top of page
iso consulting services

+1 800 939 4232

Mon-Fri 9am-6pm PST

Search

The Cost of Human Error in Notable Cybersecurity Breaches – Their Fiscal Impact, and Lessons Learned from Them

Brought to you by IBEC Intelligence


When it comes to cybersecurity, your organization can purchase the most sophisticated programs, but then when an employee shares his or her password, or clicks on a malicious link, it opens the floodgates to danger.  Like it or not, when it comes to cybersecurity, human error remains one of the most significant vulnerabilities for organizations. Despite advanced technologies and sophisticated security protocols, mistakes made by employees can lead to catastrophic breaches. Here, we are sharing some notable examples of cybersecurity incidents caused by human error, their fiscal impact, and the lessons learned from these events.

 

Target Corporation (2013) – The Target breach compromised the personal information of over 40 million customers and led to significant financial fallout. The company faced costs exceeding $162 million for the breach, including legal fees, settlements, and increased security measures. Additionally, Target's reputation took a hit, resulting in a decline in customer trust.

Lesson learned from the Target breach – Enhanced Vendor Management.

Organizations must implement strict access controls and conduct regular security assessments of third-party vendors. Employee training on recognizing phishing attempts is vital.


Yahoo (2013-2014) – Yahoo experienced multiple breaches affecting over three billion accounts, leading to a $350 million reduction in its sale price to Verizon. The company also faced considerable legal expenses and settlements, estimated at $85 million. Weak security practices and inadequate encryption contributed significantly to these breaches.

Lesson learned from the Yahoo breach – Strengthening Account Security.  Organizations should enforce strong password policies, including two-factor authentication (2FA), and regularly update encryption methods to protect sensitive data.


Equifax (2017) – Equifax's data breach affected 147 million people, resulting in costs that exceeded $1.4 billion. This figure includes legal fees, settlements, regulatory fines, and increased cybersecurity investments. The breach occurred due to a failure to patch a known vulnerability, which highlights the critical nature of timely updates.

Lesson learned from the Equifax breach – Timely Software Updates and Patch Management.  Organizations must establish a rigorous software update and patch management process to ensure that all software and systems are up-to-date and secure against known vulnerabilities.

 

Marriott International (2018) – Marriott's data breach exposed the records of approximately 500 million guests, leading to estimated costs of $124 million in response efforts, legal fees, and regulatory fines. The breach was exacerbated by a lack of employee training on data security protocols, which contributed to the vulnerability.

Lesson learned from the Marriott breach – Integrating Security Post-Merger.  Organizations should prioritize cybersecurity during mergers and acquisitions, ensuring that all systems and personnel are aligned with security best practices.  This must be included in the post-acquisition list of must-do actions.


Facebook (2019) – This 2019 breach exposed the personal information of over 540 million users due to misconfigured cloud storage settings. The incident resulted in a $5 billion fine imposed by the Federal Trade Commission (FTC) for privacy violations. The error was attributed to developers who failed to secure the data properly.

Lesson learned from the Facebook breach – Regular Security Audits.  Organizations must conduct regular security audits to identify and rectify configuration errors, ensuring that sensitive data is protected from unauthorized access.  Additionally, in the haste of development and delivering products, developers may overlook security checks, sob additional quality controls must be put in place.


Capital One (2019) – A misconfigured web application firewall led to a breach affecting over 100 million credit card applications, costing Capital One $80 million in settlements and legal fees. The company also faced increased scrutiny and regulatory investigations, emphasizing the financial risks associated with inadequate security measures.

Lesson learned from the Capital One breach – Monitoring and Response.  Organizations should implement continuous monitoring of their systems and establish protocols for responding to unusual access patterns or security alerts promptly.


As you see, all these examples represent well-established multi-national organizations that are flush with resources compared to most other entities.  Yet these examples illustrate that human error can have devastating consequences for any organization, resulting in significant financial losses, legal ramifications, and reputational damage. The total fiscal impact of these breaches highlights the importance of proactive measures.

You can mitigate the risks associated with human error by prioritizing training, and implementing robust security protocols to foster a culture of cybersecurity awareness. By learning from past incidents and mistakes of others, your organization can better prepare for the ever-evolving landscape of cyber threats, ultimately safeguarding your data, assets, and reputation.


 

Comments


bottom of page