New York Attorney General Gives 5 Steps to Avoid Data Breaches!

In July, the New York Attorney General issued a tough report to data collectors. The report titled “Information Exposed: Historical Examination of Data Security in New York State,” analyzes the past eight years’ of data breaches by the Attorney General and the impact of those breaches upon New Yorkers. The report states that the number of security breaches reported in New York more than tripled between 2006 and 2013, most occurring between 2011 and 2013. The report further found that the leading causes of the data breaches were the result of third party hacking, lost or stolen equipment or documentation. Further, the report found that company insiders were involved in at least 10 percent of all breaches. The largest verticals affected were retailers, healthcare providers and their payment systems. The Attorney General also reported on the financial consequences of the expanded breach issue. The report estimates that in 2013, data breaches cost organizations doing business in New York over $1.37 billion. This figure included damage to individual consumers, investigation and attorney fees to the companies and indirect economic consequences related to consumer and investor confidence.