Security breach cost $3.8 million

Security breach cost averages $3.8 million

Security breach cost – Cybersecurity threats are on the rise. In 2015 the average cost of a data breach was $3.79 million, and that figure is expected to grow to close to $5 million by the end of this year.

Security RisksAreas of concern are:

  • Cloud Services – danger that they’re bypassing security protocols and systems in the process
  • Ransomware – Kits for this software are now readily availalbe. The attack encrypts important files, rendering data inaccessible until you pay the ransom.
  • Spear phishing – Phishing attacks are growing more sophisticated all the time, as official-looking messages and websites, or communications that apparently come from trusted sources, are employed to gain access to your systems.
  • Known vulnerabilities – Once these are published everyone is exposed
  • Internet of Things – As connectivity spreads into every corner of our lives and businesses, it becomes more and more challenging to maintain a clear view of entry points and data flow.

Order Security Manual Download Selected Pages

The top 10 drivers of security shortcomings include:

  1. Insufficient funding for security
  2. Lack of commitment by senior executive management
  3. Lack of leadership in the security arena by the CIO
  4. Belief that the organization will not be targeted
  5. Lack of internal resources who are “security” experts
  6. Lack of an effective IT security strategy
  7. Lack of an action plan on how to implement a solution before an event
  8. Infrastructure for IT that does not easily lend itself to security implementation including complex and disjointed applications and data
  9. No central focus with the enterprise that focuses on security
  10. Lack of a good termination policy for employees and contractors

Author: Victor Janulaitis

M. Victor Janulaitis is the CEO of Janco Associates. He has taught at the USC Graduate School of Business, been a guest lecturer at the UCLA's Anderson School of Business, a Graduate School at Harvard University, and several other universities in various programs.