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Security: Financial Cost of Data Breaches Continues to Soar
Data breaches continue to confound businesses. A new survey by Ponemon and sponsored by IBM finds that the cost of breaches continues to soar, up 29 percent from last year. Other findings from the report include:
- On average it takes 201 days to identify a breach and another 70 days to eliminate it.
- Breaches identified in less than 100 days have an average cost of $3.23 million, while breaches that take longer to find average $4.38 million in cost.
- The biggest cost of a data breach is lost business due to a loss of trust.
- The more regulation in the industry, the higher the costs. Healthcare and financial services have breaches that are the most expensive.
- Breaches due to criminal and malicious intent generally are the most difficult to identify.
Larry Ponemon, chairman and founder of the Ponemon Institute, said that “data breaches are now a consistent ‘cost of doing business’ in the cybercrime era,’. The evidence shows that this is a permanent cost organizations need to be prepared to deal with and incorporate in their data protection strategies.”
Daniel Miessler, director of advisory services for IOActive told SCMagazineUK.com that “the worst kind of reputation damage comes not from incidents, but from the appearance of incompetence or negligence. These are the feelings in customers or investors that can truly harm a company’s value over time as it relates to data breach. In short, breaches are not all the same, and therefore do not affect companies the same. And the difference is mostly about the response by the company and what that response says about the underlying health of their security.”
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[…] Read about the new survey by Ponemon Institute which reveals that the financial costs of data breach continue to soar on Formtek. […]
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[…] worse by not being proactive, responsive and transparent if and when a breach is exposed. (Source: Formtek). While the concepts of security and transparency generally don’t belong in the same sentence, in […]