Global Data Breaches Surge: Could Blockchain Be the Answer?
Some experts believe that blockchain security could be the answer to data breach prevention. Credit: Jaap Arriens/NurPhoto via Getty Images
Key Takeaways
- National Public Data has suffered a huge data breach.
- Organizations spent $188bn on cybersecurity globally in 2023, which is expected to grow to almost $215bn in 2024.
- Many experts believe Blockchain security could be the answer to preventing data breaches.
National Public Data (NPD), a company that resells collected personal data for background checks, confirmed that a massive data breach compromised 2.9 billion information records, including physical addresses, social security numbers, and names.
The massive breach of NPD, which could be the biggest in recorded history , sparked a class-action lawsuit as the leaked data continues to pose a risk of identity theft and fraud.
Data Breaches Are on the Rise, but So Is Cybersecurity Spending
The news comes as the number of reported data breaches in the US reached record highs in 2023, rising 78% from 2022 to a total of 3,205, according to Identity Theft Resource Center.
However, at the same time, companies and organizations around the globe are spending record amounts of capital on protecting themselves.
According to Gartner’s estimates , organizations spent $188bn on cybersecurity globally in 2023, which is expected to grow to almost $215bn in 2024.
So the question remains: why are so many data breaches occurring while companies spend increasing amounts of money to prevent them?
Some experts believe that blockchain security could be the answer to data breach prevention.
What Is Blockchain Security?
Blockchain security refers to the various mechanisms employed to safeguard data, transactions, and digital assets within a blockchain network.
The primary goal of blockchain security is to ensure data confidentiality and integrity, making it resistant to attacks, fraud, and unauthorized access.
Several companies across various industries have adopted blockchain technology to enhance their security and protect against data breaches.
For example, IBM’s Food Trust network uses blockchain to track food products’ journey from farm to table, ensuring the integrity and safety of data across the supply chain.
Is Blockchain Security the Complete Answer?
Blockchain security is often considered effective in mitigating data breaches due to its decentralized and transparent nature.
Markus Schaal, a tech expert and the Managing Director at PLITCH, said the recent breaches at CrowdStrike and NPD have highlighted the need for more robust security measures.
“I believe blockchain technology could be a game-changer in this regard,” Schaal said.
“Blockchain’s decentralized nature is its biggest strength against cyberattacks. Unlike traditional systems where data is stored in one place, blockchain spreads information across a network of computers.”
This means there is no single point of failure for hackers to target, Schaal explained, making it harder to compromise large amounts of data in one go.
Schaal believes companies should consider adopting blockchain as part of their security strategy. However, he stressed that blockchain is not “a magic solution to all cybersecurity problems.”
Jason Soroko, SVP of Product at cloud-based certificate management platform Sectigo, told CCN that blockchain technology is still susceptible to traditional cybersecurity attacks, such as phishing.
“On the blockchain, this is known as ‘ice phishing,’ a technique that doesn’t involve stealing one’s private keys, but rather entails tricking a user into signing a transaction that delegates approval of the user’s tokens to the attacker” Soroko said.“It is no longer enough to watch out for simple messages with the typical giveaways of crude spelling and wording.”
“Now context, content, and sender must all be considered, particularly if financial transactions on the blockchain are involved.”
