FBI: California, Florida, Texas Lead in Corporate Data Breaches, Losses
California and Florida had their worst year for data breaches in 2017.
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According to the FBI corporate breach data analyzed by Forbes Advisor:
California data breaches have cost the state over $80 million over five years.
Florida places second with data breaches resulting in nearly $58 million in losses.
In 2017, California had the worst year for data breaches, with 632 businesses affected.
Indiana experienced the greatest increase in financial losses over the last five years, with losses increasing by 1,290%
Over the last five years, data breaches have affected 11,343 businesses across the United States, resulting in nearly $432 million in losses.
The top five states that suffered the highest losses from corporate data breaches from 2017-2021 include:
1. California, with 1,807 breaches and more than $81 million in victim losses.
2. Florida, with 956 breaches and nearly $58 million in victim losses.
3. Texas, with 1,587 breaches and $48.6 million in victim losses.
4. New York, with 705 breaches and over $38.6 million in victim losses.
5. Pennsylvania, with 380 breaches and nearly $18 million in victim losses.
According to FBI data, the following states had the sixth through 10th highest losses from corporate data breaches:
6. New Jersey, with 266 breaches and nearly $16.8 in victim losses.
7. Illinois, with 395 breaches and nearly $12 million in victim losses.
8. Georgia, with 256 breaches and more than $11.6 million in victim losses.
9. Connecticut, with 166 breaches and $11.6 million in victim losses.
10. Minnesota, with 145 breaches and $11 million in victim losses.
California has experienced the most corporate data breaches in the last five years. Its financial losses increased by 253% in the last five years, with 2017 being the worst year in the state for data breaches, with 632.
Over the last five years, financial losses in Florida have increased by 154%, with 2017 again being the worst year for business data breaches in Florida overall, with 300.
Despite having more businesses affected by data breaches than Florida, Texas ranks lower in business losses.
Nationally, there were nearly 3,600 corporate data breaches in 2017 with more than $55.2 million in victim losses. The following year brought nearly 2,300 breaches and more than $91.5 million in victim losses.
In 2019, there were more than 1,670 breaches and more than $44 million in victim losses. The following year jumped to nearly 2,600 breaches and more than $114 million in victim losses.
And 2021 brought more than 1,200 breaches and more than $127 million in victim losses.
New research by KnowBe4 shows increasing the frequency of security awareness training improves reactions to security breaches by enhancing the understanding of security instructions.
KnowBe4 analyzed and compared responses based on those who completed no security awareness training, annual training, quarterly training and monthly training. It included data from over 526,000 people globally in a variety of industries.
Highlights from the findings include:
In 84% of cases, security awareness training increased employees’ understanding of security instructions.
The average clarity rating by respondents was 70 out of 100. However, the clarity varied greatly depending on how much security awareness training had been completed in the last 12 months.
When analyzing specific industries, hospitality was noted as having the highest frequency of no security awareness training. Education rated the clarity of instructions in the event of a security incident lowest of all industries examined.
Kai Roer is chief research officer at KnowBe4.
“The correlation between more frequent security awareness training and being better prepared on the specifics of how to deal with a security incident is made clear based on the findings of this report,” he said. “For organizations looking to improve their communication efforts with employees regarding what to do in the event of a security breach, leaders should implement security awareness training on a monthly or at least quarterly basis. Without the benefits obtained by frequent training, employees are left to decipher security instructions on their own, lacking proper guidance and ultimately putting the organization at higher risk for mishandling a security incident.”
New research by KnowBe4 shows increasing the frequency of security awareness training improves reactions to security breaches by enhancing the understanding of security instructions.
KnowBe4 analyzed and compared responses based on those who completed no security awareness training, annual training, quarterly training and monthly training. It included data from over 526,000 people globally in a variety of industries.
Highlights from the findings include:
In 84% of cases, security awareness training increased employees’ understanding of security instructions.
The average clarity rating by respondents was 70 out of 100. However, the clarity varied greatly depending on how much security awareness training had been completed in the last 12 months.
When analyzing specific industries, hospitality was noted as having the highest frequency of no security awareness training. Education rated the clarity of instructions in the event of a security incident lowest of all industries examined.
Kai Roer is chief research officer at KnowBe4.
“The correlation between more frequent security awareness training and being better prepared on the specifics of how to deal with a security incident is made clear based on the findings of this report,” he said. “For organizations looking to improve their communication efforts with employees regarding what to do in the event of a security breach, leaders should implement security awareness training on a monthly or at least quarterly basis. Without the benefits obtained by frequent training, employees are left to decipher security instructions on their own, lacking proper guidance and ultimately putting the organization at higher risk for mishandling a security incident.”
What do California, Florida and Texas have in common? They had the highest number of corporate data breaches and the highest victim losses from 2017-2021.
Forbes Advisor examined FBI Internet Crime Complaint Center (IC3) data from the past five years to determine which U.S. state had the most corporate breaches, and which had the highest total cost lost.
Other states ranking high for data breaches included New York, Pennsylvania, New Jersey, Illinois, Georgia, Connecticut and Minnesota.
Forbes Advisor’s Rob Watts
Rob Watts is a business editor at Forbes Advisor. He shared tips for trying to keep your company’s data safe.
“All told, there is no single solution when it comes to protecting your company’s data,” he said. “True protection comes from a combination of the right software tools, employee knowledge on cyber threats and established best practices in using company tech. Many data breaches come as a result of human error. So it’s important to make your employees as knowledgeable as possible when it comes to spotting and countering threats.”
Also on Monday, KnowBe4 released research showing more security awareness training improves employees’ reactions to security breaches.
Scroll through our slideshow above for Forbes Advisor’s findings on corporate data breaches.
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