Internet Security Breach & Its Impact on Business Operations

Kim NguyenManish Shirke

Wa MoSaravanan Velrajan

Agenda 1. Introduction--Kim

2. Problem Description---WA

3. Definition of Concepts---WA

4. Data Analysis ----Manish   

5. Major Findings: ----Saro

6. Conclusions & Recommendations ---Kim

Introduction

Analyzed Security Issues

Security related concerns in organizations

Money spent on Internet Security

Problem Description Digital data is being exposed to higher risk

factors

Spam gaining momentum worldwide

Intrusion can result in data theft, permanent data damages, and complete data loss

Internet security breach is becoming the biggest, potential threat to data loss in the 21st century

Definition of Concepts and Terms

Viruses and Worms Spam Spyware Eavesdropping

Data Analysis - Primary DataWe conducted a survey for collecting Primary Data :

How comfortable you feel using the Internet for money related transactions? (Comfort levels 1 (Low) & 5 (High))

Did you conduct any money or credit transaction over the Internet in the past month? If yes, how many?

Were you or anyone you know a victim of Internet identity theft?

How many times were you attacked by email spam, virus…in the past 6 months?

What percentage of junk emails received in past 3 months?

Comforte Level in making financial transactions via Internet

0

1

2

3

4

5

6

7

8

1 2 3 4 5

Comfort Level

Partic

ipants

Number of Participants

The median comfort level for money related transactions via the Internet was 4.

Survey Results

The median number of transactions processed via the Internet was 5.

Number of transactions made via Internet

0

1

2

3

4

5

6

7

8

9

0 to 5 6 to 10 11 to 15

No. of Transactions (Range)

No. of participants

Only one participant had been a victim of Internet identity theft.

No. of participants affected by Internet Identity Theft

0

2

4

6

8

10

12

14

16

Yes No

Affected by Identity Theft

No

. of

par

tici

pan

ts

No. of participants affected by Internet IdentityTheft

Seven participants had been attacked by email spam/virus.

No. of times affected by email spams

0

1

2

3

4

5

6

7

8

9

0 1 2 3

No. of times affected

No

of

part

icip

an

ts

No. of participants

The median number of junk emails received was twenty percent.

Percentage of junk emails received

0

1

2

3

4

5

6

7

8

9

10

0 - 25 26 - 50 51 - 75 76 - 100

Percentage of junk emails

Par

tici

pan

ts

No. of participants

Inferences from Primary Data

People are comfortable making money related transactions via the internet.

Internet users are attacked by email spam and virus and have been victims of identity theft.

A significant amount of email received by internet users is spam or junk email.

Data Analysis - Secondary Data

• The number of daily spam outbreak shoot up to 1,600,000 per day in the year 2004. (Internet Security Solutions, 2005).

• Known computer viruses grew by 28,327 in 2004 to bring the number of old and new viruses to 112,438, according to IBM (Security Statistics, 2005).

• The market for web intrusion protection services and products is expected to increase to nearly US $700,000,000 by 2006 (Spam and Viruses, 2004).

• Only 0.4% of a company’s revenue, on average, is dedicated to information security in the U.S. By 2011, however, that figure will accelerate tenfold to 4% of revenue for U.S. companies. (Computer world, 2001).

• An average of six IT security professionals is there for every 1,000 employees (Global Security Survey, 2005).

Impact of Internet Security Breach

Financial Losses

Theft of proprietary information

Greater online security costs for smaller companies

Recent Impact Studies Deleting spam costs ~$22 billion a year

in lost worker productivity

45% of the companies surveyed used intrusion prevention systems

Worldwide damages due to virus/worm attacks in 2004 were ~$17.5 billion

Information security professionals expected grow to ~2.1 million workers by 2008

Regulatory Effects Compliance Regulations by

Government

Encryption of Data

Sarbanes-Oxley Act requires public companies to save every record related to the audit process

Responses to Internet Security Breach

Internet Infrastructure security setup

Conclusion

70% of companies go out of business after a major data loss

Major disasters affect IT every 5 years

Security Market grow to $45 billion in 2006