Study reveals one billion data records compromised in 2014

AMSTERDAM, NETHERLANDS: Gemalto has today released the latest findings of the 2015 Data Security Confidence Index (DSCI). The report reveals a widening gap emerging between the perception and the reality of perimeter security effectiveness amongst global IT decision makers.

The research shows increasing levels of investment in this area of data protection, despite an exponential growth in the number of data breaches.

Investments in Breach Prevention Rise Despite Increased Breaches of Perimeter Security.

The number of global data breaches continues to increase - according to Gemalto's Breach Level Index (BLI), more than 1,500 data breaches led to one billion data records compromised in 2014 alone, a 49 percent increase in data breaches and a 78 percent 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 percent 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 percent, highlighting the need for a more robust data protection strategy.

Low Confidence in Ability to Prevent Breaches and Unauthorized User Access

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 DSCI survey reveals that as a result of recent high profile breaches, 71 percent of organizations have adjusted their security strategy, but are still focused on perimeter security.

"With the number of sophisticated breaches on the rise, relying on perimeter security systems alone is no longer enough. Traditional security staples such as firewalls and anti-virus should be part of a much greater security strategy. IT decision makers need to take into account that if someone is motivated enough they will breach a network, no matter how well it is protected," said Tsion Gonen, vice president of strategy for Identity and Data Protection at Gemalto.

Commercial Impacts of Data Breaches

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%).

This highlights the severe consequences of data breaches, which can be damaging both to an organization's reputation and bottom line, as well as to customers' confidence in entire industry sectors.