The latest identity theft statistics released by the Identity Theft Resource Center documented 662 data breaches* in the United States in 2010. The message couldn’t be more clear:
Corporations are not yet taking identity theft and data breach seriously enough to properly train their employees, executives, and board on the BOTTOM-LINE DESTRUCTION caused by data breach.
Sure, at this point, many organizations pay lip service to data crimes. They have a privacy policy and their marketing materials state that they do everything in their power to protect your private information. Everything, that is, unless it costs them money to do so. Many corporations tend to hide behind the excuse that in these lean times, they can’t afford to take any additional security steps. But they must understand the disproportionate costs of recovering from theft rather than preventing it. In the simplest of terms, the ROI on data theft prevention training can easily be a thousand-fold. Each record lost, according to the Ponemon Institute, costs, on average, $204 to recover. Lose 1000 records (considered a very small breach), and you are suddenly out $204,000! According to the same study, the average cost for a business to recover from a data breach is $6.75 Million. The average cost to implement identity theft, social engineering and data breach training? In most cases, less than $50,000.
Posted in Fraud Detection & Prevention, Identity Theft Prevention by Identity Theft Speaker John Sileo.
Tags: Corporate Identity Theft, Data Breach, Data Breach Prevention, Data Breach Statistics, identity theft expert, Identity Theft Prevention, Identity Theft Statistics 2010, Identity Theft Statsitics, ITRC, John Sileo, Statistics
Thanks to SmallBusinessComputing.com and Jennifer Schiff for this article!
In August 2010, the Privacy Rights Clearinghouse published its latest Chronology of Data Breaches, which showed that since 2005 more than a half-billion sensitive records have been breached. Of those breached records — which contained such sensitive data as customer credit card or social security numbers — approximately one-fifth came from retailers, merchants and other types of non-financial, non-insurance-related businesses, the majority of which were small to midsized.
An equally scary statistic: approximately 80 percent of small businesses that experience a data breach go bankrupt or suffer severe financial losses within two years of a security breach, according to John Sileo, a professional identity theft consultant and speaker, who knows firsthand about the havoc a security breach can wreak on a small business.
Posted in Fraud Detection & Prevention by Identity Theft Speaker John Sileo.
Tags: Business Identity Theft, Data Breach, Data Breach Expert, Data Breach Statistics, Identity Theft Speaker, Identity Theft Statistics, John Sileo, small business, Small Business Computing
