Retail Industry Data Breaches Most Common with U.S. Companies Heavily Targeted

The healthcare industry has been heavily targeted by cybercriminals, but retail industry data breaches are now the most common according to a recent study by Trustwave. Retail industry data breaches account for 22% of all reported breaches, closely followed by the food and beverage industry on 20%.

In 2016, corporate and internal networks were the most commonly breached systems although there was a marked increase in POS system breaches, which are now the second most targeted systems accounting for 31% of all reported breaches. Last year, POS data breaches only accounted for 22% of the total. POS data breaches were most common in the United States. In 2015, E-commerce platforms were heavily targeted accounting for 38% of all breaches, although in 2016 the percentage fell to 26%.

Healthcare data is in high demand, although it is still credit card numbers that are most commonly stolen. 63% of data breaches involved card data, split between card track data (33% of incidents) – mostly from hospitality and retail industry data breaches – and card-not-present data (30% of incidents) which came from breaches of e-commerce platforms.

The United States was also the most targeted country, accounting for 49% of all breaches – more than double the percentage of Asia-Pacific in second place with 21% of reported breaches. Europe was in third place with 20%.

Zero-day exploits are in high demand, commanding an initial price of $95,000 on the black market, although there were only 9 zero-day vulnerabilities exploited in the wild in 2016 – 5 for Adobe Flash, 3 for Internet Explorer and one for Microsoft Silverlight.

The top two methods of compromise were remote access – 29.7% of attacks – and phishing and social engineering, which accounted for 18.8% of attacks.

Exploit kit activity has fallen since the fall of the Angler, Magnitude and Nuclear exploit kits, although others such as Rig are increasing in popularity. Exploit kits activity could increase further due to the low cost of conducting malvertising campaigns – malicious adverts on third party ad networks that direct individuals to sites hosting exploit kits. Trustwave reports it now costs cybercriminals $5 to target 1,000 vulnerable computers with malicious adverts. Trustwave warns that while exploit kit activity has fallen, it would be wrong to assume it is gone for good. If it is profitable to use exploit kits, more will be developed.

Spam email is still the primary attack vector. In 2016, there was an increase in spam email messages rising from 54% of message volume in 2015 to 60% of total email volume in 2016. 35% of those messages contained malicious attachments, which Trustwave reports is up from 3% in 2015.

The most common malware variants discovered in 2016 data breach investigations attacked POS systems and were PoSeidon (18%) and Alina (13.5%) with Carbanak/Anunak in third place on 10%.

A recent Ponemon Institute study suggest data breaches take more than six months to detect, while Trustwave’s figures suggest the median number of days between intrusion and detection for external incidents was 65 days in 2016, although some companies took up to 2,000 days to discover a breach. Detection rates have improved from 2015, when it took an average of 80.5 days to detect a breach.

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Elizabeth Hernandez

Elizabeth Hernandez is a news writer on Defensorum. Elizabeth is an experienced journalist who has worked on many publications for several years. Elizabeth writers about compliance and the related areas of IT security breaches. Elizabeth's has focus on data privacy and secure handling of personal information. Elizabeth has a postgraduate degree in journalism. Elizabeth Hernandez is the editor of HIPAAZone. https://twitter.com/ElizabethHzone
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