Data Theft Grows 68 Percent in 2008

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The current study acknowledges that some breaches are under reported and multiple breaches are sometimes reported as a single event. The breach at BNY Mellon and SunGard data were cited as an example of a single event affecting multiple businesses.

The report shows an increase in data breaches at businesses, financial institutions and health/medical institutions. Interestingly enough, breaches that involved the government/military and educational institutions showed a decrease.

Breaches are becoming more technology based, also. Electronic data breaches accounted for 80.7 percent of the total versus 19.3 percent, which were considered paper breaches.

I suspect that the increased activity at businesses and financial institutions is because the goal is to steal financial instruments that already have a cash value associated with them. As the general public has become more aware of the issues surrounding identity theft, opening fraudulent accounts with other people's information is becoming more difficult. More people are reviewing their credit and placing alerts/freezes on their individual reports, either by doing it themselves or paying a service to do it for them. When accounts are stolen that already have disposable spending power or (cash) on them, identity theft protection is unlikely to stop them from being compromised.

Because of the increased awareness, more fraudsters take over accounts instead of trying to open new ones. Most of the current identity theft protection methods being used will not stop this from happening.

So far as the statistic that electronic theft is becoming more prevalent than paper theft, perhaps shredding documents is making stealing paper harder? Of course, it might also mean that the methods to steal information electronically have become more advanced, also. Crimeware kits of the DIY (do-it-yourself) variety have spread this ability to people, who lack the technical skills to do it by themselves. There is a lot of evidence that these kits aren't too hard to purchase over the Internet and that sometimes they even come with technical support.

ID Analytics partnered with the study and added statistical information showing that 39 percent of data exposures were caused by missing or stolen devices in 2007. Their statistics also show that malicious intent in data breaches is a growing trend. Malicious intent categories include insider theft and access into account information by external methods (hacking).

Article Author: Ed Dickson

Having worked around financial crimes for a number of years, I noticed they seemed to be on the rise. One reason for this is technology, which grows more rapidly than laws designed to protect us from it. …

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