Cygilant Blog

What Has Been the Impact of Data Breaches in 2016?

Posted by Shawn O'Brien on Dec 1, 2016

Data breaches have had a large impact on businesses in 2016.
Data breaches have had a large impact on businesses in 2016.

Data breaches are major events that place tremendous pressure on IT departments to rectify. Unfortunately, numerous case studies exist where companies have not only failed to prevent a cyber attack, but they've also struggled (at minimum) to mitigate the damage. The end result is often lost customers and a dented bottom line.

"Data breaches are increasing because there are more connected devices than ever."

Why are Data Breaches on the Rise?

One reason data breaches are increasing is because there are more connected devices than ever. And that number is expected to rise.

Gartner predicted connected "things" would jump 30% between 2015 and 2016. Other experts agreed, such as Fortinet Global Security strategist Derek Manky and Morgan Stanley Chief Information Officer of Technology and Information Risk Matthew Chung.

Manky explained to CNBC that the vast amount of connected devices is an advantage for attackers who have access to a lot of information in numerous areas.

"That's a very large playground for attackers, and consumer and corporate information is swimming in that playground," Manky said. He noted that many of these devices don't put security first, leaving them open to an IT attack. "A lot of these products and services, oftentimes security will take a backseat, so it puts a lot of information at risk."

At a SIFMA annual conference, Chung said that IT security issues will only become worse, according to Wealth Management.

"Unfortunately the landscape of cyber risk is deteriorating, it's worsening. This year, 2015 was a tough year, 2016 stands to be an even tougher year," Chung said.

What Has Been the Financial Impact?

As you might expect, the financial implications of these cyber attacks have been tremendous - and scary. According to the Ponemon Institute 2016 Cost of Data Breach Study, the total cost of a data breach was $4 million per year. The average per capita cost of a data breach was $158, an increase from the $154 figure noted just a year ago.

Companies that want to reduce their financial risk by signing up for cyber insurance plans (yes, they exist) might find them hard to come by. Business Insider noted that some insurance providers are fearful of handing out these plans because of the large number of attacks and the high costs associated with them.

What does this mean?

Many companies are on their own, and need to do more to improve their IT security efforts if they want to protect critical data. As Manky and Chung pointed out, attacks are happening because more and more devices are connecting to the internet, and not enough companies are putting IT security ahead of cool, unique features that drive sales.

How You Can Gain Peace of Mind

EiQ offers two SOCVue® hybrid security-as-a-service solutions that can help organizations of any size affordably and effectively improve their cybersecurity and compliance posture:

  • SOCVue Security Monitoring gives you visibility and control over your IT environment. You’ll get best-of-breed Log Management and SIEM that is managed around-the-clock for real-time threat detection, analysis and notification, proactive remediation guidance, and compliance auditing.
  • SOCVue Vulnerability Management reduces your attack surface and mitigates risk with unlimited managed scans, analysis, risk prioritization, and remediation guidance. Focus on what matters most: your core business.

EiQ’s SOCVue combine the best people, process, and technology to build the enterprise-class IT security program your organization needs. That’s because SOCVue gives you the flexibility and cost savings of a security software-as-a-service offering, but also provides a world-class team of security and technology experts to manage the technology and help implement cybersecurity best practices.

With all the challenges you face today while trying to keep your organization safe, having the best IT security solutions in your corner should not be one of them. Request a demo today to see how quickly and affordably you can improve your security and compliance posture with EiQ.

Request Free Demo Now!

Tags: Data Security, Cybercrime, Cyber Attack, Data Breach, Hacking

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