Despite Spending Millions – Enterprise Data Breaches are at All Time Highs

Despite Spending Millions – Enterprise Data Breaches are at All Time Highs

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The average U.S. corporation spends $15 million a year on security products and services to battle cybercrime, yet malware infections and data breaches are still occurring at an unprecedented rate.

We’ve all seen the constant drumbeat of data breach headlines. This week it’s been the Yahoo attack that’s getting most of the attention. Believed to be one of the biggest ever, the company recently disclosed that at least 500 million user accounts were stolen. 

Yahoo of course isn’t alone with regards to large data breaches. Myspace had 360 million records stolen, LinkedIn lost 167 million records, 145 million records were stolen from eBay, 130 million from Heartland. The list goes on and on.

It’s not just the size of these data breaches that’s so alarming. It’s also the rising costs associated with a data breach and the frequency in which they are happening. IBM recently completed a study[1] showing that the average cost of a data breach has grown to $4 million dollars, a 29% increase over the last 2 years. The study also found that the number and frequency of cyber security incidents are at all-time highs, with data breaches increasing by a staggering 64% during 2015.

What’s amazing is that all of these data breaches are happening in spite of corporations spending millions of dollars to prevent them. According to CSO Online[2] the average U.S. corporation of 1,000 employees or more spends $15 million a year on security products and services to battle cybercrime. That’s an enormous cost since these same entities are still being infected with malware and experiencing data breaches at an unprecedented rate.

Unfortunately, many IT managers concede that their companies are likely to become victims of a data breach despite extensive investments in security. According to a recent Global Information Security Survey performed by EY, 56% of all organizations reported that their security systems would be unable to detect a sophisticated malware attack. The reality is that even the latest firewalls, IPS, and first-generation sandbox appliances are no match for sophisticated and evasive malware or related attacks. 

Relying on more and more of the same old technologies is obviously not working. That time worn saying “keep doing what you’re doing and you’ll end up where you’re going” is unfortunately a good description of how security is being played out at most corporations, and it’s not a pretty picture.

Fortunately, there are new game-changing technologies that can significantly reduce the possibility of malware infiltrating your corporate infrastructure and they are even designed to operate effectively with the existing investments that have been made in Enterprise Security solutions.  Lastline’s re-invention of the advanced malware detection platform is one such game-changer. Based on a totally new approach to detecting evasive malware, Lastline has been proven to detect and thwart even the most sophisticated and evasive malware that other solutions consistently miss.

We don’t have to keep repeating the same old, failing approach.  The too-often repeated cliché attributed to Einstein is just too hard to resist repeating again here: “The definition of insanity is doing something over and over again and expecting a different result.”

Click here to learn more about the Lastline solution.

[1] IBM & Ponemon Institute Study,  2016 Cost of a Data Breach, June 15 2016
[2] CSO Online, Average Business Spends $15 Million Battling Cybercrime, Oct 6 2015

Bert Rankin

Bert Rankin

Bert Rankin has been leading technology innovation for over 25 years including over 5 years in security solutions that prevent cybercrime. He is a frequent blogger and is often quoted in security-related articles. Bert earned his BA from Harvard University and an MBA at Stanford University.
Bert Rankin