Top 5 Business Challenges Facing Today’s Accounting Firms

Accounting, just like every other profession, is affected by our ever-changing world. The increase in technological advances alone can leave your head spinning.  Though technology endeavors to make work easier for everyone, it requires your full attention to keep up.

Accounting Firms

However, technology is responsible for numerous positive changes in every field or industry. An accounting firm can get a lot more done each day with the professional software programs now available. Many boring, repetitive jobs are accomplished with these programs and this allows accounting professionals to utilize their time on more important tasks.

Today’s technology can make it much easier for you to find new employees for your accounting firm, qualified personnel who have already been vetted. Most of today’s accounting firms have embraced the changes that are occurring in our technology-driven world. And yet, many are undergoing dramatic changes that affect their business from various angles.

From cyber threats to rising costs, the accounting industry is facing its share of tough problems. Savvy business owners overcome these challenges and move forward. They turn these problems into stepping stones that lead to new opportunities. Still, these issues can slow down the workflow and require too much attention. The struggle can be tiresome and never-ending.

Below are our top five tough problems that accounting firms face today.

1)Retiring Baby Boomers

Each year, approximately 4 million baby boomers retire. This trend is expected to continue for the next 19 years. These people represent years of training and experience. Every industry is being affected by this, including accounting. As CPA firms across the country lose these knowledgeable employees, they reach out to secure the top talent available. But this trend has created a very competitive environment where an accounting firm must be able to offer more to get those well-trained college graduates. This problem reaches across all industries today and as noted above, it will continue on for another two decades. CPA firms are trying to balance their need for the best employees with budgetary restrictions.

2)Winning the Talent War

While winning the talent war is no easy battle, there are a few options that accounting firms can employ. One of the suggestions that has worked for many firms involves enhancing your company’s brand. Highly skilled workers want to be associated with a good company that has an outstanding reputation. As accounting firms are struggling to get the best talent available, they’re realizing how important their brand is. There are numerous ways to elevate your brand and in some cases, it will benefit accountants to hire consultants who specialize in this area.

Below, are just a few ways to improve your reputation and attract those talented college graduates you need to move your business to the next level:

  • Get your CPA firm involved in community activities. For instance, volunteer once a month at a soup kitchen, children’s hospital, or orphanage. Nothing speaks louder than a group of professionals willing to give their time and talents to help the poor and needy.
  • Improve your culture. Many companies have greatly benefited by improving their company culture. That’s the secret behind the huge successes of Google, Microsoft, and Disney. Employees love where they work. They’re proud to say they work there.
  • Create High-Profile Events. This can be as simple or complex as you like. Some business owners write a book and then create book-signing events on a regular basis. Others do webinars each month. For instance, in the accounting field, you could create a webinar each month to show business owners how to save on taxes.
  • Post Good Photos of Events. Now that your company is involved in volunteering, in conferences, webinars, and other events like this, be sure to take good photos. Post them online regularly so the public can see what your company is up to.

3)Pressure to Reduce Prices

One of the first things that companies think of when faced with an increase in their expenses is to simply go up on the cost of their services.  As all accountants know, the budget has to work out so that it fits within a reasonable margin. Now that you’re having to hire new talent, fresh out of college, where will the money come from to pay those salaries? At the same time, new accounting firms are popping up all over the place offering lower prices than yours. Increased competition almost always drives prices down.

One of the most successful strategies that companies have used involves making your Brand more valuable. Of course, there are multiple ways to accomplish this. Get connected to industry specialists who already have good public visibility. Work at getting selected for local radio or TV programs where you talk about any number of accounting-related topics. As you boost your visibility in the marketplace, you set yourself up to command higher billing rates.

4)Stand Out

In this day and age, people tend to lump all accounting firms (legal firms, etc.) together. But, you’ve worked your whole life to set your business apart from the others. This means that you may have to work consistently at making your differentiators well known in your community. Why are your services worth more? Why is your accounting firm the best one to work at? These are all questions you should immediately know the answers to.

5)Advancing Technology

The last and perhaps most important challenge that accounting firms face is the constant need to update their technology. You want to have the latest and greatest software programs and network services, but all this can be expensive. To make matters worse, technology is constantly evolving. Today’s smartphones contain advanced features you couldn’t get a year ago.

For many small businesses, the best way to alleviate this concern is to find a great managed IT service provider and allow them to handle the technical aspects of your accounting firm. Make sure your contract with them includes regular updates to the latest network and computer technology. This can cut your overall costs and give you the same technology solutions as an accounting firm twice your size.

Best Email Apps For Small Business Owners Who Use iPhone

Communication is definitely made more accessible as a result of technology. Unlike previous years where people placed heavy reliance on letters and messengers, currently, people can communicate at the tap of a button. Communication is essential in any business. For people to know what is required of them in the business environment, for suppliers to know the exact quantity of products that they are required to supply, and when the supply is necessary, people need to communicate. The most successful businesses place considerable reliance on communication.

Email on Smartphone

Small businesses and especially, those that have just begun, often feel the need to use more affordable means of communication. With the availability of the internet, this is no longer a problem. The number of computers that a business purchases is directly influenced by the size and the income of the business. In this regard, therefore, small businesses may find themselves unable to purchase as many computers as they need. This is where smartphones come in.

Currently, almost everyone in the world owns a smartphone. Smartphones have made life more comfortable. They allow people to access information everywhere and at any time due to their portability. These devices are a gem to small businesses. First of all, almost every owner and employee in small companies own smartphones. People can access their emails when traveling or out working on a job.

For successful and efficient use of smartphones to access emails, small businesses must depend on reliable, practical, and affordable email applications. There are numerous applications which allow people to access their emails through mobile phones. The functionality of these applications is similar though they may provide different features. Depending on the smartphone used and the needs of the small business, smartphone users, and especially those who use iPhones, often develop preferences to specific apps over others.

Google

This is definitely one of the most used applications. Google provides a range of services that small businesses may find attractive. The google app allowing for access to emails called Gmail. Firstly, this app is easy to use. Gmail can be used by even novices without much training. Secondly, it is fast, compared to other apps. A particularly helpful feature of the Google email service is that if you send an email by mistake, you have the option of undoing send. This definitely saves businesses embarrassment if an incorrect email is sent by mistake. The Google application is available online at the Apple store and can be downloaded free of charge.

Microsoft Outlook

This application is particularly loved by iOS users. While allowing the user to access email at his or her convenience, this app enables immediate access to emails from frequent contacts without subjecting the user to looking through other unimportant emails. It sorts out these emails for you. The app allows users access to their calendar, enabling them to mark essential days and reminders. You can set up meetings right from your phone or even attend a meeting. Like the Google app, this app is available in the Apple App store.

Airmail

Though initially meant for Mac, this app is available for iPhone and iPad users. It integrates with Gmail, MS Exchange, IMAP, Yahoo!, AOL, Live.com, and Outlook. This app has exciting features including full inbox sync, interactive push notification, and snooze. It is an Apple Design Award winner.

Spark

Though not as popular as Google, Spark is a great email app for small businesses. This app group emails automatically thus enabling the user to identify the urgent emails immediately. The app is easy to use and faster than most email apps. This app may be downloaded from the App Store.

Edison Mail

This is one of the fastest email apps. It supports most email accounts including Yahoo and Hotmail and is available free in the App Store.

Triage

The primary purpose of this app is to clean up email clutter thus simplifying the process of emailing. You can download this vital app from the App Store.

Inky

Unlike other email apps, this app uses hashtags to organize emails and sort out the important ones from the less important ones. Basically, it applies hashtags as labels to messages. It also signs emails automatically. Get this efficient app from the App Store.

Zero

This app works similarly as Tinder. It allows you to sort out your emails easily by merely swiping right to keep them and left to delete them. It also sorts emails such as newsletters for you. This app is available for free in the App Store.

Newton

This app is available in the App Store. Unlike other services, it is not free but is subscription based. Its main feature is the send later which allows you to draft emails and send them to the recipient later on. It costs $50.

Astro

Controlled by an AI assistant, this app provides both email and calendar services. The Astro assistant can be asked questions and responds to numerous commands. If your business uses Slack, you can integrate with that program to send and share Slack messages. It is available free from App Store.

Why Nonprofit Organizations Should Invest in Microsoft Office 365

Not-for-profit organizations frequently contend with the lack of time and money needed to afford large IT investments that are critical for achieving efficiency in their operations. The few organizations that somehow manage to afford these technologies constantly have to deal with scarce resources and manpower needed to manage the technology.

Nonprofit Office 365

There is another glaring problem within the nonprofit environment: the staff, Board members, and volunteers are often spread across several locations. Further, their rampant use of different devices and operating system (OS) versions tend to result in difficulties accessing the organizations’ latest files.

Microsoft Office 365 – addressing the challenges nonprofits face

Office 365 is Microsoft’s global offering designed to provide eligible users with access to the company’s top-of-the-line cloud-based tools for collaboration and productivity. The service is complete with web conferencing and high definition (HD) video, calendars, business class email, online Microsoft office suite, as well as file storage and sharing.

While Microsoft has a provision to offer these services to eligible, qualified nonprofits as a donation, the organization can purchase important additional functionalities at a small fee.

Beside the rich apps connected to the Microsoft Cloud always being up-to-date, they are available for users on a 24/7 basis.

If these are not reasons enough for you to jump aboard the Office 365 bandwagon, then read along to find out further why your nonprofit should invest in Microsoft Office 365.

Voice and web conferencing allows for easy collaboration

Successful running of any nonprofit heavily depends on the quality of collaboration between its members. Among the suite of tools that come with Microsoft Office 365 is the Microsoft Skype for Business, an all-in-one tool for web conferencing, video calls, voice calls, and instant messaging.

The HD video conferencing capability means that nonprofit teams can meet and collaborate with each other regardless of where they are located. Out-of-office personnel and volunteers can remotely share data and influence timely decision making.

You’ll also like to know that Skype for Business has a note-taking feature that works in real time. This can allow you to keep track of notes and new ideas from every meeting.

Social networking is easier with Office 365

Every Microsoft Office 365 Nonprofit plan comes with the tech giant’s internal social network, Yammer – designed for organizations like your own.

With your own Yammer site, it is easier than ever to bring teams together regardless of where they are located across the globe.

Yammer allows the organization’s internal staff, volunteers, and other stakeholders to connect, share, and collaborate seamlessly at all times.

Teams can edit and share documents on the go

Microsoft Office 365 also includes Microsoft’s cloud-based file-sharing tool SharePoint Online. With this advanced file sharing tool, teams can easily edit and share documents with one another, even on their mobile devices. Many users love the fact that they can actually edit documents simultaneously with colleagues on this cloud-based platform – effectively saving time and the possible confusion associated with back and forth emailing of documents.

There is simply so much you can accomplish with your documents in the cloud. Your board reports will be available in the cloud and you can share them remotely or access them, along with grant applications and other equally essential documents anywhere, at any time.

Microsoft’s online office suite, Office Online, also allows you to create and edit files using lightweight Microsoft Office web apps including Word, Excel, OneNote, and PowerPoint. So, your team will have the liberty to open, view, and edit various document forms right from their browsers, both on iOS and Android devices.

The staff and volunteers can use Microsoft Office 365 to open, view, and edit practically any document on up to five of their devices. This empowers them with the flexibility to work anywhere anytime.

There is guarantee of security and compliance

Data security is one of the greatest concerns to any nonprofit organization. Nonprofits also have to comply with applicable privacy and compliance laws. The good news is, Microsoft’s Office 365 is engineered to the highest level of privacy and security standards.

The service has built-in malware protection to safeguard your data in the cloud. As such, your nonprofit organization can have peace of mind storing its data in the cloud and sharing even the most sensitive information without running the risk of noncompliance with data protection requirements.

Nonprofit organizations enjoy 24/7 support

Office 365 offers the luxury of 24/7 professional-level customer support so you won’t need any IT staff to stay on call. The level of support your nonprofit organization gets depends on your organization’s Office 365 Nonprofit plan.

Final thoughts

Technology-related problems can create indecisiveness and slow down efforts in the nonprofit environment, eventually taking a toll on important mission activities. This can hurt productivity overall. With its full capabilities as an installed software, as well as its cloud accessibility that ensures collaboration both online and offline, Microsoft Office 365 is an excellent tool for every nonprofit organization that wishes to achieve maximum efficiency.

Which Office 365 Product Is Right For You?

A Look at the Current Versions of Microsoft Office 365, Features, and Prices

Microsoft Office 365 Plans

Business owners agree that Microsoft 365 is an indispensable product that they could not live without. It includes popular programs that people the world over have been using for years. The go-to word processing program is MS Word. People love this software and swear by it. Even those older versions like MS Word 2007 are still popular with the masses.

When it comes to dealing with spreadsheets, there really isn’t a better program than Excel. The same goes for PowerPoint. Most of us even use this program for our home videos. If there is a magic ingredient as to the popularity of Microsoft products, it is probably how user-friendly they are. The company very wisely uses the same Ribbon at the top of each program.

If you know how to use Word, you can learn PowerPoint, Outlook, or Excel very quickly. The formatting tools are basically the same. In spite of how useful and user-friendly these products are, most business owners are not familiar with the various Microsoft Office 365 packages. The company wanted to develop specific office programs for industries like education, government, non-profits, etc. They also wanted to offer scaled up versions for larger businesses. Though these seem like great concepts, they’ve created somewhat of a “Monster” when it comes to figuring out which package your company should be using.

To remedy that, we are offering a simplistic overall view of each product. You can see the basic features offered and the approximate cost. If you’re still unsure, talk to other business owners or ask an IT specialist.

Office 365 ProPlus

This version includes the standard office applications such as Word, Excel, PowerPoint, Outlook, and OneNote. You can also get limited usage of Publisher and Access. The cost is around $12 per month per user. Cloud file-storage and sharing with OneDrive is included but business email is not. The product is installed directly on the user’s computer and licensed by user, whereas Office ProPlus is licensed by a device.

Office 365 Enterprise E1

This product offers businesses the use of MS Office online for phones, tablets, and computers. At the price point of $8.00 per month per user, Office mobile apps can be installed on up to 5 phones and 5 tablets per user. The software is available for iOS®, Android™ and Windows phones and tablets with screen sizes up to 10.1”. Also included are some valuable services that businesses use every day including:

  • Exchange
  • OneDrive
  • SharePoint
  • Yammer
  • Skype for business
  • Microsoft teams

Office 365 Enterprise E3

For around $20 per month per user, businesses can get all the features offered with Office 365 ProPlus and Office 365 Enterprise E1. All of the applications and services listed above are included in that price. In addition, this software package contains compliance tools, which have practically become indispensable today due to the intricacies of HIPAA and other compliance programs. Security tools, along with data loss prevention round out this suite of programs and services.

Of course, there’s a lot more to it than that. Broadcast Skype for business allows you to engage with up to 10,000 people. Attendees can join from any device and they can interact with speakers. This tool alone could be worth its weight in gold if you have a big audience you want to get a message out to. You can perform instant polls or get immediate reactions to a new product or service.

Microsoft StaffHub allows users to manage their workday with information sharing and schedule management apps. These are just a few of the many great features included in this suite of programs.

Office 365 Enterprise E5

This product is the Cadillac of all MS Office products. It includes everything mentioned in the other packages, along with voice capabilities, analytics, and advanced security features. It comes at a cost of $35 per month per user, but it does include all the productivity tools and services a business could need.

It is built for large organizations with diverse needs. It’s available for just about any device and includes some exceptional business calling features. One of the most popular features, MS Teams connects your employees so they can discuss their latest project in real time.

Advanced Threat Protection can give you greater control over hidden threats embedded in emails, links, and attachments. This is a great feature that can prevent your employees from accidentally opening the door to cybercriminals. One cyber breach today will cost you around $1.3 million. Large organizations with the budget for it are utilizing every security tool available to protect their important data. Encrypted email is a must these days and it comes standard with this package.

Not included with any other packages, Power Bi is a useful business analytics service that gives you some powerful business intelligence capabilities, including interactive visualization. Users work with interactive dashboards to create reports and data warehouses. Power Bi allows users to work with data in many different ways, from cleaning and loading it to integrating the data where desired. Microsoft has plans to continue adding features to this program so that it contains the most sophisticated business intelligence tools available anywhere.

Conclusion

All the above Microsoft Office products require signing an annual contract, but most businesses realize that they simply can’t function anymore without the rich array of tools that Microsoft provides. These programs are available from any device or location. They include various levels of customer support. Each year when these products are updated, users get those updates for free. That means you’ll always have the latest version of your favorite Microsoft programs. MS Office 365 is optimized for any device.

Cybersecurity Gaps Still Plagued Organizations in Spite of Better Risk Management Protocols

A recent cybersecurity survey shows that overall healthcare approaches to cybersecurity have improved in recent years. Most organizations have embraced their need to protect their data from intrusion.

healthcare cybersecurity

A study conducted by Mountain View, California-based Symantec and HIMSS Analytics[1] found that healthcare organizations are showing improvements in risk management strategies. Although their efforts have still not been satisfactory, they do represent a vast improvement. Most security experts believe there are gaps in most company’s security tools.

The newer cyber risks include medical devices. Hackers can now hack into almost anything including medical devices and appliances due to the expansion of the Internet of Things (IoT). Since so much information is now available in the Cloud, it’s more important than ever to protect this data.

The Symantec and HIMSS Analytics study[2] covers the current position of healthcare organizations as to their investment and efforts to strengthen their security. It accentuates some of the vulnerabilities that many organizations still have. There is one positive finding from the survey showing that healthcare organizations have matured in their understanding of cyber security. In the past, a lack of understanding about hacking, malware, and ransomware has prevented many businesses from taking the threat seriously enough.

In the past, a company viewed cybersecurity as a responsibility of their IT department. They did not get involved in what was done to protect company data. Instead, they relied on their CIO or IT staff to do the right things to protect company information. Today, things have changed. Cybersecurity is discussed on every level, from the mail room to board meetings. According to the report, stronger security measures have been recently taken by eight out of ten organizations. However, about half of them admitted that they know they are vulnerable on some levels.

Another finding indicates that 60 percent of healthcare providers believe that risk assessment, not HIPAA compliance, is a more effective method of securing data against cyber thieves.

This progress has faced a few challenges as discovered in the research conducted by the Symantec and HIMSS Analytics survey. The main challenges faced were the efforts to acquire enough resources to counter the continually evolving threat margin. During 2017, the U.S. Department of Health and Human Services reported that there were 295 data breaches at hospitals and healthcare providers. That number is expected to triple for 2018.[3]

A number of hindrances to improving security programs in the healthcare industry were cited. Not surprisingly, about 73% said that budgetary restrictions were a significant barrier. Staffing came in second with lack of the essential skills a close third.

The survey also discovered that there was a substantial lack of sustained investments in cybersecurity by healthcare providers. According to the respondents, 74% of the providers set aside 6% or less of their IT budget to IT security. Nearly 45% of the health organizations’ respondents allocated only 3% on security. These IT expenditures have remained about the same for three years in a row. In comparison, the financial industry spent an average of 10 to 12 percent of its IT budget on security.[4]

There are a number of steps suggested by the research report in the form of recommendations that all healthcare organizations can take to improve their risk management:

  • Create greater awareness among employees and conduct regular training across the organizations.
  • Engage the Board on implications and the risks of failing to allocate adequate resources to invest in better cybersecurity resources and tools.
  • Employ a comprehensive cyber defense platform that addresses each gateway cyber-thieves use.
  • Ensure all the stakeholders (IT, Legal, PR and Communications, Clinical Staff, Executives, etc.) are actively involved in Incident Response planning.

According to Alex Wirth, a blogger who analyzed the research report by the two institutions, “Every aspect of a provider’s approach to cybersecurity must be conducted from a business risk perspective”.

His opinion expresses that of many IT security experts. The only way that cybersecurity for the healthcare industry will be given the seriousness it deserves is for everyone involved to realize that this problem will not just go away. It must be addressed and given the time, attention, resources, and money that it requires to stop the spread of cyber theft. In the long run, this is the most sensible and cost-effective approach.

CONCLUSION

All of the security people and resources involved in cyber security for a healthcare organization must work together in order to maximize detection and curb security events. The best way to go about this is to keep the board informed and adopt an effective security framework. A sufficient budget for IT security must be allocated each year. Otherwise, care delivery and patient safety will be highly compromised.

[1] https://www.symantec.com/connect/blogs/new-research-healthcare-organizations-bolstering-cybersecurity-budgets-and-resources-significa

[2] https://resource.elq.symantec.com/LP=2713

[3] http://www.healthcareitnews.com/slideshow/biggest-healthcare-breaches-2017-so-far?page=1

[4] https://www.sans.org/reading-room/whitepapers/analyst/risk-loss-security-spending-financial-sector-survey-34690

Technological Trends in the Public Sector for the Future

This article is an analysis of topics related to technology that topped the charts in 2017 and are still trending in 2018. No doubt, cybersecurity was a priority topic and many positive advancements were made there. The Internet of Things became a much more talked-about issue, mostly due to its vulnerabilities to hacking schemes.

Government Computers

The real world implementation of new technologies used in ‘Smart Cities’ was a hot topic in the public sector. This article will rely on information generated from two top government IT institutions, which are the National Association of State Chief Information Officers (NASCIO) and the Public Technology Institute (PTI). The article will also look at the perspective of private entities on the future of smart technology, cloud technology, and the impact that cybercrimes will have on these.

Government perspective of Important IT Topics

Cyber Security

It is not surprising that this topic created quite a bit of buzz back in 2017 and is still at the top of the list. This year, NASCIO and the PTI teamed up to offer a free webinar called Technology Forecast 2018: What State and Local Government Technology Officials Can Expect. [1]

Of course, security is a top priority and major concern for both the state and local governments. The government has made a resolution to address the growing concerns about cybersecurity that seem to be holding technology back. With so many data breaches occurring each month, private organizations, the government, and businesses of all types and sizes have been hit by cyber thieves. Every organization seems to be vulnerable, so leaders and experts believe that, in order to move forward with greater technological advancements for the future, the issue security must be a top priority.

A recent article on the Government Technology website[2] discusses why businesses need a cybersecurity framework.

Smart Government and Cities

Many cities and towns have embraced technology across their operations and service delivery sectors. This includes migrating data to the cloud, which a big step that can greatly improve a city’s ability to handle larger amounts of data each day. The transportation industry is using an app that tracks city buses so that riders can get accurate bus times. Seemingly small improvements like this can have a big impact on city services. Smart cities will run much smoother. The costs should also be lowered due to the automation of many city services. These services should be available cheaper rates and they should work much better.

Cloud Services

Governments are working to upload all their data to the cloud, where it will be much easier to access and manage. Most government entities are expected to hop on board this year according to a recent MeriTalk Survey. This survey found that 76% of state and local agencies are planning to increase their resources allocation to improve and increase cloud services.[3]

Private entities’ perspective on Government and Technology

A UK company called Deloitte[4] issued a report last year called Kinetic Enterprise. The report revealed many key insights in the trends that are shaping and redefining the role of Information Technology in disruptive technologies.

The report states that cutting-edge establishments are looking beyond implementations in a single domain. Instead, they are opting for projects that can affect a whole array of services, like the delivery of electricity, gas, and water to residents.

They are evaluating the ways disruptive technologies can work in harmony to create innovative tools that can redefine business. The report went on to say that federal and state government leaders could go a long way toward advancing sectors like machine learning, finance, the Internet of Things, blockchain, and others.

An article called, Gartner Top 10 Strategic Technology Trends for 2018[5] named three megatrends that they believe will drive digital business technologies over the next decade:

  1. Artificial Intelligence
  2. Transparently Immersive Experiences
  3. Digital Platforms

In the article, Gartner said it believe that businesses and organizations would lose ground if they did not take advantage of emerging technologies. The article stated that “States are increasingly being asked to referee fights between mobile phone carriers and local governments, as the wireless industry sets out to build the next generation of data networks. 5G Technologies requires a much denser network of 10 to 100 times as many antenna locations….”

On election cybersecurity, the article states: “The 2018 elections could provide an opportunity for states and localities to restore confidence in voting systems that came under scrutiny during the 2016 presidential campaign.”[6]

Conclusion

Technology is definitely having effects on the government and public sector. Many experts see this as a way for the future of mankind to ensure greater progress. For instance, building Smart Cities can cut back on pollution, use sustainable materials, and make life easier for everyone. Many experts believe that the only thing holding progress back is the vast number of security breaches that occur each day around the world. Once we are able to stop those attacks from occurring, the sky’s the limit.

[1] https://www.nascio.org/Publications/ArtMID/485/ArticleID/611/Technology-Forecast-2018-What-State-and-Local-Government-Technology-Officials-Can-Expect-webinar

[2] http://www.govtech.com/blogs/lohrmann-on-cybersecurity/

[3] https://www.meritalk.com/articles/policy-based-automation-key-for-multi-clouds/

[4] https://www2.deloitte.com/us/en/pages/public-sector/articles/government-tech-trends.html

[5] https://www.gartner.com/newsroom/id/3812063

[6] http://www.governing.com/topics/politics/gov-2017-9-issues-to-watch.html

Nest, Google’s Smart Home Division, Discovers Leaked Passwords and Contacts Customers

Nest Labs, a division of Google, recently discovered a list of email addresses and passwords that had been published online. As part of their ongoing commitment to protect their customers from hackers, Nest continuously monitors databases found online of stolen or leaked passwords. When they found that some of their customers’ passwords were listed on a phishing website, they sent out an email to customers.

Nest Password Leak

Consumers remain the weakest link

Security experts all agree that the weakest link when it comes to internet security is the consumer. People click on suspicious links that download a virus or worm onto their device. They also frequently use the same password across multiple accounts. Many users visit sites that are unsafe where they may be exposed to malware. Often, consumers use the same password for years. All these practices make it very easy for hackers to steal passwords then break into various accounts.

Nest takes proactive stance

When Nest found the databases of leaked passwords, they sent out emails to all of their customers that read in part:

“Nest monitors publicly leaked password databases and checks our own databases for matches. We’ve found that your email and password were included in a list of accounts shared online. Common causes of password theft are falling victim to phishing emails or websites, malware, and password reuse on other websites which may have been compromised.”

The letter goes on to give instructions to users about what to do next and this applies to anyone who suspects that their password has been stolen. Instructions are below:

  1. Sign in to your Nest Account (bank account, credit card account, etc.) immediately.
  2. Navigate to the account management screen and find the item that says, “Reset Password.”
  3. Select a new password. Be sure to use numbers, letters, capital letters and symbols. An example of a good password would be: 57Rop*82!@HK. A password like this is much harder for crooks to decipher. An example of a weak password would be: time1234. This password would be easy for hackers to learn.
  4. Click “Save” to save the new password. Be sure to make a note of the password.
  5. You can also go to the log-in screen of any account including Nest and click on “Forgot Password.” This will initiate a procedure where you are sent a code (usually as a text message). Enter that code where prompted, then proceed to create your new password.

Nest reminded its users that unless they did log on and change their password within a set length of time, the company might disable access to their account. Often, users put off changing passwords so the company most likely felt like it was necessary to include this veiled threat to shut down the account until a new password was chosen.

How to change your Nest password using the app

The company also included instructions for changing the password via the Nest app and these are given below for your convenience:

  • On the Nest app home screen, tap the Menu icon.
  • Select the Account icon.
  • Select “Manage account,” then “Account security,” then “Account password.
  • Enter your current password and your new password, then tap “Save changes.”

How to use Two-Factor Verification (2FA)

Nest also offers the option of 2-step (2-factor) verification, which can add a layer of protection to any account. This is very important to do for financial accounts and other accounts like Nest where your home, family or money might be at risk. The instructions for adding 2-step verification are given below:

  • On the Nest app’s home screen, select the Menu icon at the top.
  • Select Account.
  • Select “Manage account,” then “Account security.”
  • Select “2-step verification.” Then tap the switch to toggle 2-step verification on.
  • Follow the prompts to enter your password, phone number, and the unique verification code sent to your phone.

Cyber theft increasing globally

Many experts are now recommending that customers add 2-step verification to all their online accounts. The increase in hacking and phishing schemes worldwide has alarmed many security experts, as well as consumers. It has become commonplace to read that one of your favorite stores or most trusted brands has lost millions of data records to hackers.

This fact has spawned a new generation of security experts and advocacy groups whose purpose is to stem the tide of the growing number of cyber thefts. One of these groups called the Internet Society was the first to discover the Nest breach when they stumbled across an email from Nest to one of its customers. The society forwarded the email to the Online Trust Alliance and they published it as a blog post. Once this occurred, the story made international news.

How Nest learned of the breach

Though Nest has not revealed how they learned about the compromised passwords, it is believed that they regularly check a site called “Have I Been Pwned?” which is run by Troy Hunt, a security researcher. The site can be used to check whether any of your passwords have been stolen or leaked online. It includes half a billion passwords and other credentials stolen from consumers all over the world.

About Nest Labs

Nest Labs, now a division of Google, provides home automation tools that are programmable, sensor-driven and self-learning. Using your home’s Wi-Fi system, Nest products can be controlled either at home or remotely. These products include smoke detectors, thermostats, indoor and outdoor security cameras, security systems, lights, and other common household appliances.

Nest was founded in 2010 by Matt Rogers and Tony Fadell, engineers who formerly worked for Apple. The company grew quickly to 130 employees and within just a few short years, Nest Labs had grown to 280 employees worldwide. In 2014, Google acquired the company for an estimated $3.2 billion. Today, the company has over 1,200 employees. They recently built a state-of-the-art engineering center in Seattle, Washington.

Internet Security a Top Priority, Experts Claim

Experts in the tech world are giving their input on what is planned by state and local Chief Information Officers (CIOs) in terms of security for all of today’s technology. For so long, technology has existed and yet the public has taken its security for granted. But, sometime last year, giants of industry like Cisco Systems, have revealed that plans are underway to bring new and better levels of security to the cyber world. According to Britt Norwood, the head of Cisco Systems’ state, local and education sales for the western U.S., it’s time that technology had some real-life applications.[1]

Internet Security

According to Mr. Norwood, the state and local government of the future will rely heavily on technology for its management. From Smart Cities to cloud computing, innovative breakthroughs will change life as we know it. Life will become easier while access to public services will become cheaper and more readily available.

A great example is the Internet of Things. All of our medical devices and appliances are now connected via the IoT. However, these devices are extremely easy to hack and that puts consumers at risk. This reveals our ongoing need to implement stronger cybersecurity measures to protect ourselves. The government, along with the private sector now understands the importance of keeping hackers out of our systems, networks, and databases.

To address these issues, a host of new and radical changes will take place over the next few years. These include four major areas as cited below.

Adoption of the Internet of Things at Community Level

There is no doubt that IoT has had the attention of the public sector for a few years now. Informal discussions on the implementation of IoT applications by the government in delivering services to citizens have been underway. Imagine a situation where parking meters are connected and pricing on parking are determined by the time of day. Or even an application that is able to track buses in real time to give accurate information on wait-times to patrons at bus stops. This would most definitely improve the quality of services delivered to the public.

Each town and city has its own set of unique problems with delivering affordable, reliable city services. Each jurisdiction may adopt its own unique applications according to what suits them best. These applications will definitely make a positive change in the way cities and states are run. But they must include the best security to protect consumers.

Cyber Security Still a Top Priority for Governments

With technological advancement comes increased risk and vulnerability in terms of security. It is very important that the government stays on top of it. It would be of no use to continue investing in digitalization and increasing connectivity without having in place measures to address the issue of data breaches.

That is why for the last four years the National Association of State Chief Information Officers (NASCIO) in their ‘State CIO Ten Priorities for 2017’ report, ranked security and risk concern as a top priority.

According to Yejin Cooke, who is the director of government affairs for NASCIO, security and risk management are not going to lose their importance any time soon. In fact, the public is only now becoming aware of all the threats across the globe that can endanger everything from air flights to ground transportation or satellites. A society cannot operate without knowing for sure that hackers will not have access to our most important sectors.

It is vital to have well-organized and comprehensive cybersecurity plans in order to counter major attacks. Some states like California and Michigan have made milestones in terms of well-laid security plans. They are setting the pace for other states.

Uploading data to Cloud Priority

According to Chip George, NetApp’s senior director of state and local government and education for the U.S. public sector, moving data to the cloud has proven to be a way in which governments are able to deal with financial constraints and legacy technologies. A recent survey by MeriTalk found that 76% of state and local agencies are planning to increase spending on Cloud computing.[2]

State and local governments must also consider their environment so as to adopt a model that best suits them. The Cloud has three models: public, private, and hybrid. Data management can complicate issues if governments resort to relying on multiple cloud management providers.

In addition, George pointed out that, “Agencies must adopt a data fabric, so that data across all cloud environments is seamlessly integrated and managed with the same set of tools, no matter the cloud provider.”

In the future, when governments are trying to evaluate which model suits their needs, they will have to consider these and many other factors dealing with the proper implementation.

Collaboration Tools

Another mechanism that has become highly prioritized across governments is collaboration tools where centralized resources are optimized. By optimizing and centralizing technology, costs are lowered and a more streamlined cyber security platform is installed. Good collaboration tools make sense. They reduce costs. They put everyone on the same page.

Conclusion

Technology is here to stay, but it evolves at a rapid rate. Though this is good on some levels, when it comes to cyber security, the experts have not been able to keep up with the hackers. Cyber thieves must be stopped in order for businesses and governments to improve efficiency in service delivery, cut their costs, and protect consumers from cyber criminals.

[1] https://statetechmagazine.com/article/2017/02/5-priorities-state-and-local-government-technology-year-ahead

[2] https://www.meritalk.com/study/destinationcloud/

Are Parents Being Good Role Models for Children When It Comes to Technology?

Everyone likes technology, right? It’s amazing what you can do and find out about the use of technology. However, technology itself is addictive and parents are not an exception. Today, most parents pay more attention to their computer or phone screen than they do to their children. Even busy parents stay on social media too much. They constantly check their email. They watch television shows or news programs on their smartphones—all without realizing that this behavior does harm their children’s development and well-being to some degree.

teenagers smartphones

According to research done on child psychology, some of the problems that children experience today can be contributed to their parents. Thanks to technology, children today feel that they have to compete for their parent’s attention. This is because most of the time parents are glued to their screens. Some even respond harshly to their children when the child tries to get their attention. Many child psychologists believe there’s a serious need to find a balance between technology and taking care of your family.

Studies show that a modern parent spends too much of their time online or involved in texting and social media. After working all day and taking care of the home, parents often leave very little time that they can commit solely to their children. Family outings where all family members are given a chance to really bond are very scarce these days. The inability for parents to control the amount of time they spend on their phones or laptops has also extended to their children. This is mainly because children look up to their parents. They mimic what they see parents doing.  Many kids have become antisocial and some have even become introverts. The ability to develop real-world relationships is missing in many people today.

Effects of parental technology use on children

  1. Children may constantly seek attention. Child rearing is not easy. Children are dependent beings that require more attention than most adults. Parents constantly being online or on their phones make children feel deprived of the attention they deserve. They may not know how to tell you, but they miss play time, storytelling time, kitchen activities, and so forth. This is not good for the emotional and mental development of the child. It may lead the child to be withdrawn or even lower their self-esteem. In these cases, the child may act out.
  2. A study also shows that children whose parents are constantly messing with their phone or on social media feel less supported by their parents. This is mainly attributed to the lack of communication between the parents and the children. Parents don’t get to know what’s going on in their children’s lives or even how they are progressing in school. Communication is extremely important to a child’s development. Lack of communication can easily divide the family.
  3. Need for privacy. The modern-day parent on social media loves to post pictures of themselves and their children. They never seem to care how that affects the kids though. What you post and the comments you make on social media can shape how your children perceive you. Many children say they don’t like some of the photos their parents share online. Kids have a right to privacy too.

Ways to find a healthy balance between technology and parenting

Establish good technological habits. This means simply setting time limits for surfing the web and sticking to them. This is most effective if the kids are still young. Don’t just set the time limit, but make every effort to stick to it. Spend that extra time each day with your family and give them the attention they need.

Be a role model. One can achieve this in various ways. Avoid fooling around with technological gadgets during dinner. Give your family your full attention at social outings. Listen to them when they speak to you. This will help the children learn that they, too, need to find a balance between technology and their social life.

Turn off work. Some parents constantly feel the need to access work email and work projects. They wind up spending too much time checking their mail or in group chats. By turning off work when you get home, you can fully concentrate on your family. You can give your spouse and children the attention they need.

Final thoughts

All the studies and findings clearly show that parents need to find a balance between technology and parenting. It not only helps the parent to spend more quality time with their family, but they can monitor their children’s growth. They can spot behavioral problems. It’s important to know what your children are up to and how they are progressing in life. It helps you to be a better-rounded individual and it helps your kids to grow up into responsible adults.

Medical Devices Security Plan by FDA

The U.S Food and Drug Administration (FDA) has recently launched their Medical Device Safety Action Plan whose main focus is to give assurance in the safety of connected Medical devices. The organization has put its main focus on patients relying on medical devices as seen from their Medical Device Safety slogan: ‘Protecting Patients, Promoting Public Health’ as part of their Action Plan.

FDA Medical Device

The plan is molded in a way that it heavily relies on cybersecurity measures as part of its plan to reduce risk and curb breaches that are associated with connected devices. After all, security breaches cost everyone time and money and better cybersecurity is something that the whole world is working to achieve. Some of those measures are outlined below:

  1. A Consideration that firms should update and patch device security product design and submit a “Software Bill of Materials” to the FDA.
  2. Ensuring that there is an up-to-date guide to the medical device’s security before it is released into the market.
  3. Establishing a body to follow up on post-market requirements on firms in adopting policies and procedures for reporting known threats or risks.
  4. Finally, analyzing the improvements of CyberMed Safety (Expert) Analysis Board (CYMSAB).

This plan is well structured, but before it is even implemented and checked on its suitability to address all the cybersecurity breaches, below are two very real concerns:

  • What is the security plan in place for those devices that are already in the market?
  • What approach is in place to prepare for the future of cybersecurity?

The plan is obviously inclined to address the future security of medical devices. It has failed to adequately address the past which affects the present. More importantly, it may not adequately address the evolving threats that cyber thieves represent.

Here are some of the recommendations we put forward for consideration when reviewing the plan for Medical Device Safety:

Pre-market ‘hardening’ of Devices

Manufacturers should be required to ensure that their devices are up-to-standard where cyber security is concerned before releasing them into the market. There are various bodies from which the standard can be set. The Defense Information System Agency (DISA) or the Center for Internet Security (CIS) can be used as benchmarks for ‘hardening’ devices. This way manufacturers may be able to bypass the lengthy processes required to test and approve security updates once devices get into the marketplace.

Constant evaluation of Device connectivity

There should be a requirement that the manufactures set a clear connectivity path in their devices. This step is to help in monitoring any behavioral changes that are foreign and unwelcome. The users are also better able to understand the range of device performance on the network.

Standardized Communication by the Manufacturers

An organization deals with thousands of devices from different manufacturers, so imagine how difficult good communication will be. Today, providers are expected to contact the manufacturers about the known or expected vulnerabilities of their devices. This leads to a lot of time wasted in trying to ensure the security of the device environment. In some cases, manufacturers are being asked to come up with a timely resolution to a problem experienced. An effective process in risk mitigation would be to set up rules about the expected standards of communication between the manufacturers and the providers.

Accountability by the Manufacturers

Manufacturers should address the issues related to vulnerabilities. The devices should be tested and certified ready for use by the manufacturers and not the providers. Especially when it comes to system or software updates, the manufacturers of devices should be held accountable. The manufacturer is better positioned to test and approve their applicability or even make recommendations on their usage to their client base. This way, both parties are aware of who is accountable in case of a security breach.

Manufacturers should also be required to come up with a mechanism to monitor the performance of devices connected to the network on a full-time basis. This monitoring should be modified to suit all organizations whether small or big.

Consider the costs

The FDA’s plan should have factored in the amount of money that will be required to ensure this plan is carried out efficiently. For instance, the bandwidth required to store current data, devices, and patches are enormous and most providers cannot adequately handle it. Resource support is at the core of ensuring that medical devices are secure and continuously operate as expected.

CONCLUSION

Cybersecurity is becoming a serious topic especially when it concerns medical devices; people’s lives depend on them. If there’s a chance that they could be compromised, the stakeholders involved, including providers and manufacturers, should treat cybersecurity with the significance it deserves. The FDA is often relied upon to handle these important tasks, but in today’s world, it will require everyone’s assistance. The job is too big to leave to one organization.