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Are you susceptible to hackers?

Another day, another data breach story. From Sony and Bank of America to Honda and Lockheed Martin, several companies have garnered headlines in recent weeks after falling victim to attacks by hackers. And according to many cyber security professionals, data breaches, cybercrime and identity theft will likely continue to grow across the globe. But who is the most at risk when it comes to online security? Verizon’s 2011 Data Breach Investigations Report reveals that small to medium-sized businesses are now the primary target of hackers. Although the number of compromised records involved in data breaches dropped from 144 million in 2009 to only 4 million in 2010, the number of data breaches grew to 760, the largest caseload to date. This seeming contradiction likely stems from a dip in large-scale breaches, as cybercriminals switched their focus to opportunistic attacks on smaller businesses.

Additional data from the Verizon report shows that:

• Ninety-two percent of data breaches were caused by outsiders, rather than employees.

• Physical attacks jumped in 2010, and included manipulating common credit-card devices such as ATMs, gas pumps and point-of-sale terminals. 

• Hacking and malware is the most popular attack method.

•Weak or stolen passwords and the failure to change default credentials continue to be an issue, particularly in the financial services, retail and hospitality industries. 

• Businesses are much better protected if they implement essential controls across the entire organization.

Although these findings demonstrate that smaller businesses are more vulnerable, it’s important to remember that cybercrime can happen to any organization, regardless of size or industry. Recent studies have shown that PCI-compliant companies experienced less data breaches than those that are non-compliant, so all should remain vigilant in implementing and maintaining security practices.

SPVA members represent all points along the payment continuum, from POS payment terminal vendors to software developers to acquirers and so many more. Before your company gets lost in the payment security news and looming regulations, join us and stay ahead of the game, ultimately keeping your clients and consumers safe from security compromise.

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