Using the cloud? What are the chances of a data breach?
My previous two blogs, Pasword1” – You have more security issues than you thought, and The mind of a hacker, both address organizational security at the most basic level.
Along with this theme, I thought I would take a look at the impact of the cloud as a source of data breaches. Netscope, created an infographic that illustrates how your chances of data breach rise as cloud usage grows. Netscope calls this the cloud multiplier effect. A report, published in June, by Netscope and the Ponemon Institute, found that as cloud application usage increases, so does the chance of a data breach. But what they also did, was estimate the economic impact to the organization.
The three major contributors to the cloud multiplier effect are the rate of cloud adoption; the growth of mobile; and ease and speed of sharing through cloud applications. A shocking find was that IT underestimates cloud application usage by 90%! In the example used, if your organization has 100 cloud applications and added 25 in a 12 month period, you would increase the possibility of a data breach by 75%. Not good news for anyone.
Not to continue picking on IT, 36% of business critical applications are in the cloud, and IT isn’t aware of at least ½ of them. And finally, 30% of business information resides in the cloud, and IT has visibility into less than 1/3 of the information.
- Loss or theft of 100K customer records – $20.1M
- 11.8% chance of it happening in the next year
- Adjusted economic impact is $2.37M
- Theft of high value information – $11.8M
- 25.4% chance of it happening in the next year
- Adjusted economic impact is $2.99M
The probability of a data breach increases by 124% if the number of employee owned devices with access to cloud services increase by 50% over a 12 month period
The infographic is very interesting. It appears from a few of the statistics that cloud management should be a concern of any organization that uses the cloud. Based on the assumptions (fact?) that IT isn’t fully aware of the organizational use of the cloud, indicates that tools and technologies are needed that help manage the environment. The financial impact to the organization isn’t pocket change.