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From mega breaches in the spring to new federal regulations, including the HIPAA Omnibus Rule, in the fall, 2013 had plenty of newsworthy moments related to cyber security and data loss. What will the New Year bring?
In a new white paper, Michael Bruemmer, Vice President of Experian® Data Breach Resolution, looks ahead and identifies coming trends in breach prevention, preparedness and response. Excerpted from the white paper, here are six projections for 2014:
1. Lower – But Still Significant – Costs
Greater awareness of breach risks and better preparation may continue to drive down costs. However, at a cost per record of $188, down from $194,1 a big breach will still result in substantial losses for an organization, meaning the need for preparation will remain.
2. Incidents on an International Scale
With EU regulations taking shape and data on cloud services reachable from anywhere in the world, the era of global response efforts has arrived. Look for more organizations to seek out privacy attorneys who work in foreign jurisdictions.
3. Continuing Healthcare Woes
The new Health Insurance Exchanges will create exponentially more healthcare data that, if mishandled, could become vulnerable. Plus, under the HIPAA Omnibus Rule, more incidents will qualify as breaches in 2014.
4. A Boom in Cyber Insurance
The interest in cyber insurance policies is only expected to grow as data loss incidents continue to rise. Currently, one-third of companies are covered, and another 39 percent are planning to purchase policies, according to one recent study.2
5. Consumers Tune out Breaches, Put Themselves at Risk
The more that breaches occur, the more breach fatigue spreads, and the harder companies have to work to reach affected individuals. A multifaceted approach that includes notification letters, a microsite with FAQs and other outreach efforts should become more commonplace. Otherwise companies run the risk of consumers tuning out and, by ignoring the breach, putting themselves in greater danger.
6. Open Communications with Officials
A national breach law isn’t expected to pass in 2014. However, government involvement in setting expectations for response procedures has been growing and will likely continue. Look for state attorney generals, the FBI and the National Institute of Standards and Technology to get more involved in protecting consumers.
1 2013 Cost of a Data Breach Study: Global Analysis, Ponemon Institute (May 2013)
2 Managing Cyber Security as a Business Risk: Cyber Insurance in the Digital Age, Ponemon Institute (August 2013)