E-retailers must focus on their specific goals and examine a vendor’s reputation and market expertise, not referrals.
That amounts to roughly 175.66 million stolen records in the quarter, according to a new report by data protection vendor SafeNet Inc. And 83% of the records criminals pilfered were held by retailing companies—with 145 million stolen in the massive eBay breach.
Criminals stole roughly 175.66 million consumer records in the second quarter, according to a new report by data protection vendor SafeNet Inc. That equates to an average of 1.95 million records stolen per day.
The retail industry accounted for about 145.80 million, or 83% of the stolen records. However, that’s somewhat deceptive because eBay Inc.’s breach, which involved the theft of data about 145 million shoppers’ accounts represented nearly all the retail losses.
EBay’s breach was massive. Attackers compromised eBay’s employees’ logins to gain access to a database storing eBay shoppers’ encrypted passwords and other “non-financial data.”
The report finds that of the 237 breaches that occurred in the second quarter, U.S. companies accounted for 85% of the compromised records. SafeNet says that only 10 of the 237 companies that reported data breach incidents used what SafeNet calls “secure encryption” or “authentication solutions” that protected data from being accessed by unauthorized individuals.
Those breaches could have serious implications for companies that fail to protect data as 65% of consumers say they would never, or would be unlikely to, shop or do business again with a merchant that experienced a data breach where financial data, like credit card information, was stolen, according to a new SafeNet survey of 4,500 online consumers in the United States, United Kingdom, Germany, Japan and Australia.
Moreover, only 50% of respondents say that they feel companies take data security seriously.
“Data breaches are not just breaches of security,” says Tsion Gonen, SafeNet’s chief strategy officer. “They’re also breaches of trust between companies and their customers, and they can result in not only negative publicity but lost business, lawsuits and fines that can threaten the viability of the business.”