A global data breach study by Gemalto provides valuable insights into data breaches reported over the first six months of 2017, showing there has been a significant increase in data breaches and the number of records exposed.
Barely a day has gone by without a report of a data breach in the media, so it will probably not come as a surprise to hear that data breaches have risen again in 2017. What is surprising is the scale of the increase. Compared to the first six months of 2016 – which saw huge numbers of data breaches reported – 2017 saw a 13% increase in incidents. However, it is the scale of those breaches that is shocking. 2017 saw 164% more records exposed than in 2016.
During the first six months of 2017, a staggering 918 data breaches were confirmed, resulting in 1.9 billion records and email credentials being exposed or stolen. Further, that figure is a conservative. According to Gemalto’s global data breach study, it is unknown how many records were compromised in 59.3% of data breaches between January and June 2017.
What is clear is the data breaches are increasing in size. Between January and the end of June, there were 22 breaches reported that each impacted more than 1 million individuals.
To put the global data breach study figures into perspective, more than 10.5 million records were exposed each day in the first half of 2017 – or 122 records per second.
What is the Biggest Cause of Data Breaches in the First Half of 2017?
While malicious insiders pose a significant threat, and caused 8% of breaches, accidental loss of devices or records accounted for 18% of incidents. But the biggest cause of data breaches was malicious outsiders, who caused 74% of all tracked data breaches.
However, in terms of the severity of breaches, it is accidental loss that tops the list. There many have only been 166/918 breaches due to accidental loss according to the global data breach study, but those incidents accounted for 86% of all records – That’s 1.6 billion.
Malicious outsiders may have caused the most breaches – 679/918 – but those breaches involved just 13% of the total number of records – 254 million. In the first half of 2016, malicious outsiders were the leading breach cause and data breaches and accounted for 76% of breached records.
It is worth noting that while malicious insiders were responsible for just 8% of incidents, those incidents saw 20 million records exposed. Compared to 2016, that’s a 4114% increase.
Which Regions Had the Most Data Breaches in the First Half of 2017?
While North America was the hardest hit, accounting for 88% of all reported breaches, that does not necessarily mean that most breaches are occurring in the United States. In the U.S. there are far stricter reporting requirements, and companies are forced to disclose data breaches.
In Europe, many companies choose not to announce data breaches. It will therefore be interesting to see how the figures change next year. From May 2018, there will be far stricter reporting requirements due to the introduction of the General Data Protection Regulation (GDPR). For this report, there were 49 reported breaches in Europe – 5% of the total. 40% of those breaches were in the United Kingdom. There were 47 breaches in the Asia Pacific region – 5% of the total – with 15 in India and the same percentage in Australia.
Which Industries Suffer the Most Data Breaches?
The worst affected industry was healthcare, accounting for 25% of all breaches. However, bear in mind that HIPAA requires healthcare organizations to report all breaches in the United States. The financial services industry was in second place with 14% of the total, followed by education with 13% of breaches. The retail industry recorded 12% of breaches, followed by the government on 10% and technology on 7%.
In terms of the number of records breached, it is ‘other industries’ that were the worst hit. Even though that group accounted for just 6% of breaches they resulted in the exposure of 71% of records. Government breaches accounted for 21% of the total, followed by technology (3%), education (2%), healthcare (2%) and social media firms (1%).
How Can These Breaches be Stopped?
In the most part, these data breaches occurred due to poor cybersecurity protections, basic security failures, poor internal security practices, and the failure to use data encryption. Previous research by PhishMe has shown that 91% of data breaches start with a phishing email. Anti-spam defenses are therefore critical in preventing data breaches. If phishing emails are prevented from being delivered, a large percentage of external attacks can be stopped.
Organizations that have yet to use two factor authentication should ensure that this basic security control is employed. Employees should receive cybersecurity awareness training, and training programs should be ongoing. In particular, employees should be trained how to identify phishing emails and the actions they should take when a suspicious email is encountered.
Accidental loss of data from lost and stolen devices can be prevented with the use of encryption, although most accidental losses were due to poorly configured databases. Organizations should pay particular attention to their databases and cloud instances, to make sure they are appropriately secured and cannot be accessed by unauthorized individuals.