Data breach rising!

first_imgWhat You Need to Know About a Number One Risk to Your BusinessExecutive SummaryData breach has become an epidemic in the U.S., and the financial services sector is the hardest hit, with over 500 million consumer records compromised in the last 12 months.Threats are coming more frequently from other countries and are becoming more sophisticated and prevalent, yet many organizations are just now investigating breach response protocols and vendor solutions. The choices are many and some solutions leave gaping holes which can add up to additional expense, brand damage, and legal exposure. Now is the time for thoughtful planning and timely execution – before a data breach strikes your organization.In this paper, we discuss the current realities of data breach exposure, ways that compromised information is being exploited, and simple steps companies can take to protect themselves prior to and following a data breach incident.The Cost of Data Breach to Financial InstitutionsThe cost of responding to a data breach in the U.S. is the highest anywhere in the world. According to the Ponemon Institute’s 2014 Annual Cost of Data Breach Study, an organization who has made no plans ahead of the incident may expect to spend an average of $201 per breached record compromised. Breached organizations also report that it takes one to two years on average to recover their company’s reputation, brand, and profits following a data breach.In addition to the high cost associated with a data breach response and lost profits, banks and credit unions must also absorb losses associated with debit and credit card fraud, account takeover, and loan fraud. Even if the data breach occurs outside their walls, financial institutions bear the cost of changing account numbers, reissuing cards, and calming consumer fears.On top of the billions in fraud losses and data breach response expenses, our nation’s financial institutions spend more than $80 billion per year on IT development in an attempt to stay one step ahead of the threat. The fastest growing cost to financial institutions is the loss of consumer confidence in the financial system itself—demonstrated by a 2014 survey in which Americans ranked having their credit or debit card information stolen by hackers as their biggest fear, ranking higher than home burglary, car theft, or having a child physically harmed while at school. As a result, credit and debit card usage at retail stores across the nation is dropping, translating into shrinking profits for financial institutions. 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Sally King Sally King is a nationally recognized authority on identity theft and an experienced business consultant with over 30 years in financial institution, insurance, and securities management. For the last nine … Web: www.nxgstrategies.com Detailslast_img

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