Data Breach Costs Reach Galactic Proportions

The Target breach could cost more than $1 billion!

There is no single solution to the challenge facing retailers!

This isn’t a joke….

According to John Kindervag, the vice president and principal analyst with Forrester Research, “I don’t see how they’re getting out of this for under a billion, over time,” he said, adding, “$150 million in a quarter seems almost like a bargain.” The New York Times, August 5, 2014

And Costs in the US are among the highest in the world!

Based on an independent study conducted by Ponemon Institute, consolidated findings show that malicious or criminal attacks are the most costly data breaches incidents in all nine countries. US and German companies experience the most expensive data breach incidents at $277 and $214 per compromised records, respectively.

Protect your data. Protect your customers. Protect your brand. Protect your job.Credit-Card-with-Chains-and-Lock-01-1024x854

Data security is the most important issue facing retailers today. One of the foundational principles of security is to take a layered approach. An integrated approach of combining Tokenization, EMV, and Network Segmentation is the best way to reduce a company’s risk. Anything less than all three leaves a company at the top of the target list for criminals.

Remember the intangible Costs when prioritizing your security initiatives

That’s obvious, but not everyone realizes the indirect effect data breaches have beyond the tangible costs. The impact on customer perceptions and purchase behaviors for brands that have highly publicized breaches have significant costs that could potentially exceed the tangible costs. Oh, and by the way, don’t forget that many breaches result in “key” individuals getting fired!

When evaluating and implementing changes in this rapidly changing area rely on industry experts to assist in the development of short-term and long-term designs.

Senior Vice President & Practice Lead
Perry is a leader in retail information technology, with more than 20 years of extensive experience across several types of retailers, including department stores and specialty retailers. In addition to VP and leadership positions with retailers, he has held the CIO position with a technology company and was co-chairman of the Association for Retail Technology Standards (ARTS) board of directors. Throughout his career, he has managed selection and implementation projects within store systems, logistics, finance, HCM, e-commerce and merchandising.

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