IT Health Check / Assessment

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    Preventation is better than Recovery!

    UK firms could face up to £122bn in data breach fines in 2018

    According to a UK government 2015 information security breaches survey, 90% of large organisations and 74% of SMEs reported a security breach, leading to an estimated total of £1.4bn in regulatory fines. In 2018, the European Union’s General Data Protection Regulation (GDPR) will introduce fines for groups of companies of to €20m or 4% of annual worldwide turnover, whichever is greater – far exceeding the current maximum of £500,000.

    This means that if data breaches remain at 2015 levels, the fines paid to the European regulator could see a near 90-fold increase, from £1.4bn in 2015 to £122bn, the PCI SSC calculated, based on the maximum fine of 4% of global turnover.

    Concerningly, the Cyber Security Breaches Survey 2016 showed some serious and growing areas of concern including;

    24% of all businesses have experienced one or more cyber security breaches in the last 12 months. As the size of a firm increases, so too does the incidence of breaches, with two-thirds (65%) of large firms having faced a breach over this period. Breaches are also more common among administration or real estate firms (39%).

    Certain sectors more typically experienced certain types of breaches:

    • Administration or real estate firms were more likely to suffer viruses, spyware or malware (77%, versus 68% overall). They were also more likely to have money stolen electronically (26% versus 13%) and via fraudulent emails or websites (18% versus 6%).
    • Information, communications or utility firms were more likely to have breaches relating to personally owned devices (19% versus 8%). This is potentially linked to the fact that bringing your own device (BYOD) is more prevalent in this sector.
    • Businesses in the financial or insurance sectors were more likely to suffer from impersonation in emails or online (60% versus 32%).

    Related Material and Further Reading

    From: Security Magazine, writtn by Oscar Marquez
    Published: 26 July 2016
    Article: The Costs and Risks of a Security Breach for Small Businesses

    From:Department for Culture, Media & Sport and Ed Vaizey MP
    First published:
    Part of:Cyber security
    Press Release: Two thirds of large UK businesses hit by cyber breach or attach in past year

    From:Department for Culture, Media & Sport and Ed Vaizey MP
    First published:
    Part of:Cyber security
    Research and analysis: Cyber Security Breaches Survey 2016