Customer Relationship Management News NewsFactor Sites:     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...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note
Business Briefing
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Shoring Up Cybersecurity Tied to Bottom-Line Losses
Shoring Up Cybersecurity Tied to Bottom-Line Losses

By Steve Johnson
May 27, 2014 7:02AM

Bookmark and Share
Like many individuals, businesses often balk at the cost of cybersecurity, figuring it's not worth the benefit. But that approach can wind up backfiring, as in the case of Target, whose data breach has cost it close to $1 billion. Experts warn that data security and privacy should be a huge consideration for businesses, not an afterthought.

Despite a torrent of high-profile data breaches -- most recently at eBay -- many security experts fear businesses and consumers will continue doing little to bolster their protections against cybercrooks until they feel it in their pocketbooks.

[eBay] revealed that a database containing customers' names, passwords, phone numbers, dates of birth, email and home addresses was compromised. But as with most other recent hacks, eBay said it had no evidence anyone's money was stolen. And that -- ironically -- is the problem.

Unless such attacks result in widespread financial losses, experts say, the threat won't be taken seriously.

"Until it hits them at home, it won't matter much," said Scott Goldman, CEO of security firm TextPower, based in San Juan Capistrano. "The very fact that people are becoming numb to the constant stream of breaches indicates the pathetic level of security provided by most online services."

Like many individuals, businesses often balk at the cost of cybersecurity, figuring it's not worth the benefit.

"Most companies are focused on revenues and profits; unfortunately, security doesn't drive either of those two priorities," said Eric Chiu, president of Mountain View security company HyTrust. "Instead, they view investment in security as insurance which they can put off until something bad happens, which is too late."

The problem with that approach, he added, is that it can wind up backfiring.

"As we have seen from Target," he said, referring to the retailer's disclosure in January that thieves stole payment card and other information from at least 40 million of its customers, "the potential costs of not putting customer data as a top priority are brand damage, loss of customer trust and ultimately major business impact."

Target's breach reportedly has cost it close to $1 billion and prompted the May 5 resignation of its CEO.

To bolster customer security, Target has said it plans to spend $100 million to adopt so-called chip-and-PIN payment cards that are harder for crooks to counterfeit and use. Other retailers reportedly are considering doing the same, though researchers warn that the advanced cards also have vulnerabilities.

"Less than halfway through 2014 and we're already beginning to lose count of the number of big-name companies fallen victim to attacks like this," said Alan Kessler, CEO of San Jose security company Vormetric.

Besides Target, U.S. authorities on Monday charged five Chinese military officials with hacking into U.S. corporations to steal trade secrets.

And in April they said they were investigating the criminal sale of Social Security numbers, bank account data and other personal information for up to 200 million U.S. citizens, after a breach at Court Ventures, a Southern California subsidiary of credit-reporting giant Experian. Moreover, the recently discovered Heartbleed bug has endangered data on innumerable websites. (continued...)

1  |  2  |  Next Page >


© 2014 San Jose Mercury News (CA) under contract with NewsEdge. All rights reserved.

Tell Us What You Think



Posted: 2014-05-30 @ 8:59am PT
@C.G.: Thanks for the correction. We have fixed the spelling of Mr. Kessler's last name.


Posted: 2014-05-30 @ 8:26am PT
friendly correction - Alan KESSLER is the CEO of Vormetric


Posted: 2014-05-28 @ 8:18am PT
It's too bad that the focus is on the bottom line and not on the protection of the consumers who are the lifeblood of the business.

 Business Briefing
1.   FTC Wants Fix for Mobile Cramming
2.   T-Mobile Calls 'BS' on AT&T Promo
3.   U.S. Firms Fish for Growth Overseas
4.   Zillow Buys Trulia for $3.5 Billion
5.   Competition Spurs Ultra-Fast Internet

Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:

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

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.

Mobile Technology Spotlight
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.

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.