Discuss the security implications From the perspective of your department and management level, discuss the implications of a security breach in the company's infrastructure (all forms - human, technology etc.) 1. Suggest TWO reasons why such breaches could occur and state how they can be avoided. Based on the above requirements above, critique the below discussion: A security breach is a form of fraud that occurs when there is unauthorized access to a device, facility, data, network, or program (Ghimiray, 2023). These breaches can be devastating to a company and can have many implications such as its financial assets being lost or stolen, and the company's reputation being tarnished. Companies like MGMT eCash Inc., which engage in online markets like cryptocurrencies are very susceptible to security breaches. Two reasons why security breaches may occur are:- · Digital currencies like crypto are accessed through a private key, giving the user access to their digital account (City National Bank, n.d). Most people store this private key on their computers for easy access. Hackers or anyone else who for some reason has gained access to the user's computer, would now have a means of entry to this user's digital accounts. · Digital currency markets are decentralized and so, there is no administration or governing body overlooking the creation, exchange and movement of these currencies (City National Bank, n.d). This therefore means that investors of cryptocurrencies are essentially conducting business at their own risk. Hence, the decentralization of the digital market may encourage hackers and fraudsters to attempt to unlawfully access the data and online portfolios of buyers and sellers. For this reason, a possible security breach may occur. Preventive measures that may help stop security breaches from occurring: · The use of a hardware wallet to store private keys can prevent hackers from gaining access to the company's digital accounts, even if its computers are infiltrated. · The Finance department can work along with H.R. to put together security training for all staff engaged in dealing with cryptocurrency for the company. Staff will be trained on daily precautions that should be performed in an effort to reduce the possibility of security breaches.
Discuss the security implications
From the perspective of your department and management level, discuss the implications of a security breach in the company's infrastructure (all forms - human, technology etc.)
1. Suggest TWO reasons why such breaches could occur and state how they can be avoided.
Based on the above requirements above, critique the below discussion:
A security breach is a form of fraud that occurs when there is unauthorized access to a device, facility, data, network, or program (Ghimiray, 2023). These breaches can be devastating to a company and can have many implications such as its financial assets being lost or stolen, and the company's reputation being tarnished. Companies like MGMT eCash Inc., which engage in online markets like cryptocurrencies are very susceptible to security breaches.
Two reasons why security breaches may occur are:-
· Digital currencies like crypto are accessed through a private key, giving the user access to their digital account (City National Bank, n.d). Most people store this private key on their computers for easy access. Hackers or anyone else who for some reason has gained access to the user's computer, would now have a means of entry to this user's digital accounts.
· Digital currency markets are decentralized and so, there is no administration or governing body overlooking the creation, exchange and movement of these currencies (City National Bank, n.d). This therefore means that investors of cryptocurrencies are essentially conducting business at their own risk. Hence, the decentralization of the digital market may encourage hackers and fraudsters to attempt to unlawfully access the data and online portfolios of buyers and sellers. For this reason, a possible security breach may occur.
Preventive measures that may help stop security breaches from occurring:
· The use of a hardware wallet to store private keys can prevent hackers from gaining access to the company's digital accounts, even if its computers are infiltrated.
· The Finance department can work along with H.R. to put together security training for all staff engaged in dealing with cryptocurrency for the company. Staff will be trained on daily precautions that should be performed in an effort to reduce the possibility of security breaches.
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