Affixing a dollar costto a problem has immense benefit, and The Ponemon Institute goes to great lengths to arrive at the figures for its Annual Cost of a Data Breach Study.We painstakingly analyzed the financial impact a data breach has on a company by examining 43 different companies from a cross section of industries,all of which experienced a significant data breach affecting a range of data records representative of the norm. And knowing that a data breach may cost your company $6.65 million dollars may be all the information that is needed fora company to assign an appropriate budget to those tasked with information security.In 2008 the average total cost of a data breach was $6.65 million, up from $6.35 million last year and $4.54 in 2005.In 2008, the per-victim cost of a data breach was $202, up from $197 in 2007, and from $138 when the study was launched in2005.Breaches involving a third party to which data had been outsourced bore a per-victim cost of $231, whereas self … [Read more...] about Costs of a Data Breach: Can You Afford $6.65 Million?
Data breach study
Most companies only learn about network data breaches in the months after their data has already been compromised, according to a new study.The study, conducted by Verizon Business, looks at data breaches in a wide variety of industries, such as retail, food and beverage, technology services, and financial services, and examines more than 500 forensics investigations comprising roughly 230 million records over a period of four years.Looking at the big picture, the study finds that three-fourths of all data breaches lead to compromised data within a matter of days. Despite this, the study also finds that 63 percent of enterprises don't learn about data breaches until months after their data has been compromised. What's more, 70 percent of all data breaches are discovered by third parties, such as customers or banks, meaning that most companies have no idea that their data has been compromised until they are alerted by an outside voice.And even after breaches are … [Read more...] about Most data breaches discovered too late, study says
The average cost of a data breach to an Australian enterprise increased from A$2.16 million in 2011 to $2.72 million last year, according to the Ponemon Institute's 2013 Cost of Data Breach Study.[ALSO: The worst data breaches]The study, which was sponsored by Symantec, examined the costs incurred by 21 Australian companies who were subjected to data breaches.According to the report, 43 per cent of Australian organisations indicated that the cause of the breach was a malicious attack. This increased from 36 per cent in 2011.Thirty-three per cent of breaches involved negligent employees or contractors while 24 per cent indicated that the compromise was due to IT and business process failures.However, the study also found that fewer Australian customers are abandoning the organisation following the breach. Customer churn rates decreased from 3.4 per cent in 2011 to 2.9 per cent last year."Despite declining churn, certain industries, such as financial, service companies and technology are … [Read more...] about Data breach costs rise again: report
The American public has become so inured to data breaches that it’s difficult to remember them all. Infamous breaches like the ones at Target and Sony become almost forgettable when confronted with the recently disclosed half-billion accounts compromised at Yahoo in 2014.The numbers are simply staggering. It is estimated over 900,000,000 records of personally identifiable information (PII) have been stolen in the U.S. over the past few years. Keeping a memory of all the hacks and when they happened may require the use of complex data visualization.But while the public memory of these events may be fuzzy, the cost for the organizations involved is not. When a data breach happens, executives lose their jobs and billion-dollar mergers are put in jeopardy. And the underlying reason these drastic steps occur is because data breaches cost organizations enormous sums of money to fix.Given the large numbers involved, it can seem a challenge to attempt to calculate the total price tag of … [Read more...] about How much does a data breach actually cost?
The bad news is that data breaches are becoming ever more common. The worse news is that the cost they represent for companies is going through the roof.Those are two conclusions from a study released Wednesday by IBM Security and the Ponemon Institute, which found that the average cost of a data breach has grown to US $4 million. That's a hefty jump compared with last year's $3.79 million, and it represents an increase of almost 30 percent since 2013."Data breaches are now a consistent 'cost of doing business' in the cybercrime era," said Larry Ponemon, chairman and founder of the Ponemon Institute, a research firm focused on security. "The evidence shows that this is a permanent cost organizations need to be prepared to deal with and incorporate in their data protection strategies.”The annual Cost of a Data Breach study examines both direct and indirect costs to companies in dealing with a single data breach incident. Based on in-depth interviews with nearly 400 companies … [Read more...] about Cost of a data breach: $4 million. Benefits of responding quickly: Priceless.
The average organizational cost of data breaches has decreased for the first time in seven years, according to a study released by Symantec and the Ponemon Institute on Tuesday.In 2011 the average cost of a data breach was US$5.5 million, 24 percent less than in 2010, according to the 2011 edition of the annual "U.S. Cost of a Data Breach" study. The cost per compromised record has also decreased, by 10 percent, and stands at $194.BY THE NUMBERS: The impact of data breachesThe study's results are based on information collected from 49 U.S. companies spanning 14 industry sectors that experienced data breaches last year.Catastrophic data breaches resulting in over 100,000 compromised records have been excluded from the study because they could have skewed the results, said Larry Ponemon, the chairman and founder of the Ponemon Institute.The most important category from a cost perspective is that of so-called "lost business" costs. This includes abnormal turnover of customers, increased … [Read more...] about Cost of data breaches falls for first time in seven years
Organisations should be aware that dealing with a breach is becoming an increasingly costly endeavour, according to Symantec.The caution comes by the way of Symantec's recent 2011 Cost of Data Breach Study, which has found that the average cost of a data breach reported by Australian organisations has maintained an upward trend for the third year in a row.For Symantec Pacific director of specialist solutions, Sean Kopelke, the increase in the overall cost of data breaches is significant when it is broken down into the two levels of cost per record and the overall total cost to an organisation."Both of them went up, with cost per record going from $128 to $138 in 2011, and total cost going from $2 million in 2010 to $2.16 million in 2011," he said.What Kopelke found interesting about this result was that the numbers in overseas regions such as the US. have "flatlined or gone down.""In Australia, organisations still spend a lot of their expenses in post-breach, such as mitigating the … [Read more...] about Cost of data breaches in Australia going up, criminal attacks to blame: Symantec
While data breaches born of malicious attacks grab headlines, more data thefts are caused by employee negligence and computer glitches, according to a report this week by Symantec and the Ponemon Institute.Almost two-thirds of data breaches in 2012 could be attributed to negligence or human error (35%) and system glitches (29%), reported the eighth annual Ponemon Global Cost of a Data Breach study.However, malicious attacks remain the single highest cause of breaches, with 37% of the intrusion pie.Those figures vary by nation, the report showed. For example, Germany had an almost even split between malicious attacks (48%) and negligence/glitches (52%). By comparison, more than three-quarters of the breaches (77%) in Brazil were blamed on human error-system failures. [See also: Researchers find Java users woefully tardy on patching"Data breaches normally aren't about bad people," Larry Ponemon, founder and chairman of the institute that bears his name, said in an interview. "It's … [Read more...] about Negligence and Glitches Create 64% of Data Breaches
What are the real world risks of a cyber security breach to CEOs and their company? We will explore the issues of reputational damage, incident cost, stock price impact, and increased regulatory attention. We will also discuss the fate of four CEOs who have faced cybersecurity breaches in the past three years.According to Warren Buffet, "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." The “2015 Cost of Data Breach Study: Global Analysis” from the Ponemon Institute shows that companies suffer a higher churn rate, increased customer acquisition costs, reputation losses and diminished goodwill due to an information security breach.The 2015 Information Security Breaches Survey, conducted by PwC states. “When asked what made a particular incident ‘the worst’, 16 out of the 39 organisations who responded cited that it was the damage to their reputation which had the greatest impact. … [Read more...] about Data breaches often result in CEO firing
It cost U.S. companies hit by data breaches last year an average of $5.4 million to cope with the after-effects up 9% from the year before, according to the ninth annual Ponemon Institute study published Monday.On average, it cost $201 per record lost, up from the $188 the year before, based on Ponemon's analysis of costs from the loss or theft of personal data incurred by 61 U.S.-based organization in more than two dozen industry sectors. Ponemon's "2014 Cost of Data Breach Study: United States" concludes that the main reason for the steep increase in costs is "the loss of customers following the data breach due to additional expenses required to preserve the organization's brand and reputation." + ALSO ON NETWORK WORLD DeRodes steps into breach as Target's new CIO | Worst data Breaches of 2014...So Far (Q1) +Ponemon's IBM-sponsored research included interviews with over 500 individuals directly involved at the victimized companies and government agencies. In 2013, there appeared to … [Read more...] about Data Breaches 9% More Costly in 2013 Than Year Before