PwC Warns Internal Auditors Need to Do More for IT Security

By Kalen Smith, Big4 Blogger

A new report from PwC states that companies are relying too heavily on external auditors to identify security risks. The report said that companies are going to need to invest more heavily in conducting their own internal audits.

PwC has documented evidence showing that cyber-crime is becoming increasingly prevalent throughout the world. Hackers are refining their techniques and are posing greater threat to multinational businesses.

PwC data shows that the digital security breaches have already surpassed those seen in all of 2011. Data thefts have increased approximately 30% annually over the past two years. The report said that many of these crimes could have been prevented if firms took reasonable precautions.

Companies are spending more money to implement more effective solutions to enforce cyber-security. However, they rarely require someone to oversee that these policies are being enforced. This raises many concerns as companies store greater amounts of data on their customers and employees. Additionally, companies are spending more time online and transmitting data through mobile applications. This greatly increases the likelihood that their data will be compromised.

Data security failures can cost businesses tens of millions of dollars in fines, legal costs, lost customers and compromised trade secrets.