14 Oct 2011

Data breaches cost businesses a lot of money

A new article from Marketwatch says that with cybercrime on the rise, the costs to business have increased as well. Businesses worried about data breaches should increase their internet security efforts as soon as possible.

According to the Digital Forensics Association's new study titled The Leaking Vault- Six Years of Data Breaches, U.S. businesses have reported 3,765 security breaches costing more than $156 billion in the last six years. The report said that 48 percent of the data breaches was from hackers.

“Government needs to provide clear federal safe-harbor rules that allow companies to report intrusions without draconian legal or fine consequences as long as the company immediately reports intrusions and cooperates with law enforcement,” Phil Lieberman of Los Angeles-based Lieberman Software told Marketwatch. “There also needs to be clear guidance as to what is 'reasonable care' with respect to the responsibility of companies to protect their infrastructure.”

The Leaking Vault report said that 65 percent of internet security breaches included the subject's name, address and Social Security Number being revealed. The report said this could cause the most harm of any exposed records.