Security Spending in Focus as Cyber Crimes Mount – Analyst Blog

The days when major corporate crimes ravaged the coffers of industry biggies are long gone now. In the present hyper-connected world, organizations are threatened by rapidly spreading cyber attacks that spread beyond the corporate walls. With loss of huge customer data and with credibility at stake, firms are forced to shell out a major chunk of their income for scrutinizing and resolving the threat for cyber crimes.

In 2015, the average cost-digit of cyber attacks has reportedly escalated to $3.8 million – a considerable 8% and 23% higher than the respective tallies in 2014 and 2013. In particular, the average cost per compromised data in the U.S. has risen to $154. The loss of valuable data like healthcare and education records is costing the respective firms at a significantly higher level (around $300 – $363 each).The year 2014 witnessed some of the biggest data breaches in corporate history. Several giant firms confronted audacious attacks, with top-notch retailers and bankers being the prime targets.

After the daring and successful  cyber attack on discount store retailer , Target Corp.

TGT in Dec 2013, there was no looking back for the hackers. This was followed by the purported security breach on arts and crafts supply chain, The Michaels Companies, Inc.

MIK in April 2014. Other attacks on renowned retail chains included home improvement chain The Home Depot, Inc.

HD in September and office supply retailer Staples, Inc.

SPLS in October last year. In between the series of data breaches on U.S. retailers, the country’s largest bank, JPMorgan Chase & Co.JPM along with four other undisclosed banks fell prey to the hackers .

Needless to say, financial institutions holding enormous account information and retailers with vital plastic money details of customers are the ones facing a higher level of security threat. However, they are not the only sufferers!

Cyber criminals are now shifting their focus into the internal systems of healthcare and entertainment firms. Through June 2014 – March 2015, hackers from diverse geographies targeted electronic equipments supplier Sony Corporation

SNE , top health insurer Anthem , Inc. ANTM and hospital operator Community Health Systems, Inc.

and Google Inc. GOOG have not been spared either; with hackers seizing accounts for the U.S. military’s CENTCOM.  Security Spending – Call of the Moment

Citing the alarming rise in cyber crimes, Gartner and Forester Research expects global information security spending to escalate by about 8.2% to $76.9 billion in 2015.

With hackers getting stronger and data breaches notoriously rising in the U.S., spending in IT companies offering security has become the call of the moment. Cyber security breach is anticipated to rise at a greater speed in 2015 and beyond. Mastermind hackers, especially of Asian countries like China, Japan and UAE, are using innovative ways to penetrate into the systems of the Americas corporate world.

The U.S. federal government has also taken a step forward to aid these corporate giants in protecting their valuable and confidential data from the hackers. Concerned by the string of attacks, the U.S. President, Barack Obama promised expending about $14 billion for cyber security in his latest budget proposal.

Some Concrete Steps – A Critical Insight

Several diverse organizations across various nations, realizing the sheer importance of security spending, have collaborated with cyber-security providers to protect their systems from illicit groups. In addition, many cyber-security firms are now coming up with advanced solutions to combat hackers.

For instance, the Singapore Government and Mizuho Bank of Japan has approached security services provider VASCO Data Security International Inc.

VDSI, among others for its online security solutions. VASCO also recently unveiled a range of innovative data security solutions for protecting vast data roster of healthcare operators. Another cyber-security supplier firm, Check Point Software Technologies Ltd. CHKP

, have launched supervisory control and data acquisitions (‘SCADA’) security solution to shield Industrial Control Systems against cyber-attack woes.

Alongside, federal companies are sealing their systems by taking aid from national security programs provider ManTech International Corporation

MANT

. Of late, U.S. Air Force, U.S. Department of Defense Information Analysis Center and U.S. Army Contracting Command-Aberdeen have sought assistance from ManTech in offering security to their crucial online system.

Moving Forward

In a nutshell, the time is ripe for global giants to make security spending their main agenda to avoid “the Wall of Shame” and losing customer faith. Indeed, Obama rightfully remarked in the State Of The Union Address – “…. we need to better meet the evolving threat of cyber-attacks, combat identity theft, and protect our children’s information. If we don’t act, we’ll leave our nation and our economy vulnerable. If we do, we can continue to protect the technologies that have unleashed untold opportunities for people around the globe “.

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