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information, marketing information, Personally Identifiable Information, Protected HealthInformation, confidential information, and other sensitive, federally-protected, stateprotected,or competitive information. All of this data and information is capable ofbeing compromised in a number of ways, whether by the bad guys, by a carelessemployee, or through a third party vendor. Company management and leadership mustfully assess what paper and electronic company data needs protecting.III.Identify the Threats and Vulnerabilities.A. Who: Your Own Backyard vs. External Threats.As recently seen in the news, organized crime, government-backed organizations, andcompetitors all constitute serious threats to data security. In addition to these externalrisks, a company’s own workforce is a major threat to data security, whether due to lackof awareness, education, or a rogue employee. Similarly, third parties may be able tocompromise company information inadverently.B. How Does it Happen?1. Phishing: “Click Here to Download a Critical Update.”After identifying the threats, the next question is how does a data breach happen as apractical matter? One of the most (if not the most) common sources of data breachesor hacking is phishing schemes. Phishing email messages, websites, and phone callsMarch 6, 2015 4 © 3-6-2015 ALFA International Business Litigation P.G.