Your Personal Titanic Moment

On a recent interview about the Titan sub catastrophe, director of the movie Titanic James Cameron, who has made 33 successful dives to the Titanic wreckage site, pointed out that this tragedy is eerily similar to the 1912 Titanic disaster: the captain of the 1912 RMS Titanic was repeatedly warned about ice ahead of his ship, yet he plowed ahead at full speed into an ice field on a moonless night, resulting in the deaths of over 1,500 innocent souls.


The captain of the sub Titan and CEO of the company OceanGate, Stockton Rush, was also repeatedly warned about his vessel’s safety, lack of certification for the vessel’s integrity, lack of a tracking device (think airplane black box), their experimental approach to deep dives (despite the fact that this is a very mature and well-understood practice) and lack of a backup sub. He also proceeded to plow ahead at full speed, taking people in an extremely unsafe vehicle, also killing innocent people. If there was ever a case for willful negligence, this is it.


When it comes to IT security and compliance for small business, this kind of willful negligence is rampant. Sometimes it ends with an abrupt, catastrophic “implosion,” as with the Titan, where a company is destroyed by a ransomware attack, operations shut down, unable to transact, employees and clients harmed and their reputation tarnished.


In other cases, the risk is there but hasn’t been addressed because nothing bad has happened – yet. Willful negligence in IT security and regulatory compliance to data privacy and protection comes in three forms.


The first is willful ignorance. Some people running a business are young and inexperienced, too new to the business world to understand the risks they are incurring by failing to protect their clients and themselves. Often, they are being advised by the wrong people – an IT firm that knows how to make their tech work but lacks the expertise to implement good security protections. You kind of can’t blame them for getting it wrong initially, but at some point they’ll get smacked with a cyber-attack and learn the error of their ways the hard way.


The second type of willful negligence is willfully stupid.


This group CANNOT claim “ignorance” as their defense. They KNOW they should be protecting their business and their clients’ data from cyber-attacks. They’ve heard the stories, they know the laws and may have been warned by their IT company or person, but foolishly believe “that can’t happen to us,” or choose to assume they’re “fine” because they are using a cloud application that promises compliance (which is correct for THEM, not necessarily for YOU). They trust but don’t verify that their IT person or company is actually doing what they’re supposed to, and often lack cyber liability insurance, choosing to take the risk because they’re cheap or can’t be bothered.


The third type of willful negligence is, in my opinion, the TRUE meaning of willful negligence and the most immoral and unforgivable. Determined negligence. These people stubbornly insist on continuing to operate without proper security protocols in place, without a disaster recovery plan, without any insurance, without assessing and inspecting their environment, refusing to acknowledge ALL facts, history and evidence to the contrary. They know they are acting irresponsibly but don’t care.


After the tragedy of the sub, multiple experts came forward to point out all the risky behaviors Rush was allowing. The hull had not gone through any type of cyclical pressure testing or thermal expansion and contraction testing. The hatch could only be opened from the outside and not the inside, which wouldn’t allow them to escape if needed in the event of an emergency – one small fire inside would have been catastrophic. No atmospheric system to monitor interior gases such as oxygen, carbon dioxide and carbon monoxide. No emergency air breathing system. The viewing window was only certified to 4,000 feet, not the 12,500 feet of the Titanic wreck. But the most egregious of all was an egotistical assumption by the CEO that he knew better than everyone else around him.


I wonder if he put all of this in the brochure and explained that philosophy to the people in the sub who lost their lives that day.


Everyone makes mistakes. Everyone has a moment in their lives when they place trust in someone they shouldn’t. Everyone has blind spots, and we’re all ignorant and misinformed about something. The question is do you STAY willfully ignorant or stupid to the point of being determined to hold steady to your course of action to the point where you not only do harm to yourself, but to others as well?


If you do, it’s only a matter of time before you have your own ship sunk, your own personal Titanic-size wreck. Sadly, if you’re the CEO of a company that holds financial data, credit cards, medical records, tax returns, Social Security numbers, birthdays or even the contact details of your clients OR employees, YOUR willful negligence in cyber protection will absolutely harm others.

The Shocking Facts About The New FTC Safeguards Rule That Affect Nearly EVERY Sm …

The Shocking Facts About The New FTC Safeguards Rule That Affect Nearly EVERY Small Business Operating Today


As former President Ronald Regan once said, the scariest words you’ll ever hear are “We’re from the government, and we’re here to help.”


In this case, the government is trying to help by forcing nearly all businesses to implement and maintain a strong cyber security program to protect the customer information these companies host – definitely not a bad thing, and all businesses should take this seriously without the government mandating it.


Sadly, the majority of small businesses don’t take cyber security seriously enough and believe they are doing enough to prevent a cyber-attack when they aren’t, which is why the government is having to step in and create laws (the GLBA Act) to enforce better security protocols.


What Is The New FTC Gramm-Leach-Bliley Act Safeguards Rule And Who Does It Apply To?


Back in April of 2022, the FTC issued a new publication entitled “FTC Safeguards Rule: What Your Business Needs to Know.” This was published as a “compliance guide” to ensure that all companies that fall under the Safeguards Rule maintain safeguards to protect the security of customer information.


While you might think your business is “too small” to need to comply or doesn’t hold any data “that a hacker would want,” you’ll be shocked to discover you are likely to be wrong on both fronts.


Hacking groups use automated bots to randomly carry out their attacks – and small businesses are their #1 target due to the gross negligence and inadequate protections they have. You are low-hanging fruit. That’s why it’s not only the obvious organizations, such as CPAs, financial institutions and credit unions, that need to comply. Here’s a short list of just a few of the organizations that fall under this new law. You should know that this is NOT a complete list:


Printers that print checks or other financial documents.
Automotive dealers who provide financing for car purchases.
Any organization that accepts credit or loans for the goods and services they sell, whether or not the credit is granted.
Companies that do tax preparation or credit counseling of any kind.
Real estate settlements, services or appraisals.
Career counselors that provide services to people employed by or recently displaced from a financial organization.
As you can see, the companies that must comply are growing rapidly. Bottom line, if you handle any kind of financial data or personally identifiable information, you need to make sure you are complying with these new standards.


What You Need To Do Now


The rule requires you to implement a “reasonable” information security program. But what does that mean? For starters, you need to designate a qualified individual to implement and supervise your IT security program – and you cannot outsource this. Yes, you can and should get a professional IT firm like us to guide you on the implementation, but the buck still stops with you.


The person you designate doesn’t have to have a background in IT or cyber security – but they will be the person responsible for ensuring your company is taking reasonable precautions to comply with the new security standards.


Second, the Safeguards Rule requires you to conduct a risk assessment to initiate an effective security program. From there, you would work with your IT company (us!) to roll out a plan to secure and protect the data you have by putting in place access controls, encryption, data backups, 2FA and a number of other protections.


Cyber security is not something you do once – it’s an ongoing effort of protection as new threats evolve. If you want to see where your organization stands on cyber security, click here to sign up for a quick, easy and completely free Cyber Security Risk Assessment. That is the first step toward complying and will give you the information you need to know about your own security stance.