Tag Archives: KPMG

Twenty percent of data loss originates from within, report claims

December 1, 2010

A study by KPMG has found that a fifth of data loss incidents which occurred this year were a result of internal activity, rather than third party interference, which shows a significant rise compared to statistics gathered in 2009.

Three years ago this type of data loss was accountable for four per cent of the global total, with a total of 23 million people from around the world being impacted by insider activities resulting in data loss, between 2007 and 2010.

KPMG UK’s Malcolm Marshall, indicated that the economic downturn is thought to have played a part in the instigation of this rise in malicious behaviour. The value of data has not gone unnoticed and so unscrupulous employees are more likely to try and profit from exploiting this fact, according to Mr Marshall.

An alternative cause is highlighted in the report, with KPMG pointing out that perhaps third parties are more likely to try and recruit insiders to their causes now, because the security measures levelled against them by businesses are making it more difficult for them to steal data externally.

The targeting of healthcare services is on the rise with over 25 per cent of data loss or security breach incidents attributed to this sector in the first half of the year, impacting on the lives of close to four million people.

Twenty per cent of incidents were recorded by governmental departments, within which close to 40 per cent occurred as a result of third party activity.

Although insider exploitation is a growing area of concern, hacking is by far the most significant threat to businesses and public sector organisations, with nearly 250 million people suffering as a result of a hack during the past three years.

Hacking can be carried out for a number of reasons, with terrorism, intellectual property theft and monetary benefits all listed in the KPMG report.

Mr Marshall believes that the threat will only continue to increase as the years pass, with cyber attacks becoming more common and national security put at risk regularly.

Zurich Insurance apologises to customers for data loss

October 26, 2009

A major failure in backup security procedures has left the personal details of 51,000 UK citizens at large in the Southern Hemisphere for a period of over 12 months. The Swiss insurance group Zurich experienced the loss when a data tape was being transferred for storage in South Africa in 2008. It has taken a year for the loss to be discovered and the story has spread quickly because of the catastrophic volume of data involved.

On top of the UK customers exposed, over half a million South African clients of the insurance giant had personal details stored on the mislaid data tape. KPMG has been called in to assist in identifying the causal factors behind the loss.

Zurich’s European CEO Annette Court was quick to apologise to the affected customers in the UK and abroad, rightly denouncing the loss as an unacceptable blunder. Court also took the opportunity to reassure customers that Zurich is updating its storage and backup infrastructure in order to provide more effective security in the future. Since no details on this improvement programme have been forthcoming, it is likely that the newly discovered data loss has in fact been the catalyst for a comprehensive data protection upgrade programme within Zurich. Continue reading →

Data Loss will incur increased financial penalties

May 18, 2009

Data loss is increasing……

Last year KPMG reported the worst year for data loss since 2005. More worryingly if the same data loss trend continues, the number of cases of data loss globally could rise to over 190 million this year. However, if the ever threatening possibility of data loss isn�t alarming enough how about adding a large fine as a consequence.
It was revealed last week that The European Commission will pursue a new law that would require most businesses, agencies and organisations in Europe to notify consumers when they lose sensitive customer data. The United States and Japan have had such laws in place since 2003. While it isn�t compulsory for European countries, including Britain, to notify of data loss at present, some do so voluntarily. A company penalised for such a breach was Nationwide Building Society when:

�The British financial regulator in 2007 imposed a �980,000, or $1.5 million, fine on the mortgage lender Nationwide Building Society after an employee laptop with data on millions of customers was stolen.�

So how are organisations reacting to such data security threats?

Well businesses fully understand the negative reputation risk that a data loss incident may bring and are therefore decidedly interested in preventing such incidents. Businesses also realise the reputational risk of neglecting what is a strategic and fundamental business concern to protect data securely.
So what are the key areas to consider when updating and improving an organisation�s data security and methodology?

It is crucial to include senior management when creating a framework that supports strong corporate governance, assurance, confidentiality and data life-cycle management change. Another key consideration is educating employees and creating awareness in data protection and its importance.
There are 5 key questions an organisation should ask themselves to ensure they are using the best methods:

1.�Where does your data come from and what is it stored on?
2.�How is your data backed up?
3.�Is your data backup automated, offsite and encrypted?
4.�Do you have a clear disaster recovery plan of what to do should you lose data?
5.�Are senior management aware of realistic recovery times is the event of disaster?

If any of these questions can�t be answered with conviction then it�s of paramount importance to address your backup and recovery requirements with immediate effect.

Data loss to increase in 2009

January 16, 2009

A report from KPMG claims that 2009 will witness more data loss incidences than 2008. The consultancy firm stated that last year almost 92 million people were severely affected from data loss, making it the worst year on record to date.

The company also fears that due to the economic slowdown this number could rise to 190 million in 2009. KPMG�s Partner, Malcolm Marshall explained that several firms are going to face problems when it comes to website monitoring for data protection, as it is anticipated that IT budgets will drop significantly.

Marshall advised that it is important for businesses to determine where the data comes from, where the data gets stored, how the data is utilised and what should one do when data is lost. These questions can help to find answers which will help businesses both large and small with their preparations to combat and limit data loss. Such planning will also aid their growth and stability.

Data loss can be a serious problem for companies, making it vital to be cautious and alert. Online data backup services can help to retrieve lost data, which is why every company should utilise this facility.

Back up online to prevent data loss

November 19, 2008

Technology comes at a price and many have experienced it. Computers are everywhere with today�s work culture and huge amounts of valuable information are stored in computer hard disks and hard drives as digital data. This data may or may not be sensitive, but since a single computer can hold more information than an entire library, one cannot leave the safety of data to chance.

According to the Data Loss Barometer by KPMG, 1034 data loss incidents were reported between 2005 and June 2008 with over 280 million people having lost their data and other valuable information stored on conventional storage devices like CD�s, DVD�s etc. Most of this information was related to the public sector, there are a few more incidents expected in the private sector that have not been made public.
This highlights how susceptible to loss data is due to theft and robbery. A year�s hard work could be lost within a matter of seconds. Of course, there are the standard backup devices like CD�s, DVD�s etc. but these conventional storage devices are also vulnerable to physical damage and breakage.

All these problems can easily be prevented with online data backup. With online back up, you can now backup your data on the internet where data is no longer vulnerable to any physical damage. All that you need is a computer and an internet connection to get started and store your data safely.

Online data storage a must for every organisation

November 17, 2008

Losing valuable data is one of our worst nightmares. Many times people have lost their data, either due to a device malfunction or human error. Over the past few years data loss has been one of the biggest problems faced by many organisations.

As per a recent survey carried out by KPMG, the results were far more shocking. This survey revealed that more than 280 million people have been affected worldwide in the past three years. There have been a significant number of cases in the UK alone. Many of the private organisations as well as government organisations have lost their valuable data.

This survey also revealed that amongst the registered cases; 46% of people were not having a password protection or any kind of encryption.

Surprisingly, health care and education bodies topped in the list of vulnerable sectors, with financial services next worst. Up to June 2008, more than 1000 separate incidents have been reported.

Malcolm Marshall, a partner with KPMG, had recently commented on this report. He said that these data loss incidents pose serious threat to most organisations across every business sector. With such incidents the customer�s trust can be damaged very seriously. It also creates a bad impact on the brand reputation value.

By having online data backup and online data storage service, companies can easily avoid such incidents.