Reporting Security Incidents: How Security Awareness Drives Success

Cyber threats are constant, and delayed incident reporting can be costly. Keepnet research shows that companies take an average of 197 days to detect a breach and another 69 days to contain it, leading to losses of $4.35 million on average (Source).

Quick and accurate reporting is the backbone of risk mitigation, helping organizations minimize financial damage, uphold their reputation, and stay compliant with regulations. But effective reporting depends on security awareness—employees must be trained to identify threats and act swiftly.

This guide explores why timely reporting matters, how security awareness improves response times, and how organizations can build a strong security culture to enhance incident reporting.

What Are Security Incidents?

A security incident is any event that threatens an organization’s confidentiality, integrity, or availability. Common examples include:

• Phishing attacks – Fraudulent emails tricking employees into revealing credentials.
• Malware infections – Malicious software compromising systems.
• Insider threats – Employees misusing access for personal or external gain.
• Data breaches – Unauthorized access exposing sensitive information.

A well-trained workforce is key to detecting these threats early. Organizations using Security Awareness Training empower employees to recognize and report threats proactively, reducing response times and minimizing damage.

Why Reporting Security Incidents Is Important?

Failing to report security incidents promptly can turn small breaches into major cybersecurity crises. Here’s why timely reporting is critical:

• Damage Mitigation: Early reporting helps contain threats like ransomware before they spread and cause widespread damage.
• Legal Compliance: Laws such as the US Cyber Incident Reporting for Critical Infrastructure Act (2022) require incidents to be reported within 72 hours, with non-compliance leading to legal penalties.
• Contractual Obligations: Many business agreements mandate timely breach reporting. Failure to comply can result in contract terminations and legal disputes.
• Stronger Security Policies: Each reported incident provides valuable data that helps organizations refine their cybersecurity strategies and strengthen defenses.
• Regulatory Compliance: Regulations like GDPR impose strict reporting deadlines, and failure to comply can result in multi-million-dollar fines.
• Reputation Protection: Transparent reporting builds trust with customers, partners, and regulators, helping organizations maintain credibility.

Without security awareness training, employees may fail to recognize threats, delaying reports and increasing financial and operational risks.

Key Statistics from Trusted Sources

Recent data underscores the critical role of security awareness in effective incident reporting and breach containment:

• The Cost of a Data Breach: The IBM Cost of a Data Breach Report 2024 found that the global average cost of a data breach has risen to $4.88 million, marking a 10% increase from the previous year. (IBM)
• Detection and Containment Time: The same IBM report highlights that breaches involving compromised credentials take an average of 292 days to detect and contain, significantly increasing the financial and operational impact. (IBM)
• The Growing Threat from Insiders: Insider threats remain a major risk, with over 34% of businesses worldwide impacted by insider-related security breaches every year. (TechJury)
• Underreporting of Insider Attacks: Studies show that more than 70% of insider threat incidents go unreported externally, leaving businesses vulnerable to repeated breaches and regulatory penalties. (TechJury)

These statistics emphasize the importance of robust security awareness programs and structured reporting mechanisms to reduce breach detection time, minimize financial losses, and address both external and insider threats effectively.

Real Examples of Reported Incidents in 2024

Recent cyber incidents highlight the critical role of timely security reporting in minimizing damage and preventing further exploitation.

Change Healthcare Ransomware Attack (February 2024)

In February 2024, Change Healthcare, a key provider of payment and clinical data exchange services, suffered a ransomware attack that disrupted medical transactions across the U.S. healthcare system. The attackers exploited vulnerabilities in the company’s IT infrastructure, crippling operations for weeks and exposing sensitive data of over 100 million individuals.

While Change Healthcare ultimately reported the breach, delays in detection and disclosure intensified the impact, leading to financial losses and operational disruptions. The incident reinforced the need for proactive monitoring and swift reporting to mitigate widespread damage.

U.S. Telecommunications Breach by Salt Typhoon (November 2024)

In November 2024, a cyber-espionage group known as Salt Typhoon, linked to Chinese state-sponsored actors, infiltrated at least eight U.S. telecommunications providers, including Verizon and AT&T. The attackers exploited security gaps in telecom networks, gaining access to call data, wiretapping systems, and private communications.

Security teams detected unusual activity, but delays in reporting allowed the breach to persist for months, increasing the risk of espionage and data theft. This case highlighted the importance of immediate incident reporting in preventing national security threats. (Wired)

These incidents demonstrate that swift detection and reporting to relevant authorities can help contain cyber threats, reduce financial and reputational damage, and prevent prolonged exploitation.

Penalties for Not Reporting Incidents

Failing to report security incidents on time can result in significant fines, regulatory actions, and reputational damage, as shown in these real-world cases:

Intercontinental Exchange (ICE) Fine (May 2024)

In May 2024, the U.S. Securities and Exchange Commission (SEC) fined Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, $10 million for failing to report a cyber intrusion. The breach, caused by a VPN vulnerability, was identified in April 2021, but ICE delayed notifying the SEC, violating Regulation SCI. This case underscores the importance of timely breach disclosure to avoid regulatory penalties. (SEC)

Twitch Data Breach Fine in Turkey (November 2024)

In November 2024, Turkey’s Personal Data Protection Board (KVKK) fined Amazon’s Twitch 2 million lira ($58,000) for a data breach exposing 35,274 individuals in Turkey. Twitch failed to implement proper security measures and delayed reporting the breach, leading to regulatory action. This case highlights the consequences of poor security controls and late incident disclosure. (Reuters)

These cases demonstrate that delayed reporting can lead to financial losses, legal consequences, and damaged credibility, reinforcing the need for strong security policies and immediate breach disclosure.

Incident Response Plans for Organizations of All Sizes

Every organization, regardless of size, needs a clear incident response plan to detect, contain, and recover from security incidents effectively. A well-structured plan minimizes damage, ensures compliance, and speeds up recovery. Here are three key resources to help businesses of all sizes build one:

• NCSC Cyber Incident Response (UK): The UK’s National Cyber Security Centre (NCSC) provides step-by-step guidance on handling incidents, covering detection, containment, eradication, and recovery. Small and large businesses in the UK can also work with NCSC-assured response providers for expert assistance. (NCSC)
• CISA Cybersecurity Playbooks (US): The Cybersecurity and Infrastructure Security Agency (CISA) offers standardized incident response playbooks for both small businesses and large enterprises, ensuring a consistent and effective approach to cybersecurity incidents. (CISA)
• NIST SP 800-61 (Global Standard): The National Institute of Standards and Technology (NIST) provides a comprehensive framework for preparing, detecting, containing, and recovering from cyber incidents. It is widely used by organizations of all sizes, from startups to multinational corporations. (NIST)

Using these resources, businesses can develop a structured, scalable response strategy to limit the impact of cyber threats and maintain compliance with security regulations.

The Role of Security Awareness and Culture Program in Reporting Incidents

A strong security culture ensures employees report incidents promptly without fear or hesitation. Here’s how to create an environment that supports proactive reporting:

• Train Employees on Reporting: Employees must learn to identify and report threats like phishing, malware, and insider risks. Security Awareness Training and phishing simulations reinforce these skills.
• Encourage a Reporting Mindset: Foster a blame-free culture where employees feel safe reporting incidents. Recognize and reward proactive reporting. Read more on creating a positive cybersecurity culture.
• Leverage Automated Incident Response: Use Incident Responder to analyze, identify, and respond to email threats 48.6 times faster, improving security and minimizing damage.

A culture that prioritizes security awareness strengthens both incident reporting and overall cyber resilience. To learn more, read Keepnet’s guide on Building a Security-Conscious Corporate Culture: A Roadmap for Success.

8. How to Report Security Incidents

A clear reporting process ensures security threats are addressed quickly and effectively. Follow these steps:

1. Identify the Incident: Watch for unusual system activity, phishing emails, unauthorized access, or data leaks.
2. Document Key Details: Record the time, type, and impact of the incident for investigation.
3. Notify Your Security Team: Inform your IT or cybersecurity team immediately to begin mitigation.
4. Follow Response Protocols: Use your organization’s incident response plan to manage and contain the threat.
5. Report to Authorities: If required, notify regulators or law enforcement such as FBI IC3, NCSC, or GDPR authorities within the mandated timeframe.

For phishing-specific incidents, refer to Keepnet’s Comprehensive Guide on Reporting Phishing Emails.

Why Fast Incident Reporting Matters

Reporting security incidents quickly helps businesses avoid financial losses, protect sensitive data, and meet legal requirements. Delayed or unreported incidents can lead to heavy fines, reputational damage, and prolonged cyber threats.

Creating a security-aware culture, providing simple reporting processes, and using automated response tools help organizations detect and stop threats before they spread. Encouraging employees to report incidents without fear makes security stronger for everyone.

For a smarter, faster approach to security incident management, explore Keepnet’s Extended Human Risk Management Platform—designed to help businesses identify, report, and respond to threats efficiently.