Outsourcing aids many data thefts, Verizon says

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http://money.cnn.com/news/newsfeeds/articles/apwire/7e66826c4dfe743c91d368af3ac464d0.htm

The reliance of restaurant chains and retail stores on outside companies to handle credit-card processing and other information-technology functions is partly to blame for a rash of consumer data breaches over the last few years, according to data sleuths at Verizon Communications Inc.

Even a chain with thousands of restaurants might have only 100 employees in information technology, so it uses outside vendors for many IT functions, said Bryan Sartin, director of the investigative response team at Verizon Business.

"What happens is there's a lack of accountability on the third party," Sartin said.

Verizon's unit investigates a quarter to a third of the big, publicly announced data breaches that occur each year, and hundreds of smaller cases.

In recent years, restaurant and retail businesses have accounted for more than half of Verizon's 230 to 250 cases per year, according to a report Verizon issued Thursday. It often finds that insiders at service vendors are part of the heists.