ME organisations face $1m loss due to data breaches; Gemalto

Report revealed 100% of Middle East organisations surveyed experienced a breach within the last five years

Tags: Cyber crimeGemalto NV (www.gemalto.com/index.html)
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ME organisations face $1m loss due to data breaches; Gemalto Over the last five years, the Middle Eastern organisations surveyed have incurred a total financial loss of approximately $1,493,590 due to system perimeter breaches
By  Aasha Bodhani Published  June 8, 2016

Gemalto released its Data Security Confidence Index and discovered Middle East organisations have lost in excess $1m due to data breaches in the last five years.

Despite the increasing number of data breaches and more than 3.9bn data records worldwide being lost or stolen since 2013, organisations continue to believe that basic perimeter security technologies are effective against such crimes.

Of the 1,100 IT decision makers surveyed worldwide, 50 were based in the Middle East and of these respondents, 94% said their perimeter security systems (firewall, IDPS, AV, content filtering, anomaly detection) were effective at keeping unauthorised users out of their network. Despite this, 54% said they have suffered from a perimeter security system breach in the past 12 months.

Furthermore, 60% believe unauthorised users can access their network and 36% said unauthorised users could access their entire network, in the event of a data breach.

Over the last five years, the Middle Eastern organisations surveyed have incurred a total financial loss of approximately $1,493,590 due to system perimeter breaches.  Subsequently, the average cost of detecting and fixing these breaches was approximately $35,232,000.

Furthermore, organisations suffered from consequences such as delays in getting products and services to the market (56%); decreased customer confidence (38%) and the loss of a new or incremental business opportunity (32%). Despite these breaches, organisations continue to invest in perimeter security versus data protection.

Sebastien Pavie, regional director MENA, identity and data protection at Gemalto said: "This research shows that there is indeed a big divide between perception and reality when it comes to the effectiveness of perimeter security.

"The days of breach prevention are over, yet many IT organisations continue to rely on perimeter security as the foundation of their security strategies. The new reality is that IT professionals need to shift their mindset from breach prevention to breach acceptance and focus more on securing the breach by protecting the data itself and the users accessing the data."

According to the research findings, 58% of IT decision makers said they would adjust their strategies as a result of high profile data breaches and allocate more spending to data security (encryption, fraud detection and/or key management). A further 52% said they had increased spending on perimeter security and believe that their current investments are going to the right security technologies.

All organisations surveyed in the Middle East, all said that their organisations experienced a breach at some time over the past five years. This suggests that organisations have not made significant improvements in reducing the number of data breaches despite increased investments in perimeter security.

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