There is no shortage of major security breaches on the news anymore. Organizations of all sizes, industries and brand appeal are falling victim to sophisticated cybercriminals. JPMorgan appears to be the latest major business to suffer a cyberattack. In an SEC filing, the company indicated that 76 million customers and 7 million small businesses may have had their sensitive data exposed during the incident.
JPMorgan explained information such as email addresses, phone numbers, names and addresses could have been accessed in the breach.
"However, there is no evidence that account information for such affected customers - account numbers, passwords, user IDs, dates of birth or Social Security numbers - was compromised during this attack," the company said in the SEC filing.
Sears another major retail brand dealing with security fallout
Sears is another company that may have to clean up the mess of a potentially harmful breach. Krebs on Security recently reported Sears said point-of-sale systems at its Kmart stores were compromised by malware in September. The malicious software obtained credit and debit card information.
Chris Brathwaite, a spokesman for Sears, said the company's IT teams identified the attack had compromised the POS systems. "They immediately launched a full investigation working with a leading IT security firm. Our investigation so far indicates that the breach started in early September," he said, as quoted by the source.
A recent study by Javelin Strategy and Research on the effects of corporate data breaches found that 33% of consumers would be unwilling to return to a business that had a data breach. A prime example of a company suffering from a major security breach is retail giant, Target. Since the breach in late 2013, the corporation has suffered significant losses, with a 46% drop in profits immediately following the announcement.
In an August 2014 press release, Target revealed that breach-related expenses have cost them approximately $148 million year-to-date as well as an additional $285 million in pre-tax losses related to debt retirement costs, affecting shareholders and quite possibly the reason behind resignation of Gregg Steinhafel, 35 year president and CEO.
Get a hold on your IT security now
SMBs will not likely suffer from huge capital losses like those mentioned above; but even the most successful business can suffer debilitating consequences from a data breach. In addition to a loss of trust and client patronage, businesses affected will also have to deal with legal fees and fines for failing to adhere to compliance guidelines, delivering what can be an incapacitating financial blow.
To avoid potential data breaches, organizations need to keep their systems protected with the most up-to-date security options available. Additionally, to maintain effectiveness, it needs to be continuously monitored and updated to stay current on new and existing threats.
It is understandable that small to medium-sized businesses lack the budget and resources to keep their systems properly protected, which is why many have opted to partner with a Managed Services provider to handle the daunting task, and liability, of keeping their sensitive information secure.
Pinnacle, an Advanced Imaging Solutions company, is a managed IT services provider that helps clients with manage their network security. Keeping your business and client's sensitive information secure is only one of the many benefits of outsourcing your IT infrastructure to our dedicated System Engineers. To learn more about security solutions available or Managed IT Services, contact us today!