Attacks/Breaches
2/2/2009
06:51 PM
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Data Loss Costing Companies $6.6 Million Per Breach

Customers, it seems, lose faith in organizations that can't keep data safe and take their business elsewhere, a Ponemon Institute survey found.

The total average cost of a data breach last year reached $202 per record, a 2.5% increase since 2007, a study published Monday revealed.

The study was conducted by the Ponemon Institute, a privacy and data-protection research group, and PGP, a data-encryption vendor. It was based on the costs incurred by 43 organizations following actual data breaches.

According to the report, the total average cost per company surveyed was more than $6.6 million per breach, up from $6.3 million in 2007 and $4.7 million in 2006. The highest reported total cost among the 43 respondent organizations was $32 million.

Of the average $202 per record cost, $139 was attributable to lost businesses as a result of the breach. As a percentage of the total cost per record, that represents 69%, which is up from 67% in 2007 and 54% in 2006. Customers, it seems, lose faith in organizations that can't keep data safe and take their business elsewhere.

"This finding reinforces the message delivered by leading enterprise IT managers and industry analysts that organizations must focus on proactively protecting their data instead of relying exclusively on written policies, procedures, and training," the report says.

Of particular note for many organizations will be the finding that third-party data breaches have become more common and that they cost more than internal breaches. Breaches that originated with outsourcing companies, contractors, consultants, and business partners accounted for 44% of the breach total, up from 40% in 2007. Third-party breaches cost an average of $231 per record, compared with $179 for breaches originating from within the organization that owns the data.

At the same time, it's insider negligence that's the biggest cause of breaches. According to the study, more than 88% of the breaches studied in 2008 arose from an insider's mistakes. At least such breaches tend to be less expensive, at $199 per record, than breaches arising from malicious acts, at $225 per record.

In terms of preventive measures, the top three employed by respondents were training programs, additional manual procedures or controls, and the expanded use of encryption. PGP, as it happens, sells encryption products and services to businesses.

Long viewed as more trouble than it was worth, encryption may finally have become a necessity. Heartland Payment Systems, which in mid-January disclosed a potentially massive data breach that could affect more than 100 million accounts, said just last week that it was accelerating its effort to deploy end-to-end encryption to protect its transaction data. Better late than never, but pre-breach deployment would have been better still.

Data-loss prevention products can protect your intellectual property from internal mishandling. InformationWeek has published an independent review of some of the leading products. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2015-1637
Published: 2015-03-06
Schannel (aka Secure Channel) in Microsoft Windows Server 2003 SP2, Windows Vista SP2, Windows Server 2008 SP2 and R2 SP1, Windows 7 SP1, Windows 8, Windows 8.1, Windows Server 2012 Gold and R2, and Windows RT Gold and 8.1 does not properly restrict TLS state transitions, which makes it easier for r...

CVE-2014-2130
Published: 2015-03-05
Cisco Secure Access Control Server (ACS) provides an unintentional administration web interface based on Apache Tomcat, which allows remote authenticated users to modify application files and configuration files, and consequently execute arbitrary code, by leveraging administrative privileges, aka B...

CVE-2014-9688
Published: 2015-03-05
Unspecified vulnerability in the Ninja Forms plugin before 2.8.10 for WordPress has unknown impact and remote attack vectors related to admin users.

CVE-2015-0598
Published: 2015-03-05
The RADIUS implementation in Cisco IOS and IOS XE allows remote attackers to cause a denial of service (device reload) via crafted IPv6 Attributes in Access-Accept packets, aka Bug IDs CSCur84322 and CSCur27693.

CVE-2015-0607
Published: 2015-03-05
The Authentication Proxy feature in Cisco IOS does not properly handle invalid AAA return codes from RADIUS and TACACS+ servers, which allows remote attackers to bypass authentication in opportunistic circumstances via a connection attempt that triggers an invalid code, as demonstrated by a connecti...

Dark Reading Radio
Archived Dark Reading Radio
How can security professionals better engage with their peers, both in person and online? In this Dark Reading Radio show, we will talk to leaders at some of the security industry’s professional organizations about how security pros can get more involved – with their colleagues in the same industry, with their peers in other industries, and with the IT security community as a whole.