It’s not been the sort of record-breaking year any business wants to have. Nevertheless, as 2014 comes to a close, many disaster recovery and incident management professionals have begun to refer to it as “the year of the breach” thanks to the increasing number and costs of high-profile data breaches. Now is a great time to consider updating your disaster recovery systems.
Costs Escalate for Data Breaches
In the retail segment, costs associated with breaches more than doubled since last year according to a recent Ponemon Institute study. Retailers weren’t alone; in the past 12 months, businesses in the financial services, technology and communication sectors experienced breaches that cost, on average, $20.8 million, $14.5 million and $12.7 million respectively. The stark reality is that nearly every organization is at substantial risk prompting FBI director James Comey to quip, “There are two kinds of companies in the United States. There are those who’ve been hacked… and those who don’t know they’ve been hacked.”
Home Depot Hacked
When the Home Depot was hacked in September, 56 million credit cards and 53 million email addresses were taken. Home Depot claims it was a third-party vendor that left their network vulnerable to attack.
Lesson Learned: Your crisis management plans need to include suppliers and third-party vendors with which you do business.
JPMorgan Credit Card Hit
When details of a cyberattack on JPMorgan Chase, the largest U.S. bank, were released in October it became apparent that it was a significant hit, compromising 7 million businesses and 76 million households even though initial estimates stood at just 1 million. This breach rocked an industry that had previously felt relatively safe from online assaults.
Lesson Learned: As a result of the breach, JPMorgan plans to spend $250 million in 2015 on digital security—doubling its annual investment from 2014. Whether it’s time or money, every organization needs to make an investment to safeguard operations from data breaches in 2015.
Healthcare Companies a New Target
There has been an alarming increase in data breaches at healthcare companies, so alarming the FBI issued a federal law enforcement bulletin to healthcare industry companies warning of “malicious actors targeting healthcare-related systems.” Nearly 90 percent of healthcare companies surveyed in the last year suggested they had experienced a data breach in the last two years.
Lesson Learned: Although typically competitors, companies within the same industry would benefit from collaborating with others against a common threat, similar to the way the financial services industry shares safeguards and safety nets.
How to Use This Information
Businesses that fell victim to data breaches in 2014 learned valuable and costly lessons. Certainly one lesson for all, and one any organization in any industry can learn, is that it is critical to have a disaster recovery plan created and tools in place to help you execute that plan well before becoming a victim to a data breach. Please go online to schedule a demo of our capabilities or give us a call at 877-833-7763.
How can your organization learn from 2014’s record-setting year in number and cost of data breaches?