Tech Can Help Businesses Save $842M in Data Breach Fines

As society adapts to the new normal, opportunistic cybercriminals have been presented with a unique opportunity to steal sensitive data. Michael Rezek, VP Cybersecurity Strategy at Accedian discusses how granular visibility into network application performance can help organizations reduce data breach-related fines by approximately $842 million by 2024.

In today’s digitally driven world, the possibility of a data breachOpens a new window is a constant threat. Bad actors have plagued the internet for as long as it has existed, and as the internet matured, they came along for the ride, refining their tactics along the way. This opportunity-ability convergence has been evidenced during the onset of the COVID-19 pandemic. By inducing a rapid and unprecedented change in working habits and societal norms, cybercriminals have been presented with a unique opportunity to target both corporate and consumer data. They’ve capitalized on the fear and uncertainty of the pandemic, and as a result, COVID-19 related cyberattacks have soaredOpens a new window . 

In response to the proliferation of cybercrime, privacy regulations imposing high fines for data breaches have been enacted in several parts of the world, including Europe, Canada and several states across America. Countless companies have already been slapped with hefty settlement fines for breaking regulations (e.g. in the US, Equifax agreed to pay $149 million for its 2017 data breach, and Garmin reportedly paid hackers multimillion dollars for a ransomware attack; in Europe, British Airways and Marriott International both face hundreds of millions of euros in penalties for exposing customer data).

As opportunistic criminals continue to adapt to changing digital landscapes, organizations must live with the impending threat of a cyberattack, and consequently, the costly business and financial risks that come from being hacked. In order to better prepare for a data breach and minimize fines, businesses must rely on a strong technology stack that includes security enforcement tools, as well as software that provides enhanced visibility into network and application performance.

Learn More: Security and Speed, Two Opposing Priorities Can Co-Exist in DevOps

Gaining Granular Visibility into Networks

An effective network application performance management (NAPM) solution provides organizations with granular visibility into networks, ultimately allowing IT teams to see absolutely everything on the wire. The technology informs companies of the level of data exposed during a breach and enables them to address performance issues and reduce network downtime fines. And when combined with other traditional security measures, organizations are better prepared to combat hackers, detect issues immediately (no more of this 206-day average dwell time) and mitigate much of the costs of a breach. In fact, EMA’s Network Management Megatrends 2020 Report found that 97% of network teams are interested in using security capabilities provided by their network management vendors.

To examine NAPM’s impact on security and business ROI, Accedian and the Centre for Economics and Business Research (CEBR) conducted a study to measure the economic and business value of deploying NAPM technology. Based on the findings, NAPM adoption has the power to reduce data breach-related fines by approximately $842 million by 2024 across various industries.

Learn More: Know Your Company’s Enemy: 3 Different Types of Data Breaches

Minimizing Data Breach Related Fines by Sectors

Network Traffic Analysis (NTA) can inform businesses when a network was breached, as well as identify the types and amount of data exposed. This thereby empowers network, developer and IT teams to quickly assess the amount of damage done, and address performance and security issues before they get out of hand. 

However, certain sectors are more vulnerable to cyberattacks Opens a new window than others. Accedian’s research further broke down projected data breach-related cost savings as a result of NAPM adoption by industry. By 2024, the study found that: 

• Healthcare could save an estimated $314 million in fines. Healthcare data is highly confidential. The increasing availability of new and sensitive health information, such as biometric data, means criminals have plenty to steal. Unsurprisingly, the healthcare industry is positioned to benefit the most by investing in NAPM technology. 
• Finance and insurance could save up to $230 million in fines. Similar to healthcare, data in this sector is also heavily regulated, confidential, and highly prized by bad actors. That said, the industry has a long history of dealing with fraud, which gives it an advantage over the healthcare sector. 
• IT, telecoms, and information services could save approximately $157 million in fines. More and more, consumers are living their lives online and using multiple connected devices along the way. As a result, technology companies are handling an influx of personal data, which means this sector will continue to be a priority target for bad actors. 
• The government has the potential to save $103 million in fines. While government agencies at the federal, state and city levels handle a variety of sensitive information, this sector is positioned to benefit the least by investing in NAPM technology.

Learn More: How COVID-19 Transformed Data Privacy

Adapting Network Security for the New Normal

Even before the pandemic hit, there was a trend toward more connected devices and more data per device – making network and application visibility a critical part of securing networks. Because of COVID-19 and the subsequent remote work and social distancing requirements, this trend picked up exponentially. Businesses are now dealing with more devices from disparate locations and relying heavily on the cloud, while consumers are accessing goods and services online. This provides bad actors with conditions that are rife for exploitation. 

In order to survive in this new landscape, it’ll be important for organizations to protect critical assets and services. This means today’s CIOs and CISO’s will need to invest in a technology stack that provides traditional security measures, while also providing robust visibility into networks and the ever-growing number of assets that rely on it. By adding NAPM into technology stacks, organizations will be better equipped to address security threatsOpens a new window and mitigate the high costs of a breach.

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