Data, not hardware, is a company's most valuable asset

March/April 2000 Information Security

During the first week of March, the offices of no less than six leading legal firms in Johannesburg's northern suburbs were burgled.

Just another South African crime statistic, one may ask?

"No, almost certainly not," says Ian Melamed of Ian Melamed Secure Computing. "What made these burglaries significant was the fact that in each of the cases, the company computer file servers holding all the data files were stolen.

"Whenever we lose hardware, we automatically assume the person who is stealing it, is doing so for the hardware itself," Melamed says. "It is only when you start putting a series of thefts together, that it starts looking sinister."

Information theft

"The most probable motive behind these crimes is information theft", he says. "Information theft has already reared its head in several spectacular incidents in South Africa. Data stolen from a computer in Cape Town was used in a blackmail attempt against an AIDS sufferer," Melamed continues.

"The unfortunate victim had regular sums of money demanded from him in exchange for his employer not being informed of his condition. In other cases, the theft of information in respect of employee versus employer disputes has become a regular occurrence".

Although hardware theft is nothing new - either here or overseas - very often the theft of a workstation or smaller equipment goes unreported because the replacement value falls within the insurance excess of company.

"The theft of file servers is however, a different kettle of fish," Melamed says. "File servers and networks which are stolen usually exceed an insurance excess by thousands and thus they are reported. Too often the emphasis is placed on the value of the hardware being stolen and not upon the data that might be found - and used - on the system.

"The question arises, if lawyers' offices are being targeted, then who is next on the list? Accountants? Medical surgeries? The recent thefts seem to indicate the criminal activity of information theft which is already prevalent in foreign countries, has now spread its tentacles into South African society as well," says Melamed.

Information is a resource like money, labour and materials. Unfortunately, this is often realised only after the loss has occurred and the value of data is hard to assess because on the face of it, it is not perceived to be a tangible physical asset.

"It can be compared to buying a R2000 safe and then putting a R2 million necklace into it for safekeeping," Melamed says. "The loss of data, quite apart from the disruptive effect on normal operations, can cause severe embarrassment and provide opportunities for extortion. If equipment is stolen, it is the duty of the system owner to ensure that no clients are exposed to any sort of danger as a result."

Quite apart from the very real danger of sensitive information falling into the wrong hands, there is also a possibility that an aggrieved party might hold the theft victim responsible in a civil claim for any damages caused.

For two reasons then, data can be a company's Achilles Heel if it is not protected properly.

So how can a company protect itself and its clients?

"All companies holding potentially sensitive data should - for their own and their clients' sake - ensure that data is protected through either direct encryption; physical disk disablement; back-up systems; or anti-virus protection," says Melamed.

"Direct encryption means the use of an internal facility which encrypts individual documents as they are created," he says. "Physical disk disablement works much like a time delay lock on the safe at a bank. The disk can only be accessed during normal office hours and even if the disk is physically stolen, it will be useless without the access code.

"A suitable back-up system will ensure that encrypted data which is on a stolen disk, can be recovered, while anti-virus protection will ensure that the system not fall prey to digital burglary through unauthorised backdoor e-mailing of data," Melamed says.

For details contact Ian Melamed, MD of Ian Melamed Secure Computing on cell: 082 444 3661 or e-mail: [email protected]





Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Want effective Attack Surface Management? Think like an attacker.
Information Security
Effective ASM requires companies to think like attackers, anticipate risks, and act decisively to reduce exposure by knowing their environment, deploying a structured approach, leveraging capable tools, and addressing both internal and external risks.

Read more...
The growing role of hybrid backup
Infrastructure Information Security
As Africa’s digital economy rapidly grows, businesses across the continent are facing the challenge of securing data in an environment characterised by evolving cyberthreats, unreliable connectivity and diverse regulatory frameworks.

Read more...
POPIA non-compliance puts municipalities at risk
Information Security Government and Parastatal (Industry)
Digital responsibility must go beyond POPIA compliance to recognising that privacy and service delivery are fundamentally linked. Despite this, only 51 out of 257 municipalities submitted their mandatory data protection and access to information reports in 2024.

Read more...
Choicejacking bypasses smartphone charging security
News & Events Information Security
Choicejacking is a new cyberthreat that bypasses smartphone charging security defences to confirm, without the victim’s input or consent, that the victim wishes to connect in data-transfer mode.

Read more...
Most wanted malware
News & Events Information Security
Check Point Software Technologies unveiled its Global Threat Index for June 2025, highlighting a surge in new and evolving threats. Eight African countries are among the most targeted as malware leaders AsyncRAT and FakeUpdates expand.

Read more...
Welcome to the new cyber battleground
Information Security
The Iran-Israel conflict is rapidly redefining modern warfare, pushing the boundaries of cyber capabilities and creating a new, borderless digital battlefield. Fortinet’s CISO, Dr Carl Windsor, offers a critical, in-depth analysis of the escalating tactics and global implications in his latest report.

Read more...
African industries may overestimate cyber defences
Information Security
] A significant perception gap exists in security awareness training: 68% of leaders believe training is tailored to roles, yet only a third of employees feel adequately trained. Many organisations only conduct annual or biannual generic training that may not effectively change behaviour.

Read more...
SMARTpod talks to Sophos and Phishield
SMART Security Solutions Technews Publishing Sophos Videos Information Security News & Events
SMARTpod recently spoke with Pieter Nel, Sales Director for SADC at Sophos, and Sarel Lamprecht, MD at Phishield, about ransomware and their new cyber insurance partnership.

Read more...
Cybersecurity and insurance partnership for sub-Saharan Africa
Sophos News & Events Information Security Security Services & Risk Management
Sophos and Phishield Announce first-of-its-kind cybersecurity and insurance partnership for sub-Saharan Africa. The SMARTpod podcast, discussing the deal and the state of ransomware in South Africa and globally, is now also available.

Read more...
Highest increase in global cyberattacks in two years
Information Security News & Events
Check Point Global Research released new data on Q2 2024 cyber-attack trends, noting a 30% global increase in Q2 2024, with Africa experiencing the highest average weekly per organisation.

Read more...










While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd. | All Rights Reserved.