A recent draft analysis from J. Campana & Associates suggests that schools, government bodies, charities and other public or volunteer-run organizations are the source of a majority of reported information-security incidents.\n\nThe study — due for release in early 2009 — attributes the exposure of tens of millions of consumer records to breaches in the public and not-for-profit sectors, though the researchers warn the totals are hard to pin down precisely.\n\nJoseph Campana notes a major complication: many smaller entities simply lack the tools or procedures to discover intrusions, and they often do not follow standard reporting channels when a breach is discovered. That makes official counts unreliable and likely understates the real scope.\n\nNot all incidents carry the same threat. High-profile equipment thefts, such as the 2006 loss of devices containing data on 26.5 million U.S. veterans, were ultimately linked to burglaries and, according to investigators, produced no confirmed cases of identity theft tied to that event. Still, the presence of sensitive data on stolen media is a serious concern.\n\nSmaller-scale breaches can be more dangerous on a per-person basis: when an organization with limited protections is hit, affected individuals are statistically more likely to suffer harm. Campana’s work highlights that local governments in particular report far fewer breaches than expected, suggesting detection and reporting gaps at town, city and county levels.\n\nThe problem extends to organizations unfamiliar with regulatory obligations. Last October, the Federal Trade Commission pushed back the compliance date for its “Red Flags” identity-theft rule after finding many small businesses, utilities and nonprofits were unaware the rule applied to them. The rule requires covered entities to implement programs to detect and respond to identity theft.\n\nOn the technical side, the report finds a large share of government incidents involve computers or electronic storage systems (about 35%), while roughly 10% stem from software/process errors — for example, label-printing systems that inadvertently reproduce Social Security numbers. The education sector, though a small slice of U.S. enterprises, accounts for a disproportionately large share of reported breaches.\n\nThe takeaway: improving detection, reporting and basic controls in small public and nonprofit organizations would give a far clearer picture of the problem and reduce the number of people put at risk.

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