The Ponemon Institute just released its 5th annual “Cost of a Data Breach” study. They report that in the 45 organizations they analyzed for their study, the average cost to deal with a data breach was $6.7 million. That is a significant amount of money especially in an economy like we have today.
Although the “per victim cost” only increased from $202 to $204 since last year, if you multiple that by the number of records affected, it could be a significant amount of money.
In an interview with Tom Field, Editorial Director of Bank Info Security, Dr. Larry Ponemon, the chairman and founder of the Ponemon Institute discusses these hard costs as well as the soft costs, such as brand impact, turnover and customer loyalty, and how they can negatively impact a company.
Dr. Ponemon explains that the three broad categories that are at the root of the data breaches are negligence, systems glitches and malicious and criminal attacks. He also talks about ways to reduce the cost burden, such as implementing good governance processes.
Check out the article and think about whether your organization can afford taking the risk of a data breach.