Firms too focused on perimiter security
The number of global data breaches continues to increase as more than 1,500 data breaches led to one billion data records compromised in 2014 alone, according to Gemalto's Breach Level Index.
This means a 49% increase in data breaches and a 78% increase in data records stolen or lost compared to 2013.
Despite this, the DSCI research shows that almost nine out of ten (87%) IT decision makers feel their organization's perimeter security systems are effective at keeping out unauthorized users.
The study shows that IT decision makers are looking to further increase their investment in perimeter security with 64% looking to do so in the next 12 months.
Interestingly, when thinking of the most recent breaches, the average amount of breached data protected by encryption was below 8%, highlighting the need for a more robust data protection strategy.
Nevertheless, a third (33%) believe unauthorized users are still able to access their networks and a further 34% are not confident in the security of their organization's data, should a breach occur.
In fact, the survey reveals that as a result of recent high profile breaches, 71% of organizations have adjusted their security strategy, but are still focused on perimeter security.
As a result of these attacks, nine out of 10 organizations (90%) suffered negative commercial consequences, including delays in product or service development (31%), decreased employee productivity (30%), decreased customer confidence (28%), and negative press (24%).
"Organizations still place too much emphasis on perimeter security, even though it has proven to be ineffective,” said Tsion Gonen, Vice President of Strategy for Identity and Data Protection at Gemalto.
"Decision makers need to attach security directly to the data itself using multi-factor authentication and data encryption, as well as securely managing encryption keys,” added Gonen. “That way, if the data is stolen, it is useless to the thief."
Telcos can pursue partnerships with Fintech providers to capitalize on the opportunity
The rise of fintech and the explosion of digital social media already blurs the traditional lines of corporate responsibility