Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Network Security
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Cloud Could Triple Odds of $20M Data Breach

Cloud Could Triple Odds of $20M Data Breach
By Linda Rosencrance

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

IT and security professionals surveyed by Ponemon Institute for Netskope believe that every 1 percent increase in the use of cloud services will result in a 3 percent higher probability of a data breach, so a firm using 100 cloud services would only need to add 25 more to increase the odds of a data breach by 75 percent, say Ponemon and Netskope.
 


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.



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.


 Network Security
1.   UPS Stores Hit by Data Breach
2.   Target Data Breach Cost: $148 Million
3.   Aruba Handles Black Hat with Aplomb
4.   Chinese Hackers Steal Patient Data
5.   FBI Cybersquad To Add Agents


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
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.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
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.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM 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.