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Experian study forecasts rise in pre-EMV data breaches

It is more important than ever for companies to prepare for a data breach and stay ahead of the game, the company says.

December 5, 2014

Experian Data Breach Resolution, a division of the Experian credit bureau, has released its second annual "Data Breach Industry Forecast," a white paper that outlines key issues and trends to watch for in 2015.

Experian Data Breach Resolution has drawn upon experience gained handling more than 3,000 data breaches this year and a decade of work in the industry, to outline six key predictions in the white paper.

"It has been an explosive year with an increase in the number of data breaches and identity theft cases over last year, so we are sharing our perspectives with the industry to help businesses navigate this complex environment," said Michael Bruemmer, vice president at Experian Data Breach Resolution. "It is more important than ever for companies to prepare for a data breach and stay ahead of the game."

The rise — and fall — of payment breaches

Adoption requirements for EMV chip-and-PIN technology being implemented in the U.S. could drive an increase in the frequency of payment breaches as the window closes for hackers to profit from this type of attack. However, businesses should be wary of the potential for the new infrastructure creating a false sense of security for consumers.

According to Bruemmer:

New technology that would replace magnetic-stripe credit cards with a microchip is a step in the right direction to protect against cyberattacks on brick-and-mortar retailers, but it isn't a silver bullet. Because EMV technology already exists in Europe, and the U.S. government publicly announced it will require implementation in the fall of 2015, cyberthieves likely already have identified vulnerabilities to target in the new infrastructure. It also doesn't help those who have been a victim of a breach already so these consumers are still at risk for identity theft and fraud.

A fresh breach surface with the Internet of Things

Like it or not, the Internet of Things is spreading rapidly, offering a wide range of benefits for businesses looking to review data and optimize performance. More devices are being created with Wi-Fi capabilities and sensors that create the opportunity for everyday items to relay information over the Internet and communicate with each other. As more companies adopt interconnected systems and products, cyberattacks also will likely increase via data accessed from third-party vendors.

Said Ozzie Fonseca, senior director at Experian Data Breach Resolution:

While the Internet of Things has huge potential, it also brings more points of vulnerability for organizations.  As companies adopt more interconnected products and systems, the Internet of Things could usher in the next wave of large third-party breaches. Businesses taking advantage of these technologies must address risk management and security with all of the platforms that collect or house personal information.

Download the complimentary white paper.