With an increase in widespread data breaches in recent months by hacker groups such as LulzSec, companies have increased their spending on information technology security. LulzSec is an anonymous group of hackers that have claimed responsibility for hacking into several major company websites including Fox, Sony, AT&T, PBS, Citigroup and even the CIA. The group was able to shut down company websites and in some instances gain access to confidential information including customer identities and financial information. LulzSec has since ceased its targeted attacks. Some have speculated that law enforcement officials may have been close to identifying several of the hackers. While LulzSec may have disbanded for now, it is likely other hacker groups may arise. Security breaches are likely to continue in the future and cause severe damage to companies and their reputations if they do not take a proactive approach to maintaining data security.
Companies should take the necessary steps to safeguard proprietary and confidential information including employee or customer’s personal information. Companies may be held liable if they do not protect their sensitive information by having appropriate security measures in place. Employers would be wise to train their employees on information technology security issues and establish a policy to respond to a data breach in the event the company is hacked. Another prudent step would be to designate an information technology manager responsible for monitoring and enforcing the company’s data security
policy.




