Data Loss and the Financial Impact of It
Companies have always focused on protecting their data from outside threats. They have focused on everything from intrusion protection systems to vulnerability management. However, it is now time for companies to focus on data loss from another angle : data loss from the inside.
The Internet has created a hole in the security system and has provided a way for businesses and individuals to communicate with each other freely. Electronic communications can now go outside the company almost completely unmonitored through emails, instant messaging, file transfers, or links on websites. This free flow of information makes it very easy for important data to fall into the wrong hands.
The loss of data can happen either accidentally or deliberately and can include a number of different leaks of information ranging from the exposure of a customer's confidential information to thousands of a company's files being sent to their competitor. Regardless of the importance of it, data loss occurs any time employees, consultants, or other insiders release information that is supposed to be kept confidential.
According to a 2006 survey, approximately 49 percent of companies had experienced an internal security breach in the prior year. Of those companies, 31 percent had a worm or virus incident, 28 percent experienced insider fraud, and 18 percent of the companies experienced data leakage. The FBI has estimated that the total amount of data loss in 2006 has cost companies a total of $62.7 billion. Experts have furthered estimated that for a major company or corporation, one leakage will cost approximately $4.8 million.
There have been a number of high-profile incidents of data loss. Some examples are, when AOL posted information about its members in the search engine, a DuPont employee leaked $400 million worth of intellectual property, and a Ceridian employee accidentally posted the bank account information of 150 clients.
Data loss has the potential to compromise intellectual property and cause a company to violate their regulations. In fact, it is likely to be a threat to everything that a company has built. Companies cannot afford to ignore the serious threat that is posed by a loss of confidential information. In order for a company to protect the investment that it has placed in its brand, products, partnerships, and employees, they must address the issue of data loss and take proper precautions.
North Star Networks
Source: http://ezinearticles.com/
Added: March 18, 2008
Data amnesty launched after personal details lost by NHS - Scotsman
BBC News Data amnesty launched after personal details lost by NHS Scotsman, United Kingdom - By GARETH ROSE HEALTH chiefs have launched a data amnesty after one employee lost the personal information of about 137 patients. ... Health worker loses patient data Lothian NHS worker loses USB containing patient data Call for crackdown after NHS worker loses patients files -