The 2006 average was $182 per compromised record, including the cost of detection, escalation, notification, and follow-up help to victims. The Ponemon Institute's 2005 study cited a figure of $132 per record.
Data breaches are expensive, averaging $4.7 million per incident, and they're becoming even more costly.
These are some of the findings of the Ponemon Institute's "2006 Cost of Data Breach Study," released today.
Based on 31 real data losses, the study finds a vast disparity in the financial impact of breaches and the amount spent on remediation. Given an average cost of $4.7 million per breach--an average loss of 26,000 records at a cost of $182 per record--companies spent only $180,000 on preventing future data losses. Of the $4.7 million cost, about $2.5 million reflects the cost of lost business.
The cost of losing data rose from 2005 to 2006. The 2006 average was $182 per compromised record. The Ponemon Institute's 2005 study cited a figure of $132 per record. These figures include the cost of detection, escalation, notification, and follow-up help to victims.
The study concludes that the "most salient costs result from the diminishment of confidence and trust in the company, which translates into abnormal or unexpected customer turnover. Our work supports the notion, 'an ounce of prevention is worth a pound of cure.'"
The study was sponsored by PGP Corporation and Vontu Corporation, security technology companies that stand to benefit from the findings if businesses decide to invest in an ounce of prevention.
The Ponemon Institute characterizes itself as an organization "dedicated to advancing responsible information and privacy management practices in business and government." To help meet those goals, Ponemon says it conducts "independent research and education that advances responsible information and privacy management practices within business and government."
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Infographic: The State of DevOps in 2017Is DevOps helping organizations reduce costs and time-to-market for software releases? What's getting in the way of DevOps adoption? Find out in this InformationWeek and Interop ITX infographic on the state of DevOps in 2017.
2017 State of IT ReportIn today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.