What is the real risk if my company doesn’t have Network Security in place?

Monica Morris • Apr 13, 2016

Network Security Breaches on the Rise

It seems that you can’t see a news story without reading about some kind of data breach or other failures in network security.  In fact, according to the Identity Theft Resource Center, 2015 saw the second highest number of data breaches since they started keeping records.  Business and Health and Medical combined were victim to over 75% of the breaches.

Most recently, Hollywood Presbyterian Medical Center in Los Angeles was hacked and the electronic medical records were held hostage for 40 bitcoins, approximately $17,000. Adam Kujawa from Malware Bytes was quoted in the Time as saying “Unfortunately, a lot of companies don’t tell anybody if they had fallen victim to ransomware and especially if they have paid the criminals,”… “I know from the experiences I hear about from various industry professionals that it’s a pretty common practice to just hand over the cash.”

The Cost of an Internet Security Breach

In the case of Presbyterian Medical, the cost of their failed internet security is fairly easy to quantify, 40 bitcoins or $17,000, not counting the soft costs of the time and loss of productivity.  Presbyterian Medial reverted to hand written records while the issue was being resolved.  That meant fewer patients seen and less revenue generated.  Although only the hospital knows the actual costs good money says it is significantly more than $17,000 and the potential cost was much higher.

Some reports indicated the hospital could not access digital diagnostic equipment.  It is unclear if any lives were at immediate risk but it isn’t difficult to come up with a scenario where a life may be lost or a patient’s quality of life may be seriously impacted.  In either case, although the moral responsibility would be with the hacker or hackers, legal and financial responsibility may vest in the hospital.  Especially if it is proven that the breach of their web security was the result of gross negligence on the part of the hospital.

There are also addition costs to consider besides potential loss of life and the monetary loss associated with the extortion.  By not having proper internet security in place the hospital may be subject to regulatory fines.  HIPAA breaches can be costly.  In 2014 NY Presbyterian Hospital in a joint venture with Columbia University were fined $4,800,000 after a breach.

Exposure is not limited to either the medical field or large businesses.  According to Kaspersky Lab Survey of 5,500 businesses worldwide over 90% experienced some kind of data breach with 46% of them losing sensitive information.  The cost for enterprise businesses was $551,000 in direct cost and an additional $69,000 in indirect costs.  Small businesses didn’t fare any better relative to their size.  Direct costs for small businesses per breach was $38,000 with another $8,000 in indirect costs.  Proportionately the small business is impacted significantly more than the enterprise.

Breakdown of potential cost for poor information security

Hard Cost

  • Ransome Cost (in the case of ransomeware) – the price you pay to the perpetrators to release your network
  • Remediation Cost – the cost you pay a security professional to restore your network
  • Regulatory Cost – fines by governmental bodies for failure to protect sensitive data (HIPAA, Sarbanes-Oxley, etc)
  • Legal Costs – settlements and attorney’s fees in the case of civil action

Soft Cost

  • Loss of Productivity
  • Loss of customer goodwill
  • Loss of customers

Clearly businesses are at risk and internet security should be top of mind for all business owners but is that sufficient?   Network security is much more comprehensive then protecting against network hacks.  A comprehensive network security plan needs to include internet security, information security as well as physical security.  In the coming weeks we will discuss the how to determine which security measure you need and which ones are optional for your business and then how to choose the right solution for your company.

Fort Wayne Indiana downtown
05 Jan, 2024
In an era where digital transformation is at its peak, businesses are increasingly vulnerable to cyber threats in Fort Wayne, Indiana. With cybercriminals becoming more sophisticated, local companies must avoid these threats to safeguard their digital assets. As cybersecurity experts, SDTEK is dedicated to helping Fort Wayne businesses fortify their defenses against these ever-evolving threats. Understanding the Cyber Threat Landscape in Fort Wayne Like many thriving urban areas, Fort Wayne is home to a diverse range of businesses. The variety of enterprises here makes the city a vibrant economic hub, from bustling tech startups to established manufacturing companies. However, this diversity also makes the area a target for cybercriminals. The most common threats include phishing attacks, ransomware, data breaches, and malware. Small and medium-sized businesses (SMBs) are particularly vulnerable, often due to limited IT security resources. Recognizing these threats is the first step in building an effective defense strategy. Why Cybersecurity Matters More Than Ever for Local Businesses The consequences of cyber attacks can be devastating. They can lead to financial loss, damage to reputation, and legal implications if customer data is compromised. In today's interconnected world, the fallout from a security breach can extend far beyond the immediate damage, impacting customer trust and business continuity. Tailored Cybersecurity Strategies for Fort Wayne Businesses At SDTEK, we understand that there is no one-size-fits-all solution to cybersecurity. This is why we offer customized security strategies that cater to the specific needs of Fort Wayne businesses. Our approach includes: Risk Assessment: Evaluate your business's particular risks, considering factors unique to your industry and operational model. Employee Training: Empowering your staff with knowledge and best practices to recognize and prevent potential cyber threats. Implementing Robust Security Measures: This includes firewalls, anti-virus software, and secure Wi-Fi networks tailored to your business's specific needs. Regular Monitoring and Updates: Continuously monitor for threats and keep your security systems up-to-date to combat new and emerging threats. Best Practices for Cyber Hygiene In addition to tailored strategies, there are general best practices that every business in Fort Wayne can implement: Regularly update software and systems to patch vulnerabilities. Use strong, unique passwords and consider multi-factor authentication. Regularly back up data and store it securely. Establish a clear policy for handling sensitive data. Collaboration and Continuous Learning Cybersecurity is not a one-time effort but a continuous process. Collaboration between businesses and cybersecurity experts like SDTEK is crucial. We encourage Fort Wayne businesses to engage in local cybersecurity forums and workshops to stay informed about the latest threats and defenses. Conclusion In Fort Wayne, staying ahead of cyber threats is essential for the longevity and success of your business. By understanding the risks, implementing tailored strategies, and practicing good cyber hygiene, local businesses can significantly reduce their vulnerability to cyber-attacks. At SDTEK, we are committed to partnering with you in this journey, providing the expertise and support you need to protect your digital assets and thrive in a digital-first world. For more insights and assistance on cybersecurity solutions tailored for your Fort Wayne business, contact SDTEK . Your digital safety is our priority.
06 Dec, 2023
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