A number of recent high-profile data breaches, which follow a rash of attacks on companies including Target Corp. (NYSE: TGT), Neiman Marcus Group Ltd., and P.F. Chang's China Bistro (Nasdaq: PFCB), have turned the spotlight on the growing threat of cyberattacks and need for increased cybersecurity investment.
In the first three months of 2014, 254 data breaches occurred, resulting in more than 200 million data records lost or stolen. That's a whopping 233% year-over-year increase, according to data security company SafeNet.
Data records were lost or stolen in Q1 at an alarming rate of 70 million every month, 2 million every day, and 93,000 every hour.
Those are some scary statistics and only represent reported breaches.
Many data hacks are never reported. Some go undetected by victimized companies and organizations. Other aren't reported because the stolen data is not sensitive enough that it requires notifying affected customers.
Moreover, among hacks disclosed earlier this year, 46% of breaches didn't report how many records were lost or stolen, according to Maryland-based SafeNet.
The healthcare sector topped data breaches in Q1, with 24% of breaches. Hacks at financial services firms, technology companies, and government agencies followed, all with 14%. Retail was next with 10%.
That's why companies will be spending more than ever on cybersecurity in coming years.
Indeed, a report from market intelligence firm IDC and the National University of Singapore forecasts global enterprises will spend some $500 billion this year to fight data breaches.
Here's a look at the biggest recent cyberattacks...
Recent Breaches Show It's Time for More Cybersecurity Investment
Home Depot Inc. (NYSE: HD) is investigating a possible security breach of its customers' data.
The home improvement retail giant said Tuesday it is "looking into some unusual activity" in collaboration with its banking partners and law enforcement officials. "If we confirm that a breach has occurred, we will make sure customers are notified immediately," the company said in a statement.
According to new information released Wednesday by security website Krebs on Security, customer data could have been stolen from nearly all of Home Depot's more than 2,200 U.S. stores.
The fourth-largest U.S. retailer by revenue, Home Depot hasn't yet confirmed nor denied the breach. But it said it's offering free identity protection services, including credit monitoring, to customers who might be potentially hurt by the possible breach.
The company said it has been working around the clock since it first learned of "suspicious" activity that hinted at a breach. HD has hired leading security firms Symantec Corp. (Nasdaq: SYMC) and FishNet Security to help it investigate a possible cyberattack.
Home Depot stressed that in the event of a breach, customers will not be responsible for any possible fraudulent credit card charges. Home Depot, or the financial institution that issued the card, are responsible. Home Depot also encouraged customers to vigilantly monitor their accounts and quickly notify their card issuer of any unusual activity.
Apple Inc. (Nasdaq: AAPL) released an update last Tuesday on its investigation into the latest celebrity photo-hacking scandal. The iPhone maker said its engineers believe the incident did not occur through a breach of Apple's systems, including iCloud or its Find my iPhone app.
"When we learned of the theft, we were outraged and immediately mobilized Apple's engineers to discover the source," the company said in a statement. Following an exhaustive 40 hours of investigations, Apple said, "we have discovered that certain celebrity accounts were compromised by a very targeted attack on user names, passwords, and security questions, a practice that has become all too common on the Internet."
"None of the cases we have investigated has resulted from any breach in any of Apple's systems," the statement said.
The tech behemoth continues to work with law enforcement to help identify the criminals behind the attack.
To protect against similar breaches, Apple said all iCloud users should protect their account with a strong password and two-step verification process. Instructions can be found on Apple's website.
JP Morgan Chase & Co. (NYSE: JPM) discovered a major data breach in its systems in late August.
Hackers who have been traced to a Russian city unleashed malicious programs designed to penetrate the corporate network and infrastructure of the largest U.S. bank by assets. Security experts say the attack appears to be "far beyond the capability of ordinary hackers."
JPM did not reveal what may have been compromised and only said in a statement that, "Companies of our size unfortunately experience cyberattacks nearly every day. We have multiple layers of defense to counteract any threats and constantly monitor fraud levels."
Investigators are still not certain whether the hackers have been removed from the bank's network and are attempting to determine what, if any, information was taken. The process could take months, according to reports.
It was originally believed that as many as five large U.S. banks were attacked. But officials say JPM was the sole mark. The targeted attack on JPM likely stems from an incidence this spring.
In April, Russian officials reportedly singled out and criticized JPMorgan after the bank blocked a payment from the Russian embassy in Kazakhstan to insurance agency Sogaz "under the pretext of anti-Russian sanctions imposed by the United States." They called JPMorgan's move "unacceptable, illegal, and absurd."
Ironically, the attack on JPM came just two months after the bank pledged to boost cybersecurity spending this year by 25% to $250 million from 2013's level.
JP Morgan said it will contact any customers who may have been affected and urged customers who see suspicious activity to contact the bank. Customers won't be liable for fraud related to the attack, JPM added.
Next: Companies are projected to spend a whopping $67 billion on information security in 2014, as the need for U.S. companies to protect against cyberattacks is greater than ever before. Here's how to invest in cybersecurity for maximum gains...
Related Articles:
- Krebs on Security: Data: Nearly All U.S. Home Depot Stores Hit