Report: Breaches of more than one target amplify financial damage by 26 times

A multi-party violation creates 26 times more financial damage than the damage that even the worst single-party violation can cause, according to a new company report from Mastercard RiskRecon and Cyentia Institute.

The study, “Ripples on the Risk Surface,” quantifies how a multi-party data breach impacts numerous organizations in today’s interconnected digital world.

Observational data, collected from more than a decade of publicly reported breaches, points to the extent to which waves of impact from a single organization security incident can spread across industries and other individual organizations. This is the second edition of the report. Since the launch of RiskRecon and the Cyentia Institute’s 2019 Ripples Across the Risk Surface report, the tech world has been surprised for several dramatic examples of the damage that a single incident can cause, wreaking havoc on many subsequent organizations.

Cybersecurity incidents impacting one or two organizations at once is bad enough, and now the number of security risks creating a ripple effect in many organizations is increasing. According to the report, four is the average number of organizations affected by propagation events in the analyzed data set.

The full 2021 report details the results of the research on multi-party infractions and the effect they can have on an organization’s digital supply chain. High-level findings include how multi-party incidents have hurt organizations financially since 2008, the different impacts caused by multi-party and single-party security incidents, and the number of days for an event to take place. typical dominoes reach 75% of its subsequent victims. .

The report is based on an analysis of 897 multi-party violations involving three or more interrelated companies.

Read the full report by RiskRecon and Cyentia Institute.

VentureBeat

VentureBeat’s mission is to be a digital urban plaza for technical decision makers to gain insight into transformative technology and transact. Our site offers essential information on data technologies and strategies to guide you as you run your organizations. We invite you to become a member of our community, to access:

  • updated information on the topics of your interest
  • our newsletters
  • Exclusive content from thought leaders and discounted access to our treasured events, such as Transform 2021: Learn more
  • network features and more

Become a member

Leave a Comment