The Hidden Dangers of Weak Security Exposed
▼ Summary
– Clorox is suing Cognizant for $380M over alleged helpdesk failures during a cyberattack, citing gross negligence like giving away passwords.
– The cyberattack story involving Clorox and Cognizant was widely read by CSO’s audience, sparking interest in cyberattack costs.
– The average global cost of a data breach has reached an all-time high of $4.88 million, a 10% increase from the previous period.
– In the US, the average cost of a data breach is even higher at $10.2 million.
– Costs vary by industry, but the key takeaway is that investing in security is essential to avoid hefty breach expenses.
Cyberattacks continue to inflict staggering financial losses on businesses worldwide, with recent cases highlighting just how costly security failures can be. The high-profile lawsuit between Clorox and Cognizant, where $380 million in damages are being sought over alleged IT support failures during a breach, underscores the severe consequences of weak security practices. Court documents reveal shocking lapses, including helpdesk agents bypassing multi-factor authentication and sharing passwords without proper verification.
The financial impact of cyber incidents has reached unprecedented levels. Recent data shows the average global cost of a data breach now stands at $4.88 million, a sharp 10% increase compared to previous years. For U.S. companies, the damage is even more severe, with breaches costing an average of $10.2 million. These figures vary by industry, but the message remains clear: organizations that neglect security measures face devastating financial repercussions.
Beyond immediate monetary losses, breaches often lead to regulatory fines, legal fees, and long-term reputational harm. The Clorox case demonstrates how third-party service providers can become weak links in an organization’s security chain. Proactive investment in cybersecurity isn’t just advisable, it’s a financial necessity. Companies that fail to prioritize robust defenses risk paying far more in the aftermath of an attack than they would have spent on prevention.
As threats grow more sophisticated, businesses must adopt stricter access controls, employee training, and vendor oversight. The numbers don’t lie, cutting corners on security is a gamble with multimillion-dollar consequences.
(Source: COMPUTERWORLD)