3 in 4 Chinese firms unprepared for data attacks

Summary:Their average financial loss through security breaches in 2013 was US$1.8 million, above the Asia-Pacific average of US$1.6 million, according to PricewaterhouseCoopers.

The average financial loss through security breaches in 2013 was US$1.8 million in the Chinese mainland and Hong Kong, above the Asia-Pacific average of US$1.6 million, according to PricewaterhouseCoopers (PwC).

Less than a quarter of companies in China and Hong Kong are adequately prepared for an information security incident, said PwC in a Xinhua news report.

"As the Chinese economy grows and becomes more global, individual companies will come under closer scrutiny by those seeking to exploit weaknesses," said Samuel Sinn, Risk Assurance Partner at PwC China. The survey collected 9,600 responses from corporate executives around the world between February and April this year on questions regarding privacy and information security protection.

Corporate IT systems have become more complex, with cloud technology and mobile devices making them fragmented," said Kenny Hui, risk assurance partner at PwC China.

Data security has increasingly become a concern in China, with more consumers switching to websites and mobile apps to access a wide range of services including retail and money markets.

The PwC report based on the survey does not have data for the Internet sector, but finds that while

Two in three of respondents in China said they have actively executed effective strategies to respond to security challenges, with the cost of doing so for each incident nearly as much as the losses of those least prepared to run an effective security program, accorindg to the report.

41 percent cited former employees as the most likely source of attacks, compared with the global average of 27 percent.

 

Topics: Security, China

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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