Internet Security Breach & Its Impact on Business Operations Kim Nguyen Manish Shirke Wa Mo Saravanan 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 Data We 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 spam, virus…in the past 6 months? What percentage of junk s received in past 3 months?

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.

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

Seven participants had been attacked by spam/virus.

The median number of junk s received was twenty percent.

Inferences from Primary Data People are comfortable making money related transactions via the internet. Internet users are attacked by spam and virus and have been victims of identity theft. A significant amount of received by internet users is spam or junk .

Data Analysis - Secondary Data The number of daily spam outbreak shoot up to 1,600,000 per day in the year (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