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Security: The High Cost of Remedying Data Breaches
Your IT infrastructure has been breached. Now what? What are the implications? What are the costs?
Victims of data breaches will need to cough up a lot to remedy the loss. A study commissioned by IBM and conducted by Ponemon estimates that the costs involved as a result of a single data breach average more than $3.8 million. Dealing with a breach of 50 million records could cost as much as $350 million. The average breach in the US involves about 25 thousand records. About half of data breaches occur due to malicious hacking.
The Ponemon report identifies some of the costs involved with breaches:
- Discovery of breach; follow-up forensics; crisis team
- Notifying victims by emails, letters and phone
- Communication with regulators and outside experts
- Reduce pricing on products and services to retain customers
- Increase in Help Desk Support
- Legal fines
- Attempts to fix root cause of the breach
- Business disruption and lost revenue due to downtime
- Lost customers; reputations loss; loss of good will
