Here’s a statistic that’ll get your attention!  285 million records were compromised in 2008 according to a new data breach study from Verizon Business.  The report claims that organized crime is responsible for a large increase in the number of breached corporate electronic records.

The report of industries affected by data breach shows that Financial Services was the major gainer in 2008.  That industry doubled its percentage of data breach to 30% while Retail is still the most affected industry (barely) at 31%. The shift to data breach in Financial Services will affect all of us more drastically.

According to the study, which Verizon Business compiled using data from the 90 confirmed corporate network breaches it recorded last year, roughly 93% of all records breached came from the financial sector. The company also says that nine out of every 10 of these breaches involved “groups identified by law enforcement as engaged in organized crime.” Verizon says that the 285 million electronic records breached last year were more than the total number of records breached in the past four years combined. The reason for the sharp increase is that attacks on financial firms’ networks have become more sophisticated and successful, the company says. Although only 17% of the attacks studied by Verizon constituted “highly sophisticated” data breaches, these attacks were responsible for 95% of all records breached. Verizon says that cybercriminals are targeting financial service companies’ networks to get customers’ personal identification number (PIN) information in order to withdraw cash directly from their accounts. Cybercriminals are also selling PIN information on the black market, the company says. Read the full report on data breach. (Scroll down when you see “285″). Technorati Profile

Are you one of the 9 million Americans who will have their credit damaged or their bank account emptied this year? Or perhaps your medical treatment will be affected. The cost of identity theft to individuals and businesses is staggering; hence, the Red Flag Rule, enforced by the FTC, federal bank regulatory agencies and the National Credit Union Administration.

There are always “red flags” that pop into our heads but too often we ignore them.  Call it “intuition” or whatever you want; the vital thing is to pay attention.  To that end, many businesses and organizations are now required to implement the “Red Flags” Rule to implement a written Identity Theft Prevention Program.  The goal is to detect warning signs in day-to-day operations, take steps to prevent the crime and limit any damage.

Are you covered by the Red Flags Rule? Read Fighting Fraud with the Red Flags Rule: A How-To Guide for Business to:

• Find out if the rule applies to your business or organization;
• Get practical tips on spotting the red flags of identity theft, taking steps to prevent the crime, and mitigating the damage it inflicts; and
• Learn how to put in place your written Identity Theft Prevention Program.

By identifying red flags in advance, you’ll be better equipped to spot suspicious patterns when they arise and take steps to prevent a red flag from escalating into a costly episode of identity theft.