Special Report: Cyber Risk and Security

The word of the year, so far, with regards to cybersecurity, seems to be “data breach.” In the first half of 2014, 381 reported breaches led to the exposure of 10,879,404 individual records in the United States, according to a report from the Identity Theft Resource Center. That’s equivalent to 2.1 breaches and 60,107 records exposed per day, and it doesn’t count the breaches that were never reported.

The breaches are taking a toll on consumer confidence in America’s enterprises and their ability to keep sacred information safe and secure. According to  NXP Semiconductors N.V.,  and its “Security Matters: Americans on EMV Chip Cards” survey, while consumer confidence in credit card technologies remains high, Americans continue to demand better solutions that protect identity, personal information and financial data. With recent compromises in security at Target, Neiman Marcus, PF Chang’s and other retailers, Americans are more likely to pay in cash following a security breach at large retailers, the survey said, with the millennial age group (18 – 34 years of age) being the most likely to convert to cash (37 percent). For example, 80 percent of Americans are confident in their financial institution and the security of their financial accounts, as well as the security and protection of their credit/debit cards (73 percent). However, once a security breach at a major store occurs, consumers automatically turn to less convenient forms of payment (64 percent) – such as cash – to complete a purchase.