{"id":11465,"date":"2022-06-02T07:00:00","date_gmt":"2022-06-02T15:00:00","guid":{"rendered":"https:\/\/formtek.com\/blog\/?p=11465"},"modified":"2021-08-30T08:25:48","modified_gmt":"2021-08-30T16:25:48","slug":"security-why-are-data-breaches-so-expensive","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/security-why-are-data-breaches-so-expensive\/","title":{"rendered":"Security:  Why are Data Breaches so Expensive?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Data breach costs have <a href=\"https:\/\/www.ibm.com\/security\/data-breach\" data-type=\"URL\" data-id=\"https:\/\/www.ibm.com\/security\/data-breach\">relentlessly be on the rise over the past years<\/a>.  For large companies the cost to remediate the effect of a data breach averages now into many millions of dollars, particularly in the US where the cost to remediate a data breach is the highest in the world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are both direct and indirect costs related to data breaches:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Direct Costs<\/strong><ul><li>Costs related to detecting and notifying affected parties of the incident<\/li><li>IT time spent resolving the breach<\/li><li>Sales revenue lost due to system downtime and business disruption<\/li><li>If a public company, a likely drop in stock price<\/li><li>Legal fees and costs of litigation<\/li><li>Possible financial theft<\/li><li>Fees to investigate root cause of the problem using forensics and auditing<\/li><li>Fees for public relations, help desk, and setting up post-breach response, like an emergency call center<\/li><li>Fees for providing credit monitoring services for customers<\/li><li>Penalties and Regulatory fines<\/li><li>Greater investment in security measures to avoid future incidents<\/li><\/ul><\/li><li><strong>Indirect Costs<\/strong><ul><li>Reputational damage<\/li><li>Loss of consumer trust<\/li><li>Missed business opportunities<\/li><li>Declines in productivity<\/li><li>Possible IP theft<\/li><li>Employees may leave the organization<\/li><\/ul><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.linkedin.com\/in\/charles-debeck-7648ba19\/\" data-type=\"URL\" data-id=\"https:\/\/www.linkedin.com\/in\/charles-debeck-7648ba19\/\">Charles Debeck<\/a>, senior threat analyst at IBM X-Force IRIS, <a href=\"https:\/\/www.csoonline.com\/article\/3434601\/what-is-the-cost-of-a-data-breach.html\" data-type=\"URL\" data-id=\"https:\/\/www.csoonline.com\/article\/3434601\/what-is-the-cost-of-a-data-breach.html\">said that<\/a> &#8220;we see an increasing divergence between organizations that take effective cybersecurity precautions versus orgs that don&#8217;t. This divergence has been increasing year over year; the organizations that are engaging in effective cybersecurity practices are seeing significantly reduced costs, the organizations that aren&#8217;t engaging in these same practices are facing significantly higher costs.\u201d<\/p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" alt=\"Digg This\" title=\"Digg This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.reddit.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/reddit.png\" alt=\"Reddit This\" title=\"Reddit This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.stumbleupon.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/stumbleupon.png\" alt=\"Stumble Now!\" title=\"Stumble Now!\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/buzz.yahoo.com\/buzz?targetUrl=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F&amp;headline=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/yahoo_buzz.png\" alt=\"Buzz This\" title=\"Buzz This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.dzone.com\/links\/add.html?title=&amp;url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/dzone.png\" alt=\"Vote on DZone\" title=\"Vote on DZone\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.facebook.com\/sharer.php?t=&amp;u=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/facebook.png\" alt=\"Share on Facebook\" title=\"Share on Facebook\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/delicious.com\/save?title=&amp;url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/delicious.png\" alt=\"Bookmark this on Delicious\" title=\"Bookmark this on Delicious\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.dotnetkicks.com\/kick\/?title=&amp;url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/dotnetkicks.png\" alt=\"Kick It on DotNetKicks.com\" title=\"Kick It on DotNetKicks.com\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/dotnetshoutout.com\/Submit?title=&amp;url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/dotnetshoutout.png\" alt=\"Shout it\" title=\"Shout it\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.linkedin.com\/shareArticle?mini=true&amp;url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F&amp;title=&amp;summary=&amp;source=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/linkedin.png\" alt=\"Share on LinkedIn\" title=\"Share on LinkedIn\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.technorati.com\/faves?add=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/technorati.png\" alt=\"Bookmark this on Technorati\" title=\"Bookmark this on Technorati\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/twitter.com\/home?status=Reading+https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/twitter.png\" alt=\"Post on Twitter\" title=\"Post on Twitter\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.google.com\/buzz\/post?url=https%3A%2F%2Fformtek.com%2Fblog%2Fsecurity-why-are-data-breaches-so-expensive%2F\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/google_buzz.png\" alt=\"Google Buzz (aka. Google Reader)\" title=\"Google Buzz (aka. Google Reader)\" \/><\/a><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Data breach costs have relentlessly be on the rise over the past years. For large companies the cost to remediate the effect of a data breach averages now into many millions of dollars, particularly in the US where the cost<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/formtek.com\/blog\/security-why-are-data-breaches-so-expensive\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-11465","post","type-post","status-publish","format-standard","hentry","category-security"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/11465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=11465"}],"version-history":[{"count":1,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/11465\/revisions"}],"predecessor-version":[{"id":11466,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/11465\/revisions\/11466"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=11465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=11465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=11465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}