Directors ask for more Punishment for Firms Weak on IT Security

Businesses are expected to face harsh fines should they fail in maintaining the safety of customers’ data, according to a large number of directors amid numerous hacks on big companies.

A substantial 70% of board members have asked for stiffer punishments for anyone who fails to adhere to IT security requirements, says research organisation ComRes.

The numbers, announced by FTSE 250 security firm NCC Group at the recent Institute of Directors Annual Convention, came after Yahoo! revealed it has been victim to the largest ever attack on a high-profile company.

Chief executive for NCC, Rob Cotton, said that big firms were typically more complacent than smaller businesses with regards to IT security, with directors failing to assume responsibility for maintaining safety.

Yahoo! recently said that names, phone numbers, and passwords from over 500m accounts were stolen in a state-sponsored attack two years ago, but were only recently discovered. The cyber attack has a bearing on 8m online users, which includes some BT and Sky email accounts.

Cotton said:

“For years it hasn’t been taken seriously enough in boardrooms across the country, and while these results don’t prove that it’s now being managed appropriately, they do show that directors are realising that greater scrutiny and oversight from regulators and government will stimulate the necessary action and help drive-up standards.”

We may, in the not too distant future, see more penalties for businesses not demonstrating enough effort when it comes to maintaining online safety. That’s just one reason why it is imperative that UK firms create IT security jobs in order to shore up their cyber defence.