The 2014 Breach Level Index Report (here) shows that by all measures breaches were up significantly in 2014. Data breaches totaled 1,540, up 46% from the 1,056 in 2013. And records breached rose 78%, from ~575 million records to 1,023,108,267 records breached in 2014. The Ponemon Institute reached the same conclusion, calling 2014 the year of the mega breaches (see here).
The primary source of breaches did not change much – 55% from malicious outsiders in 2014 and 57% in 2013. In second was accidental loss at 25%. But the nature of breaches shifted (see here):
Many of the breaches in 2014 involved the theft or compromise of identifiable information, such as names, addresses and social security numbers. In comparison, many of the thefts of 2013 involved financial information such as credit card numbers.
The report concludes that breach prevention has failed:
It’s not a question if your network will be breached, the only question is when.
And that breach acceptance has to be part of any security strategy (including some security recommendations – see p 14).
Cyber Risk Insurance is an essential part of any IT security plan. Not only does it provide financial protection from malicious attacks, it also covers the impact of employee error. Coverages vary, but can be customized for a particular business. Your agent/broker, working with an expert in Cyber Risk Insurance, can assist you.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at hard to place accounts. Review our expectations here.