2021 in Review – Data Privacy and Businesses

Learning from the privacy risks and cyber threats that dominated 2021

As we close out 2021, data privacy and cyber threats were hot topics for the nation. From significant data hacks affecting our nation’s oil supply chain to continued pandemic-related phishing scams, addressing these risks have been more important than ever for businesses. In this article, we look at what’s happened in 2021 to help companies form smart cybersecurity decisions in 2022.

Impact of continued remote work on businesses

Internet usage has changed drastically for businesses in the last year. Before the pandemic, it was estimated that about 15% of Americans worked from home. That number is now at 50%. Businesses have not only had to figure out how to manage teams remotely, but also mitigate the additional cyber-threats that come from having employees working from home. Overall, there were several types of threats that increased in 2021 and will likely continue to climb next year.

Rise of ransomware attacks Increase financial risk

One of the most publicized attacks in 2021 was a ransomware attack that created mass panic around the U.S. In May, the Colonial Pipeline experienced a ransomware cyberattack from a compromised password, likely retrieved from a dark web leak. Ransomware attacks were placed at the forefront of every American’s mind. It’s estimated that ransomware attacked a business, consumer, or device every 11 seconds in 2021. This was an increase of 37% from the previous year and is predicted to occur every 2 seconds by 2031. In the banking industry alone, there has been a 1318% increase in attacks this year. Not only have the number of attacks increased, but also financial demands. The average ransomware payment rose over 80% in the first half of 2021 to $570,000 and as we saw with the Colonial Pipeline, the attacks can halt businesses in their tracks, making payouts more likely.

Phishing scams affect employees in all industries

In Verizon’s 2021 Data Breach Investigations Report, cybercriminals stole login credentials in 85% of breaches linked to social engineering and phishing scams. Overall, it’s estimated that over 30% of businesses, no matter the industry, are prone to employees falling for phishing scams. As working from home becomes more commonplace, these scams will only increase, as attackers mimic co-workers, software, and other entities.

Cyber attacks on supply chain software grow substantially

Cyber attacks on supply chain software are becoming more prevalent and popular among hackers. These types of attacks are targeting businesses and infrastructure on a larger scale and is a growing concern in the industry. These attacks can result in anything from ransomware to malware to data breaches. The Identity Theft Resource Center found that supply chain attacks increased by 12% in the first quarter of 2021, but that the number of individuals affected went up by 564%. Experts are also predicting that these attacks will grow in 2022.

Record-breaking data breaches among businesses

As of Q3 2021, data breaches have surpassed all breaches of 2020.

If this trend continues, 2021 will be a record setting year for data breaches and predictions are for this number increasing for 2022.

Consumer concerns impact businesses

There has been a rising concern over data privacy and security among consumers, with roughly 9 out of 10 Americans being concerned about hacking that involves their personal and financial data. About 8 out of 10 Americans feel they have no control over the data collected about them by companies. Almost 50% of individuals feel their life would be significantly impacted if their identity is stolen.

As consumers become more aware and more concerned about data privacy, they look to businesses’ privacy practices. Half of Americans have chosen to not use products or services due to privacy concerns, with individuals who have experienced a data breach being less trusting. Businesses with strong data privacy practices also see a positive impact on their business, with the Wise Marketer reporting that over 80% of consumers are more loyal to companies with strong security controls. For a more in depth look at consumers’ data privacy concerns, be sure to read our article on the topic.

Moving into 2022

Cyber attacks and privacy threats are only going to grow in 2022. Implementing new strategies and practices can help businesses mitigate risk as well as build trust with consumers. Now is the time to become proactive. Not only should companies be reviewing and revising their current data privacy practices to ensure consumer and employee data is safe, but also implementing security measures with technology suppliers.

When it comes to data breaches, we are at record highs and that number is not going to diminish in 2022. Companies need to take proactive steps to get your organization “response ready” — before, during, and after a data breach. IDX’s no cost MSA Priority Response solution will help ensure you are ready for today’s highly complex and dynamic cyber threat landscape.

Companies that want to build trust with consumers and employees alike should look at additional benefits. Offering privacy protection solutions as an employee or membership benefit can enable them to take back control of their privacy and stay ahead of identity theft.

“By putting privacy protections in place and keeping individual’s digital footprint clean, companies can mitigate the risk from becoming a victim of this year’s wave of cybercrime,” recommends Tom Kelly, president and CEO of IDX.

Digital Privacy threats are changing rapidly. Companies that adapt the right solutions to stay ahead of privacy demands will earn trust and stand out in the market in 2022.