News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
You are here: Home / Network Security / Cloud Triples Odds of $20M Breach
DDoS Protection Powered By Verisign
Cloud Could Triple Odds of $20M Data Breach
Cloud Could Triple Odds of $20M Data Breach
By Linda Rosencrance / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JUNE
05
2014

The news is not good: increased use of the cloud can triple a company’s chances of incurring a $20 million data breach. That’s according to research released on Wednesday by Ponemon Institute and cloud security firm Netskope.

The results of the study, “Data Breach: The Cloud Multiplier Effect,” indicate that IT and security professionals expect that moving their apps to the cloud will increase the potential that their companies will be hit by data breaches. And that means they’ll be on the hook for millions to clean up the mess.

Ponemon asked the 613 IT and security pros it surveyed in March to estimate the likelihood of a data breach involving 100,000 or more customer records at their organizations under current circumstances and how using more cloud services would change that probability. According to the report, an increased use of cloud services would triple the odds of a data breach.

Cost of a Data Breach

This report draws from Ponemon Institute’s May 2014 “Cost of a Data Breach” study that established a cost of $201.18 per lost or stolen customer record. So for a data breach involving 100,000 or more customer records the cost would be just over $20 million.

“Imagine then if the probability of that data breach were to triple simply because you increased your use of the cloud. That’s what enterprise IT folks are coming to grips with and they’ve started to recognize the need to align their security programs to account for it,” said Sanjay Beri, CEO and founder of Netskope.

Beri said that while there are many enterprise-ready apps available today, IT and security practictioners are worried about the damage from risky apps. “Rewriting this story requires contextual knowledge about how these apps are being used and an effective way of mitigating risk,” he added.

Vote of No Confidence

Across the board, the survey respondents said they believed that their corporate and customer data are less secure when the use of cloud services increases. Additionally, the IT and security professionals said their networks were running cloud services unknown to them; they were not aware of the security practices of their cloud service providers; and they believed that their organizations were not paying enough attention to deploying and monitoring security programs. What does that all mean? The general perception is that the probability of a data breach is increasing in today’s IT environment, according to the report. (continued...)

1  |  2  |  Next Page >

Tell Us What You Think
Comment:

Name:

Sym:

Posted: 2014-06-13 @ 8:01am PT
WittZi nails it. The benefits to cloud-based software far outweigh any cons and the fact is that there's no security related concerns to the cloud that don't apply to on premise solutions as well.

What this article should highlight instead is the need to hold third-party software to a higher security standard, and any cloud vendor your business leverages will fall into this category.

Chris Wysopal from Veracode explains this in a recent blog post here: http://blog.veracode.com/2014/06/cloud-or-not-third-party-software-adds-unnecessary-risk/

WittZi:

Posted: 2014-06-10 @ 1:55am PT
I think that this is the opionion of dinosaurs. Cloud hosting companies are often (note, almost certainly!) specialists at securing their infrastructure against attack, versus a (frquently) inept internal IT department that would admittedly struggle in a similar environment.

I dont have time to find the article, but if you look at cloud data breaches in 2012 vs internally hosted data breaches, the internal systems are breached significantly more frequently.

The study is based on people's views; people often with a vested interest to keep their systems in-house. I think that this is a very misleading study indeed.

James:

Posted: 2014-06-06 @ 3:49am PT
Interesting analysis, cyber crime is increasing and its time organizations adopt stronger measures to check security breaches. Regular checks on security systems and a requirements analysis should be a part of the business plan to check these threats. I work for McGladrey and there's a whitepaper on our website on cyber security which will interest readers . @ “Two common Web application attacks illustrate security concerns” @ http://bit.ly/1c0f35M

Kevin:

Posted: 2014-06-05 @ 1:46pm PT
Really? Keeping Data on someone else's computer, some American's computer, in the post Edward Snowden / NSA era?

Storage space is cheap people. Put a server in the basement, not in the cloud.

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN NETWORK SECURITY
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Are Government Spies Tipping Off Tor?
Less than a month ago, tech news headlines heralded a Tor Project breach. Now, some are saying that government spies are sharing information with Tor to help it prevent future breaches.
 
Backoff Malware Hits 1,000+ Businesses, Likely More
More than 1,000 businesses across the U.S. might have been affected by Backoff, a new kind of point-of-sale (PoS) malware, according to the Department of Homeland Security.
 
PlayStation Network Back Online After Attack
Sony’s PlayStation and Entertainment Network are back online after a distributed denial of service (DDoS) attack crashed the systems on Sunday. But Sony says no personal info was accessed.
 

Enterprise Hardware Spotlight
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 

Mobile Technology Spotlight
Verizon Hops on the Voice-Over-LTE Bandwagon
Wireless provider Verizon is gearing up for a nationwide launch of its Voice-over-LTE service over the next several weeks, promising clearer and crisper phone calls and a Skype-like video service.
 
Smartphone 'Kill Switch' Law in California; Will Other States Follow?
California’s new law -- signed by Gov. Jerry Brown on Monday -- aimed at deterring cellphone theft could mean most mobile phones sold in the U.S. will soon include similar “kill-switch” tech.
 
Apple To Replace 'Small Percentage' of iPhone 5 Batteries
If you've noticed your iPhone 5 isn't acting right, it might be because of a bad battery -- and you might be eligible for a replacement. Apple is offering new batteries, though only for a small percentage of users.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.