# Reporting Security Incidents: How Security Awareness Drives Success

Source: https://keepnetlabs.com/blog/reporting-security-incidents-how-security-awareness-drives-success
Published: 2025-02-28
Updated: 2026-10-13
Author: Ozan Ucar, Founder and CEO of Keepnet
Category: Security Incident Reporting

> On average, companies take 197 days to detect a breach and 69 days to contain it, costing $4.35 million. Strong security awareness and fast incident reporting can drastically reduce these risks. Learn how to build a proactive reporting culture and strengthen cybersecurity.

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](https://keepnetlabs.com/products/incident-responder)).

**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](https://keepnetlabs.com/products/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](https://www.ibm.com/reports/data-breach))
- **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](https://www.ibm.com/reports/data-breach))
- Insider-related incidents are difficult to contain when staff do not know what to escalate, who to contact, or how quickly a suspicious action should be reported. That is why reporting guidance must be simple, rehearsed, and visible.
- Insider-related incidents are difficult to contain when staff do not know what to escalate, who to contact, or how quickly a suspicious action should be reported. That is why reporting guidance must be simple, rehearsed, and visible.

These statistics emphasize the importance of **robust** [security awareness programs](https://keepnetlabs.com/products/security-awareness-training) 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](https://www.wired.com/story/worst-hacks-2024))

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](https://www.sec.gov/newsroom/press-releases/2024-63))

### 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](https://www.reuters.com/technology/turkey-fines-amazons-twitch-2-mln-lira-data-breach-2024-11-16/))

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](https://www.ncsc.gov.uk/collection/small-business-guidance--response-and-recovery))
- **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](https://www.cisa.gov/sites/default/files/2024-08/Federal_Government_Cybersecurity_Incident_and_Vulnerability_Response_Playbooks_508C.pdf))
- **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](https://csrc.nist.gov/pubs/sp/800/61/r2/final))

Using these resources, businesses can **develop a structured, scalable response strategy** to limit the impact of cyber threats and maintain compliance with security regulations. When implementing these plans, choosing the right incident management platform is also crucial, and a comparison between [Zenduty vs PagerDuty](https://zenduty.com/zenduty-the-best-pagerduty-alternative-compare/) can help teams decide which tool best supports their response workflow

## 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](https://keepnetlabs.com/products/security-awareness-training) 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](https://keepnetlabs.com/blog/how-to-build-a-strong-security-culture).
- **Leverage Automated Incident Response**: Use [Incident Responder](https://keepnetlabs.com/products/incident-responder) to **analyze, identify, and respond to email threats 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](https://keepnetlabs.com/blog/how-to-build-a-strong-security-culture).

## 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](https://keepnetlabs.com/blog/email-incident-response-101).

## 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 platform for human risk management and secure behaviour management](https://keepnetlabs.com/), designed to help businesses**identify, report, and respond to threats efficiently**.

***Editor's Note: This article was updated on March 12, 2026***.

## What Better Program Design Looks Like

Reporting Security Incidents: How Security Awareness Drives Success works best when the content reflects how people actually make decisions. Strong programs do not try to teach everything at once. They focus on the few behaviors that create the most risk, then reinforce them with current examples, timely reminders, and clear reporting paths.

That is also what makes training easier to defend internally. When a program changes behavior, reduces repeat-risk patterns, or improves reporting quality, leaders can see how awareness supports real business outcomes instead of acting like a standalone compliance activity.

Keepnet teams usually see the biggest gains when training is tied to a reporting path and a follow-up workflow. For most organizations, the common mistake is treating reporting security incidents: how security awareness drives success as content delivery instead of behavior design.

### Program Checklist

- Choose the user decisions that matter most instead of covering every possible topic.
- Use short modules, current examples, and realistic follow-up after incidents or simulations.
- Measure reporting, repeat risk, and remediation behavior, not only completions.
- Give managers and team leads a role in reinforcing the habits you want to build.

## Frequently Asked Questions

### What counts as a security incident?

Any event that threatens the confidentiality, integrity or availability of information. That includes suspected phishing, lost devices, unauthorised access, malware alerts and data sent to the wrong recipient, whether or not damage is confirmed.

### Why does reporting speed matter so much?

Because the cost of an incident grows with the time it stays unknown. Everything a responder can do, from revoking a session to removing a message from other mailboxes, works better in the first hour than in the second day.

### Who should employees report to?

Whatever route the organisation has made fastest, and there should be only one. Multiple channels create hesitation, and hesitation is the expensive part.

### What stops people from reporting?

Fear of blame, uncertainty about whether it is worth reporting, and a process that takes too long. All three are fixable, and the first is the most damaging because it teaches silence.

### Are there penalties for not reporting incidents?

For regulated data, yes. Notification obligations carry deadlines that begin when the organisation becomes aware, which is another reason internal reporting speed matters beyond the technical response.

### How does awareness training improve reporting?

It gives people the pattern to recognise and permission to act. A reporting button turns the workforce into a detection layer, which is significant because the human element appeared in 62% of breaches in the 2026 Data Breach Investigations Report (Verizon, 2026 Data Breach Investigations Report, 2026, p. 12).