The True Cost Of A Data Breach And How You Can Protect Your Company’s Web Applications

The year of 2015 was the year of data breaches around the world, resulting in severe inconvenience for customers, alongside loss of thousands and millions of dollars for the companies and online retailers. However, according to Lean Security, an Australian based WAF managed service provider, this isn’t the true cost of a data breach. The risks of data breach are far reaching, with serious implications for businesses. It goes far beyond a few thousands of dollars. As the reputed company delves deeper into the details, here’s what they found out:

The Case-Study of Two Australian Retailers That Was Hacked and Lived To Tell the Tale 

The last week of October, in particular, will go down in the annals of digital history as the worst for security. First, Experian the globally placed credit checking agency reported the customer database theft from their primary business partner, T-Mobile. Within days of each other Australian retailers Kmart and David Jones both admitted a strong possibility of exploitation (of security vulnerability) by an unnamed third party in their IBM WebSphere-based websites.

In this particular instance, the attackers took off with customer names, email addresses, delivery and billing addresses, phone numbers and customers’ product purchase details. There are numerous companies that are attacked similarly on a global scale.     

The 2015 Cost of Data Breach Analysis by Ponemon Institute

IBM and the Ponemon Institute in the later part of 2015 issued a joint analysis report on the cost of data breaches. Over 350 companies (globally) were surveyed and the results were as follows: average cost of data breaches was steadily increasing (from $3.52m in 2014 to $3.79m in 2015), the cost per breached record also increased (from $145 to $154). In fact, since 2013 the average cost of data breaches have rose to 23%.

The study also featured other important findings that shed some light into the reasons behind the increased data breaches in 2015 and how online retailers and companies can make sure the same doesn’t happen in 2016. The following should be noted by companies planning their system’s security measures;

Ø  The frequency of cyber attacks, as well as the costs of re-mediating the consequences faced, have increased

Ø  Lost business resulting from data breaches have also increased; resulting from the damaged reputation of companies in the wake of a high profile data breach

How Can Companies Make Sure the Same Doesn’t Happen In 2016

In the wake of so many high profiled data breaches and instances of identity theft, the only solution can be seen in the shape of more secure information systems. Apart from undergoing web and mobile applications with penetration security testing, a reliable and professional managed security service should be responsible for providing security to web applications and more.

Lean Security is one such solutions provider that can effectively identify OWASP (both common and zero days) issues and fix them before hackers even learn about the vulnerability. Get to know more about how you can protect your online store from vulnerabilities by getting in touch with Lean Security.