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According to recent research, U.S. business leaders may be misguided in their understanding of the significant impacts of a data breach. The 2016 Shred-it Security Tracker survey by Ipsos revealed that only 36 percent of U.S C-Suite respondents recognize lost or stolen data would have a serious impact on their organization and over a third (34 percent) of Small Business Owners (SBO's) believe a data breach would have no significant impact on their business.
In comparison, the survey found 52 percent of global respondents from six countries understand that lost or stolen data would have a significant impact on their organization, with 24 percent recognizing it would damage the organization's credibility and reputation.
Underestimating the potential financial and reputational implications of a data breach can lead to business leaders deprioritizing information security and decreasing their investment in protecting their information. When you consider the average number of breached records containing sensitive and confidential information in 2016 was 29,611,1 and average cost for each lost or stolen record increased from $217 in 2015 to $221 in 20162, in reality a single data breach can cause significant financial damage.
"In addition to being financially ruinous a data breach can erode a business' public reputation and the confidence of customers," says Kevin Pollack, Senior Vice President, Shred-it. "Understanding the impacts of fraud, identifying organizational vulnerabilities and putting in place proper measures for data protection is one of the most valuable investments you can make to protect your business from the significant financial, legal and reputational damage that a data breach can cause."
International Fraud Awareness Week is led by the world's largest anti-fraud organization, The Association of Certified Fraud Examiners (ACFE), which aims to reduce business fraud worldwide as well as inspiring public confidence in the integrity and objectivity within the fraud protection industry. As part of the week, Shred-it has provided a quiz on their website where businesses will be able to evaluate their fraud risk knowledge. This will help business leaders gain a better understanding of areas where improvements are needed to ensure their information security protocols and procedures are protecting themselves against the costly impact of a data breach. The quiz will generate a 'fraud profile' based on their responses, with questions focusing on policies and procedures, employee behaviour and office security.
Understanding the impact of fraud risk is the first step in developing a comprehensive approach to protecting valuable information. Take the Fraud Risk Quiz today to test your company's attentiveness and care to mitigating information security threats.
Shred-it is a world-leading information security company providing information destruction services that ensure the security and integrity of our clients' private information. A wholly owned subsidiary of Stericycle, Shred-it operates in 170 markets throughout 18 countries worldwide, servicing more than 400,000 global, national and local businesses. For more information, please visit www.shredit.com.
1 Ponemon 2016 Cost of a Data Breach Study: US Page 1
2 Ponemon 2016 Cost of a Data Breach Study: US Page 1