Data Theft is Rampant in Indian Enterprises

Data is an asset and one of the top priorities for any CIO would be to

protect that data. But how good Indian enterprises are in creating a

fool-proof security regime - it is debatable if one reflects on latest

survey findings from Websense Inc. The survey which covered 50 CIOs,

chief risk officers and IT managers at the eCrime India Congress,

revealed some startling findings and points to serious security

loopholes rampant among Indian enterprises.






The findings reveal that organizations are under pressure to protect
vital data with 98% of the survey respondents agreeing to that. The

second major concern area among the survey respondents seemd to be

reputation risk and customer loss.  The survey findings suggest

that reputation risk and potential loss of customers emerged as two

major concerns among IT decision makers if a data breach was to occur.

Around 89% of respondents said that it may also lead to loss of

customers while 82% said that it will result in loss of reputation.

Meanwhile, 31% of the respondents said it may have negative impact on

the share price of the company.






So in the case of a data breach how would enterprises respond, and who
takes up the responsibility? In this regard 63% of the respondents said

the ultimate responsibility of data loss should lie with the top

management (CEO, CTO, and CFO) of an organization.  The survey

finding also revealed some hard facts - for instance, 63% of the

respondents believed that most data breaches happen as a result of

unintentional or accidental data leaks while 48% of respondents stated

that companies are not prioritizing href="http://dqindia.ciol.com/content/industrymarket/focus/2010/110012205.asp">security

due to href="http://dqindia.ciol.com/content/top_stories/2010/910020602.asp">cost-cutting

measures. Reflecting on this point Visweswaran M , CTO, Ma Foi

Consulting Solutions  says, The CIOs normally face  a

challenge in convincing the management when investing in areas like

information security and DR because its hard to equate the loss

theoretically - until and unless loss of business is perceived properly

by the management.






The survey also revealed a worrying trend on Intentional Data
Leakage. Around 68% of the  respondents said that intentional

data breaches happen when href="http://dqindia.ciol.com/content/industrymarket/focus/2009/109020602.asp">employees

take confidential data with them when leaving the company.

According to Surendra Singh, regional director, SAARC and India,

Websense, The survey findings clearly suggest that data security is

among the top issues for IT management, and confidentiality of data is

critical despite tough economic conditions and increased compliance

issues.






Despite the small sample size the survey reveals some interesting
pointers on the current state of data security practices and the need

for more pro-activeness. It also points to the burgeoning href="http://dqindia.ciol.com/content/dqtop20_09/IndustryAnalyses/2009/109081325.asp">security

market in India as more companies will increase their IT spend on

security solutions. With 89% of the respondents pinning their hopes on

the amendments to the IT Act 2008, which they characterized as  a

step in the right direction for tackling data security issues.

With changes in the IT Act to protect confidential data, the necessity

to reduce the risk of losing customers or damaging corporate

reputation, organizations should look to step up their plans in

building safeguards against possible data breaches, adds Surendra

Singh.