Why is Cybersecurity Important?

Why is Cybersecurity Important?

The importance of cybersecurity

  • Communicate data breaches
  • Appoint a data-protection officer
  • Require user consent to process information
  • Anonymize data for privacy
  • The requirement to notify those affect as soon as possible
  • Let the government know as soon as possible
  • Pay some sort of fine

Why is cybercrime increasing?

  • The distributed nature of the Internet
  • The ability for cybercriminals to attack targets outside their jurisdiction making policing extremely difficult
  • Increasing profitability and ease of commerce on the dark web

What is the impact of cybercrime?

  • Economic costs: Theft of intellectual property, corporate information, disruption in trading and the cost of repairing damaged systems
  • Reputational costs: Loss of consumer trust, loss of current and future customers to competitors and poor media coverage
  • Regulatory costs: GDPR and other data breach laws mean that your organization could suffer from regulatory fines or sanctions as a result of cybercrimes

How to protect your organization against cybercrime

  1. Educate all levels of your organization about the risks of social engineering and common social engineering scams like phishing emails and typosquatting
  2. Invest in tools that limit information loss, monitor yourthird-party riskandfourth-party vendor risk and continuously scan for data exposure and leak credentials
  3. Use technology to reduce costs like automatically sending out vendor assessment questionnaires as part of an overall cyber security risk assessment strategy

Examples of damages to companies affected by cyber attacks and data breaches

  • Equifax: The Equifax cybercrime identity theft event affected approximately 145.5 million U.S. consumers along with 400,000–44 million British residents and 19,000 Canadian residents. Equifax shares dropped 13% in early trading the day after the breach and numerous lawsuits were filed against Equifax as a result of the breach. Not to mention the reputational damage that Equifax suffered. On July 22 2019, Equifax agreed to a settlement with the FTC which included a $300 million fund for victim compensation, $175m for states and territories in the agreement and $100 million in fines.
  • eBay: Between February and March 2014, eBay was the victim of a breach of encrypted passwords, which resulted in asking all of its 145 million users to reset their password. Attackers used a small set of employee credentials to access this trove of user data. The stolen information included encrypted passwords and other personal information, including names, e-mail addresses, physical addresses, phone numbers and dates of birth. The breach was disclosed in May 2014, after a month-long investigation by eBay.
  • Adult Friend Finder: In October 2016, hackers collected 20 years of data on six databases that included names, email addresses and passwords for The FriendFinder Network. The FriendFinder Network includes websites like Adult Friend Finder, Penthouse.com, Cams.com, iCams.com and Stripshow.com. Most of the passwords were protected only by the weak SHA-1 hashing algorithm, which meant that 99% of them had been cracked by the time LeakedSource.com published its analysis of the entire data set on November 14.
  • Yahoo: Yahoo disclosed that a breach in August 2013 by a group of hackers had compromised 1 billion accounts. In this instance, security questions and answers were also compromised, increasing the risk of identity theft. The breach was first reported by Yahoo on December 14, 2016, and forced all affected users to change passwords, and to reenter any unencrypted security questions and answers to make them encrypted in the future. However, by October of 2017, Yahoo changed the estimate to 3 billion user accounts. An investigation revealed that users’ passwords in clear text, payment card data and bank information were not stolen. Nonetheless, this remains one of the largest data breaches of this type in history.

How UpGuard can improve your cybersecurity

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https://www.upguard.com — UpGuard combines third-party security ratings, vendor questionnaires, and threat intelligence in a single cyber risk solution.