Weekly News Roundup: August 9, 2013
Hackers and fraudsters dominated the news this week, as one of the year’s largest data breaches came to light at Harbor Freight Tools, another retailer beset with malware. Attacks on retailers ranked among the top two most common reasons for card-related fraud losses in the last 12 months, according to Information Security Media Group’s 2013 Faces of Fraud Survey, further underscoring the threat to this sector.
A second news article looks at the threat to New Zealand, where Mako’s corporate headquarters is based. A visiting security expert has again called into question the ability of the smaller businesses that make up the bulk of the nation’s economy to mount an adequate defense to sophisticated cyber criminals.
Lastly, a new survey has further quantified the potential damages from data breaches, finding that banks on average lose $9.4 million per incident. The study also found the market for cyber insurance to be on the rise.
Bank Info Security – New Retail Breach Among 2013’s Biggest? – A card data breach at all 400 Harbor Freight Tools stores may prove to be one of the most significant breaches of the year, similar in size to those at Schnuck’s supermarkets and Raley’s Family of Fine Stores. Hackers appear to have used malware to siphon card data from store payment processing systems.
The New Zealand Herald – NZ Slow to Respond to ‘Industrialised’ Hacking – New Zealand businesses have been slow to respond to the worldwide trend in automated cybersecurity attacks, says a US expert. Mark Kraynak, senior vice president of Imperva, said modern hacking tools meant cyber criminals can quickly and easily scan the internet for vulnerable websites and launch attacks. As a consequence, small or medium-sized Kiwi businesses which may once have been off the radar were becoming targets. The company claims data attacks in New Zealand are ten times higher than in Australia on a per capita basis. Kraynak said Kiwi businesses, even the big banks, had generally been slow to react to the “industrialisation” of cyberattacks.
American Banker – Banks Face Huge Losses In Wake of Data Breaches: Survey – Banks are on the hook for millions in the wake of data breaches, according to a study on cyber insurance the Ponemon Institute released Wednesday. The survey — which is broad and covers industries outside of financial services — outlines some of tremors banks could feel after being victimized by digital thieves. In all, 56% of surveyed companies suffered data breaches in the past 24 months. The average cost of these incidents was $9.4 million. Roughly 31% of the companies surveyed already had cyber insurance and about 39% of those businesses are considering the service.