Costs of Data Breach: Benchmark Study Released


The Ponemon Institute and IBM have released their 2014 Cost of Data Breach Study for the U.S.  The notable results include:

  • Per record cost has increased from $188/record in 2013 to $201/record as of 2014
  • The indirect cost per record was $134/record; direct cost at $67/record (indirect=internal overhead; loss of brand value/reputation; customer “churn”)
  • 44% of those surveyed blamed breach on malicious or criminal attacks as compared to 31% blaming some human factor
  • Public sector and retail companies are more likely to have a breach (healthcare sector came in 8th place, financial sector in 10th place)
  • Healthcare industry had highest costs per capita ($316/record – authors cite regulation as factor)
  • Notification costs decreased
  • Companies are far more likely to have a small data breach than a mega breach

The authors also provide details regarding the factors that they found are influencing the costs – consultants engaged; mobile devices at issue; quick notification and the like.

For a copy of the report, go to: dataprivacyiStock_000019536561XSmall


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