As technology staffs contend with ongoing changes to the data distribution landscape, it is important to keep abreast of data security risks and to understand the significant importance of properly managing customer’s private data.
The Ponemon Institute recently released its annual data breach report which provides stats on data security issues and trends. With more than 277 companies involved and 1400 individuals interviewed, this report provides a current and unique perspective of potential security risks associated with even the smallest data breach.
Below are highlights of the report which indicates data breaches remain a difficult challenge.
- The report identifies three key causes of data breaches worldwide:
- Malicious Attacks – 37%
- Negligence – 35%
- System Errors – 29%
- The average per capita costs of a data breach increased to $136 per capita over the $130 per capita from the previous year.
- The US had the highest total per incident cost of $5,403,644.
- In 2013 the average number of breached records was 23,647
- Healthcare, Financial and Pharmaceutical industries continue to be the top industries with the highest per capita costs incurred.
Ironically, the report noted that organizations that notified victims too soon following a data breach actually incurred higher costs. This is an indication that an incident management plan should be in place to properly mitigate the data breach event.
It’s clear, based on the data in this report, that companies need to look beyond technology solutions that secure systems and communications. It is important that the human factors are considered like employee training and creating an incident management plan to provide a full proof data security strategy.
Take a look at the full 2013 Ponemon Institute Data Breach report for more information on the top reasons that data breaches occurred and ways to decrease the risks and costs associated with them.
For information on how your company can build a better strategy to avoid data breaches, download our free white paper “Defending Against Data Breach: Developing The Right Strategy for Data Encryption.”