Consequences of an inadequate data center security
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Consequences of an inadequate data center security
As we step into the era of technology, data has become businesses’ greatest asset. In our previous blog, Data center security: Threats against operability, we explored four areas companies must consider when selecting a facility to keep their information safe. But what happens if your data center is not adequately equipped? Here, we highlight the consequences a lack of security infrastructure can have on organizations.
Disruption to operations
In 2012, Hurricane Sandy took out at least eight data centers in Manhattan, New York. InterNAP’s data center along Broad Street was submerged by floodwater, causing connectivity and server issues. Customers of InterNAP were even urged to shut down servers immediately. Datagram was among the worst hit by the hurricane. The NYC-based Hosting and Internet Services Provider suffered flooding in the basement of their facility, taking out servers hosting BuzzFeed, Huffington Post, Gawker and other sites. The lack of mitigation infrastructure to combat such natural disasters at these data centers left organizations like the United Nations and Bloomberg News unable to function.
“If a data center doesn’t prescribe to Murphy’s Law – that is operating under the assumption that anything can go wrong will go wrong- you shouldn’t be entrusting them with the security of your data.”
An Infrascale survey conducted in May 2020 on small and medium businesses (SMBs) revealed more than a third (37%) of SMBs lost customers to downtime, highlighting the importance for a business to have a reliable and secure infrastructure preventing such situations from arising. Downtime affects any company that depends on online sales, as this means customers are unable to purchase products and services, which ultimately leads to loss in revenue.
Monetary loss
Cognizant, one of the largest providers of server hosting and IT services in the US, was a victim of a ransomware incident which negatively impacted its Q2 revenue in April 2020. Access to a series of services was cut and their servers were eventually inaccessible. Karen McLoughlin, Cognizant Chief Financial Officer said they expect this downtime to be within a range of USD $50-70 million for the quarter. In March last year, aluminium producer Norsk Hydro, also reported a ransomware incident, which cost total revenue losses of more than USD $40 million – a sum later adjusted to $70 million.
Marriott has also disclosed yet another security breach in April 2020 that exposed personal information such as names, birthdates, phone numbers and loyalty account numbers. This comes on the heels of their 2018 data breach, where a security investigation concluded that there was “unauthorized access” to a database holding hotel guest records. In 2019, UK authorities fined Marriott more than £99 million for the incident in 2018.
IBM’s study of over 500 data breach victims — conducted by the Ponemon Institute — shows that most organizations incur only about two-thirds (67%) of their data breach costs in the first 12 months. They spend 22% in the second year and the remaining 11% more than two years after the incident as fines and legal fees accumulate in the years following a breach, and not in the immediate aftermath of one.
More attention is needed for data center security infrastructure, as there is no room for complacency in today’s evolving cybersecurity landscape when the consequences of a security breach could result in significant losses.
Reputational damage
The consequences of a data breach goes beyond potential fines. The reputational damage is just as devastating.
Following major revelations on Twitter in October 2019, VPN provider NordVPN confirmed it was hit by a security breach in March 2018. NordVPN admitted that it learned of the attack in April 2019, more than a year after it happened, but the company only went public some six months later in October 2019, after details were exposed on Twitter. NordVPN claims the breach was due to a fault by the data center that let an undisclosed IPMI (Intelligent Platform Management Interface) account to access the server.
Research has shown that up to a third of customers in retail, finance and healthcare will stop doing business with organisations that have been breached. Presently, with the advent of technology, information dissemination is almost instant, and organisations can become a global news story within a matter of hours of a breach being disclosed. Striving to restore the trust and confidence between stakeholders after a data breach is one of the most difficult task a company must overcome. Reputational damage is long-lasting and can have an impact on an organisation’s ability to attract new customers, future investment and new employees to the company.
An ICO survey conducted in 2020 found people are increasingly likely to choose service providers based on how their business critical data is protected, and some 73% of respondents mentioned they would hold companies responsible for data breaches involving their personal information. This shows the importance that we place on the security of our data. In other words, data centers must incorporate security measures from the ground up to protect the data of their customers.
SpaceDC understands the importance of security and we ensure our data centers are built to international standards. With 8 different layers of physical access controls at our facility and extensive protocols meeting TVRA standards, it is SpaceDC‘s top priority to safeguard your data all the way from design to mitigating threats.
Discover how SpaceDC maximizes security in our whitepaper or contact us for more information.
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Deep dive into our white papers below to read the latest industry reports on topics ranging from green facilities to data center security and digital transformation.
Data center security: Threats against operability
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Milestones and updates.
Data center security: Threats against operability
Southeast Asia is the fastest growing region for colocation data centers, with an expected compounded annual growth rate of 13 per cent from 2019 to 2024, according to a 2019 Cushman & Wakefield report.
The rising number of data centers means more business critical information is vulnerable to threats. Facilities with inadequate security features are at risk to potential data breaches. In May 2020, Tokopedia, one of Indonesia’s biggest e-commerce platforms admitted that some data related to names, e-mails and telephone numbers were accessed by hackers. This breach of user information drew criticism from the public, as Tokopedia was an established and trusted technology company.
“Like banks, the sheer volume of valuable assets data centers contain make them a flashing beacon for attack.”
Here are key areas you need to consider and audit when selecting a facility to ensure your data remains secure:
Physical threats
Physical attacks or terror attacks to undermine data centers are far more common in certain geographical regions, particularly in the Middle East, Africa and South Asia. These violent intrusions can cause damage resulting in businesses downtime and loss of trust from stakeholders.
Natural disasters are one of the top concerns of data centers around the world. With 44% of the world’s natural disasters coming from Asia, ResearchGate shared that this region is most vulnerable to unforeseen circumstances such as storms and floods. Thus, it is important that data centers in Asia develop disaster recovery and business continuity plans. For example, in 2009, Vodafone’s facility in Istanbul, Turkey was flooded during a torrential downpour. CCTV footage caught the watery onslaught filling up the server room, but Vodafone had implemented a disaster recovery plan, which allowed them to restore most of the data that was affected.
Such happenings are not something companies can afford to simply ignore and data centers should be proactive in their planning for physical threats.
Economic Corruption
Certain regions around the world are faced with higher levels of economic corruptions, making theft and sale of sensitive digital data a reality. The consequences of a data breach could be damaging to both the business and company reputation.
When selecting a facility, ensure it has multiple layers of security that would effectively protect your data. For example, visitors must ask for access at least 1 day prior to arriving at the data center, and will be escorted throughout their time there. Strict security procedures mean there is no opportunity for an individual to access the data in your racks without permission.
Distributed Denial of Service (DDoS) attacks
Distributed Denial of Service (DDoS) attacks are committed by malicious third parties to damage significant infrastructure as an attempt to cause disturbance to business activities. Unlike theft of data, DDoS attacks steal time and operability, causing outages to the company’s data. This is extremely detrimental to many companies that have a 99.99% uptime guarantee.
In September 2020, a series of DDoS attacks plagued online learning in Miami-Dade County public schools by overloading the district’s data center and disabling the system, preventing students and teachers from logging in. With workarounds, the schools have been able to continue with online classes, but a permanent solution has yet to be found.
Without a proper security infrastructure to deal with DDoS attacks, many businesses that rely on the data center would experience difficulties proceeding with daily businesses.
Neglect of security
As the number of data users rapidly grows in the region, solution providers will need to accommodate at the same pace. This results in risk of speed being prioritized over security, leading to weaker infrastructure, less comprehensively planned systems and increased human error.
SpaceDC understands the seriousness of these threats when it comes to building our data center and implements the very latest in terms of physical security standards. Companies can trust our data centers, as we have the best possible IT infrastructure and top tier facilities that can withstand these threats and protect the interests of your businesses.
If you would like to find out how SpaceDC ensures maximum security for our data center, read our whitepaper or contact us today.
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Deep dive into our white papers below to read the latest industry reports on topics ranging from green facilities to data center security and digital transformation.