Significant Rise in Data Breaches Reported
Data breaches increased 49 per cent in 2014 to 1 billion data records compromised, with cybercriminals targeting identity theft as top breach category
Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, releases the latest findings of the Breach Level Index, revealing that more than 1,500 data breaches led to one billion data records compromised worldwide during 2014. These numbers represent a 49% increase in data breaches and a 78% increase in data records that were either stolen or lost compared to 2013.
Continuing with this industry-leading benchmarking from SafeNet following its acquisition by Gemalto, the Breach Level Index (BLI) is a global database of data breaches as they happen and provides a methodology for security professionals to score the severity of breaches and see where they rank among publicly disclosed breaches. The BLI calculates the severity of data breaches across multiple dimensions based on breach disclosure information.
Identity Theft Dominates Breach Motivations
According to data in the BLI originally developed by SafeNet, the main motivation for cybercriminals in 2014 was identity theft with 54% of the all data breaches being identity theft-based, more than any breach category including access to financial data. In addition, identity theft breaches also accounted for one-third of the most severe data breaches categorised by the BLI as either Catastrophic (with a BLI score of between 9.0 and 10) or Severe (7.0 to 8.9). Secure breaches, which involved breaches of perimeter security where compromised data was encrypted in full or in part, increased to 4% from 1%.
Regional and Organizational Breach Highlights
The UK came in second place behind the US with the most data breaches worldwide in 2014. The organisations who suffered the biggest breaches in the UK included Mumsnet Ltd, where 1.5m records were breached, Axa Insurance, Harley Medical Group and Moonpig, where 3.5m records were breached. Aside from the Moonpig hack, which occurred as a result of unintentionally lost data, these breaches occurred because of malicious outsiders.
“We’re clearly seeing a shift in the tactics of cybercriminals, with long-term identity theft becoming more of a goal than the immediacy of stealing a credit card number,” said Jason Hart, VP Cloud Services, Identity and Data Protection at Gemalto. “Identity theft could lead to the opening of new fraudulent credit accounts, creating false identities for criminal enterprises, or a host of other serious crimes. As data breaches become more personal, we’re starting to see that the universe of risk exposure for the average person is expanding.”
Shift in Breach Severity and Tactics
In addition to the shift towards identity theft, breaches also became more severe last year with two-thirds of the 50 most severe breaches, according to their BLI score, having occurred in 2014. Also, the number of data breaches involving more than 100 million compromised data records doubled compared to 2013.
Industry Trends in 2014 Data Breaches
In terms of industries, retail and financial services experienced the most noticeable trends compared to other industry sectors in 2014. Retail experienced a slight increase in data breaches compared to last year, accounting for 11% of all data breaches in 2014. However, in terms of data records compromised, the retail industry saw its share increase to 55% compared to 29% last year due to an increased number of attacks that targeted point-of-sale systems. For the Financial Services sector, the number of data breaches remained relatively flat year over year, but the average number of records lost per breach increased ten-fold to 1.1 million from 112,000.
“Not only are data breach numbers rising, but the breaches are becoming more severe,” added Hart. “Being breached is not a question of ‘if’ but ‘when.’ Breach prevention and threat monitoring can only go so far and do not always keep the cyber criminals out. Companies need to adopt a data-centric view of digital threats starting with better identity and access control techniques such as multi-factor authentication and the use of encryption and key management to secure sensitive data. That way, if the data is stolen it is useless to the thieves.”
Through its acquisition of SafeNet, Gemalto offers one of the most complete portfolios of enterprise security solutions in the world, enabling its customers to enjoy industry-leading protection of digital identities, transactions, payments and data – from the edge to the core. Gemalto’s complete portfolio of SafeNet Identity and Data Protection solutions enable enterprises across many verticals, including major financial institutions and governments, to take a data-centric approach to security by utilising innovative encryption methods, best-in-class crypto management techniques, and strong authentication and identity management solutions to protect what matters, where it matters. Through these solutions, Gemalto helps organisations achieve compliance with stringent data privacy regulations and ensure that sensitive corporate assets, customer information, and digital transactions are safe from exposure and manipulation in order to protect customer trust in an increasingly digital world.
