Skip to content
Advertisements

Posts tagged ‘enterprise security’

IBM’s 2018 Data Breach Study Shows Why We’re In A Zero Trust World Now

  • Digital businesses that lost less than 1% of their customers due to a data breach incurred a cost of $2.8M, and if 4% or more were lost the cost soared to $6M.
  • U.S. based breaches are the most expensive globally, costing on average $7.91M with the highest global notification cost as well, $740,000.
  • A typical data breach costs a company $3.86M, up 6.4% from $3.62M last year.
  • Digital businesses that have security automation can minimize the costs of breaches by $1.55M versus those businesses who are not ($2.88M versus $4.43M).
  • 48% of all breaches are initiated by malicious or criminal attacks.
  • Mean-time-to-identify (MTTI) a breach is 197 days, and the mean-time-to-contain (MTTC) is 69 days.

These and many other insights into the escalating costs of security breaches are from the 2018 Cost of a Data Breach Study sponsored by IBM Security with research independently conducted by Ponemon Institute LLC. The report is downloadable here (PDF, 47 pp. no opt-in).

The study is based on interviews with more than 2,200 compliance, data protection and IT professionals from 477 companies located in 15 countries and regions globally who have experienced a data breach in the last 12 months. This is the first year the use of Internet of Things (IoT) technologies and security automation are included in the study. The study also defines mega breaches as those involving over 1 million records and costing $40M or more. Please see pages 5, 6 and 7 of the study for specifics on the methodology.

The report is a quick read and the data provided is fascinating. One can’t help but reflect on how legacy security technologies designed to protect digital businesses decades ago isn’t keeping up with the scale, speed and sophistication of today’s breach attempts. The most common threat surface attacked is compromised privileged credential access. 81% of all breaches exploit identity according to an excellent study from Centrify and Dow Jones Customer Intelligence, CEO Disconnect is Weakening Cybersecurity (31 pp, PDF, opt-in).

The bottom line from the IBM, Centrify and many other studies is that we’re in a Zero Trust Security (ZTS) world now and the sooner a digital business can excel at it, the more protected they will be from security threats. ZTS begins with Next-Gen Access (NGA) by recognizing that every employee’s identity is the new security perimeter for any digital business.

Key takeaways from the study include the following:

  • U.S. based breaches are the most expensive globally, costing on average $7.91M, more than double the global average of $3.86M. Nations in the Middle East have the second-most expensive breaches globally, averaging $5.31M, followed by Canada, where the average breach costs a digital business $4.74M. Globally a breach costs a digital business $3.86M this year, up from $3.62M last year. With the costs of breaches escalating so quickly and the cost of a breach in the U.S. leading all nations and outdistancing the global average 2X, it’s time for more digital businesses to consider a Zero Trust Security strategy. See Forrester Principal Analyst Chase Cunningham’s recent blog post What ZTX Means For Vendors And Users, from the Forrester Research blog for where to get started.

  • The number of breached records is soaring in the U.S., the 3rd leading nation of breached records, 6,850 records above the global average. The Ponemon Institute found that the average size of a data breach increased 2.2% this year, with the U.S. leading all nations in breached records. It now takes an average of 266 days to identify and contain a breach (Mean-time-to-identify (MTTI) a breach is 197 days and the mean-time-to-contain (MTTC) is 69 days), so more digital businesses in the Middle East, India, and the U.S. should consider reorienting their security strategies to a Zero Trust Security Model.

  • French and U.S. digital businesses pay a heavy price in customer churn when a breach happens, among the highest in the world. The following graphic compares abnormally high customer churn rates, the size of the data breach, average total cost, and per capita costs by country.

  • U.S. companies lead the world in lost business caused by a security breach with $4.2M lost per incident, over $2M more than digital businesses from the Middle East. Ponemon found that U.S. digitally-based businesses pay an exceptionally high cost for customer churn caused by a data breaches. Factors contributing to the high cost of lost business include abnormally high turnover of customers, the high costs of acquiring new customers in the U.S., loss of brand reputation and goodwill. U.S. customers also have a myriad of competitive options and their loyalty is more difficult to preserve. The study finds that thanks to current notification laws, customers have a greater awareness of data breaches and have higher expectations regarding how the companies they are loyal to will protect customer records and data.

Conclusion

The IBM study foreshadows an increasing level of speed, scale, and sophistication when it comes to how breaches are orchestrated. With the average breach globally costing $4.36M and breach costs and lost customer revenue soaring in the U.S,. it’s clear we’re living in a world where Zero Trust should be the new mandate.

Zero Trust Security starts with Next-Gen Access to secure every endpoint and attack surface a digital business relies on for daily operations, and limit access and privilege to protect the “keys to the kingdom,” which gives hackers the most leverage. Security software providers including Centrify are applying advanced analytics and machine learning to thwart breaches and many other forms of attacks that seek to exploit weak credentials and too much privilege. Zero Trust is a proven way to stay at parity or ahead of escalating threats.

Advertisements

How Zero Trust Security Fuels New Business Growth

Bottom Line: Zero Trust Security (ZTS) strategies enabled by Next-Gen Access (NGA) are indispensable for assuring uninterrupted digital business growth, and are proving to be a scalable security framework for streamlining onboarding and systems access for sales channels, partners, patients, and customers of fast-growing businesses.

The era of Zero Trust Security is here, accelerated by NGA solutions and driven by the needs of digital businesses for security strategies that can keep up with the rapidly expanding perimeters of their businesses. Internet of Things (IoT) networks and the sensors that comprise them are proliferating network endpoints and extending the perimeters of growing businesses quickly.

Inherent in the DNA of Next-Gen Access is the ability to verify the user, validate the device (including any sensor connected to an IoT network), limit access and privilege, then learn and adapt using machine learning techniques to streamline the user experience while granting access to approved accounts and resources. Many digital businesses today rely on IoT-based networks to connect with suppliers, channels, service providers and customers and gain valuable data they use to grow their businesses. Next-Gen Access solutions including those from Centrify are enabling Zero Trust Security strategies that scale to secure the perimeters of growing businesses without interrupting growth.

How Zero Trust Security Fuels New Business Growth  

The greater the complexity, scale and growth potential of any new digital business, the more critical NGA becomes for enabling ZTS to scale and protect its expanding perimeters. One of the most valuable ways NGA enables ZTS is using machine learning to learn and adapt to users’ system access behaviors continuously. Insights gained from NGA strengthen ZTS frameworks, enabling them to make the following contributions to new business growth:

  1. Zero Trust Security prevents data breaches that cripple new digital business models and ventures just beginning to scale and grow. Verifying, validating, learning and adapting to every user’s access attempts and then quantifying their behavior in a risk score is at the core of Next-Gen Access’ DNA. The risk scores quantify the relative levels of trust for each system user and determine what, if any, additional authentication is needed before access is granted to requested resources. Risk scores are continuously updated with every access attempt, making authentication less intrusive over time while greatly reducing compromised credential attacks.
  2. Securing the expanding endpoints and perimeters of a digital business using NGA frees IT and senior management up to focus more on growing the business. In any growing digital business, there’s an exponential increase in the number of endpoints being created, rapidly expanding the global perimeter of the business. The greater the number of endpoints and the broader the perimeter, the more revenue potential there is. Relying on Next-Gen Access to scale ZTS across all endpoints saves valuable IT time that can be dedicated to direct revenue-producing projects and initiatives. And by relying on NGA as the trust engine that enables ZTS, senior management will have far fewer security-related emergencies, interruptions, and special projects and can dedicate more time to growing the business. A ZTS framework also centralizes security management across a digital business, alleviating the costly, time-consuming task of continually installing patches and updates.
  3. Zero Trust Security is enabling digital businesses globally to meet and exceed General Data Protection Regulation (GDPR) compliance requirements while protecting and growing their most valuable asset: customer trust. Every week brings new announcements of security breaches at many of the world’s most well-known companies. Quick stats on users affected, potential dollar loss to the company and the all-too-common 800 numbers for credit bureaus seem to be in every press release. What’s missing is the incalculable, unquantifiable cost of lost customer value and the millions of hours customers waste trying to avert financial chaos. In response to the need for greater oversight of how organizations respond to breaches and manage data security, the European Union (EU) launched General Data Protection Regulation (GDPR) which goes into effect May 25, 2018. GDPR applies not only European organizations, but also to foreign businesses that offer goods or services in the European Union (EU) or monitor the behavior of individuals in the EU. The compliance directive also states that organizations need to process data so in a way that “ensures appropriate security of the personal data, using appropriate technical and organizational measures,” taking into account “state of the art and the costs of implementation.”

Using an NGA approach that includes risk-based multi-factor authentication (MFA) to evaluate every login combined with the least privilege approach across an entire organization is a first step towards excelling at GDPR compliance. Zero Trust Security provides every organization needing to comply with GDPR a solid roadmap of how to meet and exceed the initiative’s requirements and grow customer trust as a result.

Conclusion

Next-Gen Access enables Zero Trust Security strategies to scale and flex as a growing business expands. In the fastest growing businesses, endpoints are proliferating as new customers are gained, and suppliers are brought onboard. NGA ensures growth continues uninterrupted, helping to thwart comprised credential attacks, which make up 81% of all hacking-related data breaches, according to Verizon.

%d bloggers like this: