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New Research Reveals Wide Gap between Perception and Reality of Perimeter Security Effectiveness

- While 87% of IT decision-makers feel their organization’s perimeter security is effective at keeping out security threats, 30% of IT decision-makers admit their company has fallen victim to a data breach
- 33% think unauthorized users are still able to access their networks and 34% are not confident in the security of their organization’s data should a breach occur
- 90% of organizations that experienced data breaches suffered negative commercial consequences as a result

April 15, 2015

Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, has today released the latest findings of the 2015 Data Security Confidence Index (DSCI). The report reveals a widening gap emerging between the perception and the reality of perimeter security effectiveness amongst global IT decision makers. The research shows increasing levels of investment in this area of data protection, despite an exponential growth in the number of data breaches.

Investments in Breach Prevention Rise Despite Increased Breaches of Perimeter Security

The number of global data breaches continues to increase - according to Gemalto’s Breach Level Index (BLI), more than 1,500 data breaches led to one billion data records compromised in 2014 alone, a 49% increase in data breaches and a 78% increase in data records stolen or lost compared to 2013. Despite this the DSCI research shows that almost nine out of ten (87%) IT decision makers feel their organization’s perimeter security systems are effective at keeping out unauthorized users. The study shows that IT decision makers are looking to further increase their investment in perimeter security with 64% looking to do so in the next 12 months. Interestingly, when thinking of the most recent breaches, the average amount of breached data protected by encryption was below 8%, highlighting the need for a more robust data protection strategy.

Low Confidence in Ability to Prevent Breaches and Unauthorized User Access Nevertheless, a third (33%) believe unauthorized users are still able to access their networks and a further 34% are not confident in the security of their organization’s data, should a breach occur. In fact, the DSCI survey reveals that as a result of recent high profile breaches, 71% of organizations have adjusted their security strategy, but are still focused on perimeter security. Adding to the confusion, nearly three quarters of IT decision makers (72%) stated that their investment in perimeter security has increased over the past five years, though 30% admitted that in the past 12 months their company has been victim to a breach, showing the need to approach security differently. Although high-profile data breaches have driven over seven in 10 (71%) organizations to adjust their security strategy, more than three in five (62%) respondents are no more confident than they were this time last year in the security industry’s ability to detect and defend against emerging security threats.

"With the number of sophisticated breaches on the rise, relying on perimeter security systems alone is no longer enough. Traditional security staples such as firewalls and anti-virus should be part of a much greater security strategy. IT decision makers need to take into account that if someone is motivated enough they will breach a network, no matter how well it is protected," said Tsion Gonen, Vice President of Strategy for Identity and Data Protection at Gemalto.

Commercial Impacts of Data Breaches

As a result of these attacks, nine out of 10 organizations (90%) suffered negative commercial consequences, including delays in product or service development (31%), decreased employee productivity (30%), decreased customer confidence (28%), and negative press (24%). This highlights the severe consequences of data breaches, which can be damaging both to an organization’s reputation and bottom line, as well as to customers’ confidence in entire industry sectors.

"Organizations still place too much emphasis on perimeter security, even though it has proven to be ineffective", added Gonen. "Decision makers should place greater importance on customer data, and look to adopt a ‘secure the breach’ approach that focuses on securing the data after intruders penetrate the perimeter defenses. This means they need to attach security directly to the data itself using multi-factor authentication and data encryption, as well as securely managing encryption keys. That way, if the data is stolen, it is useless to the thief."

For a full summary of data breach incidents by industry, source, type and geographic region, download the 2014 Breach Level Index Report.

Related Resources


About the Data Security Confidence Index

The research conducted by Vanson Bourne on behalf of Gemalto polled more than 900 individuals across the U.S., UK, Europe, Middle East and Asia-Pacific. Respondents were comprised of security and IT executives across various verticals, including financial services, healthcare, manufacturing, the public sector, telecommunications, utilities, retail, construction, insurance, legal and more. The full report can be found here.

About Gemalto’s Identity and Data Protection Solutions

Through its acquisition of SafeNet, Gemalto offers one of the most complete portfolios of enterprise security solutions in the world, enabling its customers to enjoy industry-leading protection of digital identities, transactions, payments and data – from the edge to the core. Gemalto’s complete portfolio of SafeNet Identity and Data Protection solutions enable enterprises across many verticals, including major financial institutions and governments, to take a data-centric approach to security by utilizing innovative encryption methods, best-in-class crypto management techniques, and strong authentication and identity management solutions to protect what matters, where it matters. Through these solutions, Gemalto helps organizations achieve compliance with stringent data privacy regulations and ensure that sensitive corporate assets, customer information, and digital transactions are safe from exposure and manipulation in order to protect customer trust in an increasingly digital world.

About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security with 2013 annual revenues of €2.4 billion and more than 12,000 employees operating out of 85 offices and 25 research and software development centers, located in 44 countries.

We are at the heart of the rapidly evolving digital society. Billions of people worldwide increasingly want the freedom to communicate, travel, shop, bank, entertain and work – anytime, everywhere – in ways that are enjoyable and safe. Gemalto delivers on their expanding needs for personal mobile services, payment security, authenticated cloud access, identity and privacy protection, eHealthcare and eGovernment efficiency, convenient ticketing and dependable machine-to-machine (M2M) applications. We develop secure embedded software and secure products which we design and personalize. Our platforms and services manage these products, the confidential data they contain and the trusted end-user services made possible.

Our innovations enable our clients to offer trusted and convenient digital services to billions of individuals. Gemalto thrives with the growing number of people using its solutions to interact with the digital and wireless world.

For more information visit,,, or follow @gemalto on Twitter.

Gemalto Media Contacts:

Chad Couser
Director, Corporate Communications
(443) 327-1315

Anina Steele
EMEA Communications Manager
+44 1276608055

About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security, with 2015 annual revenues of €3.1 billion and customers in over 180 countries. We bring trust to an increasingly connected world.

Our technologies and services enable businesses and governments to authenticate identities and protect data so they stay safe and enable services in personal devices, connected objects, the cloud and in between.

Gemalto’s solutions are at the heart of modern life, from payment to enterprise security and the internet of things. We authenticate people, transactions and objects, encrypt data and create value for software – enabling our clients to deliver secure digital services for billions of individuals and things.

Our 14,000+ employees operate out of 118 offices, 45 personalization and data centers, and 27 research and software development centers located in 49 countries.

For more information visit, or follow @gemalto on Twitter.


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