The cost of a data breach now averages over $7 million dollars!

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Did you know that the average cost of a data breach is $7.2 million dollars?

Or that the cost of each compromised record is $214, an increase of 7% over last year?

A data breach resulting in the loss or theft of protected personal data will have serious financial consequences on an organization – the least expensive breach reported in 2010 was $780,000 (and the most expensive one was over $35 million).  You can read more about the cost of data breaches in the Ponemon Institute’s 2010 U.S. Cost of Data Breach survey results.

Here are a few other key takeaways:

  • For the 5th year in a row, data breach costs have continued to rise
  • Lost business accounts for over 60% of data breach costs, the remaining amount is data breach detection, escalation, notification and response
  • Escalating data security threats and compliance pressures are driving rapid responses to data breaches, resulting in higher costs
  • Criminals now account for 31% of data breaches and they are significantly more expensive to contain and fix
  • Negligence remains the most common threat, and an increasingly expensive one

What is your organization doing to ensure the privacy and confidentially of your information, including when it’s sitting on your servers, being shared between systems and business partners, and shared between people?  And don’t spend all your time combating criminal threats…. Negligence now accounts for 41% of data breaches, you must safeguard against negligence too.

Go ahead, estimate the data breach risk to YOUR organization.  First, ballpark how many pieces of sensitive files and data are floating around your company today…. Then multiply that number by $214.  I’m sure you’ll agree that the ROI on the time, technology and resources spent to protect company data are well worth the investment and risk avoidance effort.

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