are different types and levels of encryption. Encryption can be applied to an entire hard drive, and it can also be applied to specific files, providing multiple layers of defense. If a computer is lost or stolen, those additional layers can be helpful in protecting data.

Advisors should encrypt all backup files, regardless of the form they are in, says technology and compliance consultant E.J. Yerzak, who conducts security risk assessments for advisors and broker-dealers. Email can be encrypted manually or automatically many email programs have encryption options built in, and advisors can get plug-ins, but those options have to be enabled by both parties using the program to be secure, says Yerzak.

While advisors should encrypt their email, he says, email is still a notoriously insecure means of communication. For planners concerned about protecting information, encrypted portal websites for clients are an increasingly popular choice and Yerzak and Winterberg both approve of the trend.

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Encryption: What Advisors Need to Know

Is open source really a security concern?

Open Source

Open source code can inject dozens of threats into mobile and web applications, according to a new study by Veracode. But open source proponents say consider the source -- in both senses of the word.

The application security provider released an analysis of 5,000 enterprise applications uploaded to its platform that showed open source components could open up gaping security holes. Veracode gathered data over the last two months using its newly released software composition analysis service. The data, it said, showed that open source and third-party components introduce an average of 24 known vulnerabilities into each web application.

The common use of reusable, pre-fabricated software components from open source developers for IT systems, the company said, could leave large openings in security that increase the risk of data breaches, malware injections and denial-of-service attacks. It quoted other studies that said 95 percent of all IT organizations will leverage some open source element in mission-critical solutions by 2015, including critical infrastructure systems used by financial institutions.

"Most third-party and open source components do not undergo the same level of security scrutiny as custom-developed software," Veracode warned.

Open source advocates, however, said the scenario isn't nearly as scary as the company makes out.

Knowing where the vulnerabilities lie is a key part of securing them, said Josh King, chief technologist at New America Foundation's Open Technology Institute.

"If you want to be cynical about it," King said, Veracode's report could be seen as selling its own services. But more importantly, he stressed, is that the ability to find the security holes is actually a key benefit of open source.

King said open source software is centered on a group approach to finding and securing security flaws. The approach can be more effective than closed source development, as more eyes are on the code. King noted that vulnerabilities in single source code are knowable only to the maker, and only if that maker has vetted the code completely.

"While we can identify and report on the issues in software where the source code is publicly available," he said, "there are an unknown number of unidentified issues in closed source software that may remain unaddressed."

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Is open source really a security concern?

Daniele Micciancio – Lattice-based public-key cryptography – Video


Daniele Micciancio - Lattice-based public-key cryptography
Daniele Micciancio of the University of California, San Diego presented an invited talk on lattice-based public key cryptography at the 2014 PQCrypto summer school in October, 2014. PQCrypto...

By: Institute for Quantum Computing

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Daniele Micciancio - Lattice-based public-key cryptography - Video

The branding of Julian Assange

If you buy what someone stands for - intellectually, philosophically or culturally - does this mean you will also buy them literally? Their taste, their likeness? A whole chunk of modern consumer culture is built on betting that the answer is yes, from celebrity product lines to the growing businesses of YouTubers like Bethany Mota, who have become fashion ambassadors.

But what happens when you add politics and morality to the mix? Such are the questions raised by the creation of Wiki License, the commercial arm of WikiLeaks and Julian Assange, which is working with companies around the world to create a line of officially sanctioned "quality apparel and merchandise."

Not just T-shirts but possibly knits, leather jackets - even activewear. USB sticks! Briefcases! The sky's the limit!

In a world where individuals are increasingly encouraged to consider themselves a brand, it is a logical progression, if not an entirely comfortable one.

Indeed, the self-licensing of Assange is arguably the ultimate example of the phenomenon identified by Thomas Frank and Matt Weiland in 1997 compilation of essays from

The Baffler, "Commodify Your Dissent," though they were talking about the business world's co-option of the language of revolution, and Assange is using business to protect (and finance) his revolution, at least according to his representative.

Yet it still seems a somehow inappropriate idea (or so an ad hoc poll of branding experts, fashion folks and friends would suggest). After all, commercial branding is an essentially corporate, establishment idea, and Assange is the opposite.

There's no question that the monetisation of rebellion against the status quo has been going on for a long time; certainly since Fidel Castro helped popularise the concept by adopting a 1960 Alberto Korda photograph of Che Guevara as a symbol of his movement, which then migrated onto everything from T-shirts to bikinis.

It began earlier this year when Assange, the silver-haired WikiLeaks founder and current refugee in the Ecuadorean embassy in London, was approached by a licensing agent in Iceland called Just Licensing with the suggestion that he take control of and monetise his brand image. Olafur Vignir Sigurvinsson, WikiLeaks representative points out two developments. First, a high level of awareness, as revealed in 2011 by the market research firm Ipsos, which looked at perception of WikiLeaks in 24 countries and among 18,829 adults age 16 to 64. The survey showed approximately 80 percent name recognition and, in countries like India and Spain, a more than 80 per cent positive association with it. (Not surprisingly, its lowest rating came from the United States.) And second, the appearance of a host of non-official Wiki/Assange merchandise.

There is only one official e-commerce site (wikileaks.spreadshirt.com), which sells T-shirts, polos and sweats, as well as a messenger bag for $75, so far.

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The branding of Julian Assange