Data breaches have become a major problem area for all of us around the world - businesses and individuals alike. Breaches, these days, are not limited to just one or two organizations, they are spreading like wildfire across an uncountable number of organizations. RiskRecon and Cyentia Institute published a report that analyzes these multi-party breaches and some shocking statistics have come to light.
What’s the report say?
The research group analyzed 897 multi-party breaches, since 2008, associated with three or more interconnected organizations.
- The past three years witnessed 108 ripples or multi-party breaches.
- The financial damage incurred from the worst ripple events is 26 times more than a single-party breach.
- A ripple event took 379 days to affect 75% of its downstream victims.
- On average, a multi-party breach caused 10 times the financial damage of a conventional data breach.
The impact
- While most events involved only four businesses, the financial impacts outweighed single-breach counterparts.
- Every incident caused the loss of personal data of millions and financial and business support organizations were the most affected (47%).
- A small fraction of ripples caused around 78% loss of income, while 80% of these incidents resulted in direct financial damage.
Why this matters
These statistics imply that no business is immune to a multi-party breach. As organizations permit third parties to access their employee details and customer information, they open up a path for breaches and other incidents.
The bottom line
While an organization cannot entirely protect itself from risks posed by third parties, it can take steps to minimize those risks. One of the key examples of ripple events is the SolarWinds attack that displays how damaging the effects of a multi-party breach can be. Therefore, keep your devices and software safe and secure.
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