DATA LOSS BAROMETER. A global insight into lost and stolen information
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1 DATA LOSS BAROMETER A global insight into lost and stolen information KPMG s Data Loss Barometer exposes the latest trends and statistics for globally lost and stolen information in Over 82 countries are represented in 2012, with over 96 countries represented over the last five years. Great Britain 8.4% Canada 3.25% Japan 1.2% Australia 1.2% Ireland 0.7% India 0.7% Germany 0.5% Netherlands 0.5% China 0.5% kpmg.com U.S.A 75% China 1.5% Italy 1.8% Spain 1.9% Venezuela 2% 1
2 CONTENTS KEY FINDINGS 3 SECTION ONE 5 OVERVIEW DATA LOSS TRENDS SECTOR TRENDS A FIVE YEAR VIEW SECTION TWO 12 CHARTS DATA LOSS TRENDS A FIVE YEAR VIEW GLOBAL CHARTS 19 ACKNOWLEDGEMENTS We would like to thank Risk Based Security for providing the data used in the Data Loss Barometer. In addition, we would like to thank the following project team members for their contribution: Bona Boraliu Charmaine Servado Lissa Mitchell Martin Tyley 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG 2
3 KEY FINDINGS Hacking number one data loss threat Over the past five years, more than one billion people globally have been affected by data loss incidents. In the last two years, there has been a jump of 40% in the number of publicly disclosed data loss incidents. Over the last five years, 60% of all incidents reported were due to Hacking. Healthcare sector shows significant improvement The Healthcare sector, which previously struggled between 2010 and 2011 with the highest number of data loss incidents has shown dramatic improvement in The percentage of data loss incidents that affected the Healthcare sector has fallen from a high of 25% in 2010, to just 8% in Technology sector number one worst performing sector by number of people affected Over the last five years, the Technology sector, had fewer incidents than the Top Five worst performing sectors (Government, Healthcare, Education, Financial Services, and Retail) however, the percentage of people affected by incidents in that industry remains the highest; accounting for 26% of the total number of people affected. 3
4 Insurance sector number one at risk from Social Engineering and System/Human Error In the first half of 2012, the Insurance sector appears to be at greatest risk from Social Engineering attacks and System/ Human Error incidents. First time in five years that insider threat has decreased and is at an all-time low Surprisingly, for the first time over the last five years, the threat from malicious insiders has dropped from an average from previous years of 25% of total number of incidents, to an all-time low of 6.5% in Conversely, we see a dramatic rise of double the number of incidents from external sources in 2012 from 2010, accounting for 81% of total number of incidents. This could be because the rise in hacking has taken people s eyes off the insider threat KPMG has not seen an improvement in controls to prevent or detect insiders in the period. Overall data loss incidents return to similar levels as 2008 Following a fall in reported incidents in when compared to 2008, the trend has reversed with a higher number of incidents reported in 2011, and total incident numbers in 2012 almost returning to 2008 levels. This could be accounted for by a maturing regulatory environment where incidents are being identified and monitored more thoroughly, but is also likely to be a result of the dramatic increase in the sophistication and variety of attacks we have seen in the last 18 months. 4
5 SECTION ONE: OVERVIEW 5
6 2012 DATA LOSS TRENDS * January June 2012 Hacking 6a continued thr 7%eat, of total incidents External data losses RISE 40% vs. previous year, AFFECTING 160 MILLION PEOPLE Insurance sector number 1 AT RISK from Social Engineering and System/Human Error 6
7 Government, Education, Technology & WORST affected sectors for data loss Data loss incidents involving 3third parties are more commonplace in the Technology sector Personally identifiable information remains 1 the number data loss type 7
8 2012 SECTOR TRENDS 1 Over 96% of data loss incidents in Media were attributed to Hacking in the first half of Insurance sector number one at risk from Social Engineering and System/Human error in the first half of Financial services have seen an 80% reduction in data loss by number of incidents in the last five years, but is still the fifth worst performing sector in the first half of
9 4 Government has maintained relatively flat rates of data loss incident numbers since 2008, ranking either number one or number two as overall worst performing sector by total number of incidents over the last five years. 5 75% of data loss incidents in Retail were attributed to Hacking in the first half of million people have been affected by 6 PC theft. It represents around 1/3 of all data loss incidents in the Healthcare and Professional Services sectors in the first half of
10 A 5 YEAR VIEW Total number of incidents show Technology, Financial services, Retail and Media as the worst performing sectors 681 million records/people affected by Hacking as number one cause of data loss 10
11 J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A S O N D S O N D S O N D S O N D S O N D Hard Drive number one portable media incident, but a growth in DVD/CD incidents Healthcare sector shows a sharp drop in the number of breaches in
12 SECTION TWO: CHARTS 12
13 2012 DATA LOSS TRENDS * January June 2012 By sector: number of incidents as a percentage of total for 2012 Other business sectors 21.8% Law 2.5% Data services 0.4% Insurance 1.2% Financial services 3.2% Not for profit 3.7% Professional services 5.2% Healthcare 7.9% Media 8.3% Retail 8.3% Technology 8.6% By cause: number of incidents as a percentage of total for 2012 Improper disposal Human/system error 2% 4% Portable media Web/network theft/loss exposure 1% 4.6% Education 12.6% Hacking 67.2% Government 16.4% Unknown PC theft Malware 3% 4.8% 1.4% Hard copy theft/loss Fraud/social engineering 4.6% 7% 13
14 By sector: number of incidents as a percentage where a third-party was involved for 2012 Media 2% Not for profit 3% Law 2% Insurance 3% Organization 1% Ind. Markets 2% Data Services 2% Organization 1% Other business sectors 12% Financial 9% services Healthcare 13% Education 12% Professional services 14% Government 6% Retail 3% Technology 17% 14
15 Cause of data loss vs. Industry: number of incidents as a percentage of total for 2012 (January June) Government Healthcare Education 7% 7% 14% 62% 28% 7% 8% 10% 18% 6% 6% 69% 14% Professional services Technology 9% 32% 11% 8% 11% 13% 13% 74% Organization Not for profit 8% 75% 94% 15
16 Financial services Retail 8% 8% 35% 12% 8% 76% 30% Insurance Media 8% 8% 8% 33% 17% 25% 98% Law firms Industrial markets Other business sectors 7% 7% 7% 38% 6% 7% 11% 63% 63% 9% 64% Hacking Human/system error Malware Hard copy loss/theft PC theft Web/network exposure PC loss Unknown Portable media Fraud/social engineering Improper disposal 16
17 A FIVE YEAR VIEW By cause: number of external incidents 100% as a percentage of total five year trend 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Insider malicious External Insider accidental Insider unknown By sector (Worst five): number of incidents as a percentage of total five year trend Government Financial services Education Healthcare Retail 30% 25% 20% 15% 10% 5% 0% % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% By portable media: number of portable media incidents as a percentage of total five year trend Hard drive USB memory Tape Other DVD/CD Mobile device 17
18 By sector: number of records/people affected as a percentage of total since 2008 (to June 2012) By cause of data loss: number of records/ people affected since 2008 (to June 2012) Data services 14.2% Other business sectors 1.1% Fraud/social engineering 16% Unknown 3.8% Not for 0.8% Industrial markets 1.5% Profit Organization 2% Media 12.5% Insurance 1.3% Web/network exposure 10.4% Human/system error 0.8% Technology 23.6% Hacking 65% Professional services 0.7% Retail 13.7% Healthcare 3.2% Financial 14.8% services Education 5.4% PC Loss 0.8% PC Theft 1% Portable media theft/loss 8% Improper Government 5.2% 0.1% Hard copy theft disposal or loss 0.7% 18
19 GLOBAL CHARTS Other 24.5% Netherlands 0.5% China 0.5% Other 8.1% Canada 3.25% Germany 0.5% India 0.7% Ireland 0.7% Australia 1.2% Japan 1.2% 2 By country: number of incidents as a percentage of total for 2012 (January - June) Great Britain 8.4% 1 By country: number of incidents as a percentage of total since 2008 (to June 2012) U.S.A 75% China 1.5% Italy 1.8% Spain 1.9% Venezuela 2% Australia 2% India 2.1% Netherlands 2.2% Canada 4.2% U.K. 10.1% U.S.A. 47.6% 19
20 12 By country: number of incidents as a percentage of total - five year trend 6 100% 80% 60% 80.3% 81.5% 83.4% 69.8% 40% 47.6% 20% 0% U.S.A. Great Britain Canada China Germany Australia Ireland India Japan Netherlands Other 20
21 KPMG Contacts Contact Us Malcom Marshall Partner, UK and Global Leader, Information Protection and Business Resilience Stephen Bonner Partner, Financial Services, Information Protection and Business Resilience Charlie Hosner Partner, Sectors, Information Protection and Business Resilience The Data Loss Barometer is being replaced by KPMG s Cyber Vulnerability Index, the first edition of which was published in July 2012, and is available at: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation KPMG International Cooperative ( KPMG International ), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Printed in U.K. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. RR Donnelley I RRD I November 2012 I Printed on recycled material.
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