Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Attacks/Breaches

3/7/2011
06:09 PM
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Data Breach Costs Continue Climbing

Some of that cost may be unnecessary, a study has found.

The average cost of a data breach for a U.S. company continues to rise, having reached $7.2 million in 2010.

This represents an increase of 7% from 2009, when the average cost was found to be $6.8 million, according to Symantec which published "2010 Annual Study: U.S. Cost of a Data Breach," and the Ponemon Institute, which conducted the research.

The cost of losing data has grown for U.S. companies every year since 2006.

Larry Ponemon, founder of the Ponemon Institute, says that there was one unusual finding: A rapid response to a breach, which generally involves notifying everyone potentially affected, turns out to be more costly than a slow response.

Increasingly sophisticated data security threats and compliance pressures are pushing organizations to respond as rapidly as possible to data breaches. This is reflected in the finding that malicious attacks have become the most costly cause of breaches. But responding quickly to a breach may not be called for in every instance.

This isn't to say a slow response is always good; rather, it reflects the survey's finding that rapid notification can be a waste of money if subsequent investigation indicates some of those notified were not affected after all.

"In the world of data breaches, telling people your data is lost or stolen and then having to change that doesn't help anyone," said Ponemon in a phone interview.

Quick responders paid $268 per record, an increase of 22% from 2009, while organizations that took more time paid $174 per record, a decrease of 11% from 2009.

Symantec has created an online data breach calculator to help companies assess the potential cost and likelihood of a data breach. Not coincidentally, Symantec sells security solutions, particularly those focused on encryption.

Encryption has become more popular lately because data breach regulations often exempt companies from notification requirements if the lost data was encrypted.

This trend is partially reflected in the survey, which found: an increase in the number of organizations with an "above average IT security posture"; a decrease in breaches due to system failure, lost or stolen devices, and third-party mistakes; and more companies responding faster and putting CISOs in charge of response management.

Negligence remains the most common cause of breach incidents (41%), followed by lost or stolen portable or mobile devices (35%), malicious attacks (31%), and system failure (27%).

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
COVID-19: Latest Security News & Commentary
Dark Reading Staff 9/17/2020
Cybersecurity Bounces Back, but Talent Still Absent
Simone Petrella, Chief Executive Officer, CyberVista,  9/16/2020
Meet the Computer Scientist Who Helped Push for Paper Ballots
Kelly Jackson Higgins, Executive Editor at Dark Reading,  9/16/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Special Report: Computing's New Normal
This special report examines how IT security organizations have adapted to the "new normal" of computing and what the long-term effects will be. Read it and get a unique set of perspectives on issues ranging from new threats & vulnerabilities as a result of remote working to how enterprise security strategy will be affected long term.
Flash Poll
How IT Security Organizations are Attacking the Cybersecurity Problem
How IT Security Organizations are Attacking the Cybersecurity Problem
The COVID-19 pandemic turned the world -- and enterprise computing -- on end. Here's a look at how cybersecurity teams are retrenching their defense strategies, rebuilding their teams, and selecting new technologies to stop the oncoming rise of online attacks.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-5421
PUBLISHED: 2020-09-19
In Spring Framework versions 5.2.0 - 5.2.8, 5.1.0 - 5.1.17, 5.0.0 - 5.0.18, 4.3.0 - 4.3.28, and older unsupported versions, the protections against RFD attacks from CVE-2015-5211 may be bypassed depending on the browser used through the use of a jsessionid path parameter.
CVE-2020-8225
PUBLISHED: 2020-09-18
A cleartext storage of sensitive information in Nextcloud Desktop Client 2.6.4 gave away information about used proxies and their authentication credentials.
CVE-2020-8237
PUBLISHED: 2020-09-18
Prototype pollution in json-bigint npm package < 1.0.0 may lead to a denial-of-service (DoS) attack.
CVE-2020-8245
PUBLISHED: 2020-09-18
Improper Input Validation on Citrix ADC and Citrix Gateway 13.0 before 13.0-64.35, Citrix ADC and NetScaler Gateway 12.1 before 12.1-58.15, Citrix ADC 12.1-FIPS before 12.1-55.187, Citrix ADC and NetScaler Gateway 12.0, Citrix ADC and NetScaler Gateway 11.1 before 11.1-65.12, Citrix SD-WAN WANOP 11....
CVE-2020-8246
PUBLISHED: 2020-09-18
Citrix ADC and Citrix Gateway 13.0 before 13.0-64.35, Citrix ADC and NetScaler Gateway 12.1 before 12.1-58.15, Citrix ADC 12.1-FIPS before 12.1-55.187, Citrix ADC and NetScaler Gateway 12.0, Citrix ADC and NetScaler Gateway 11.1 before 11.1-65.12, Citrix SD-WAN WANOP 11.2 before 11.2.1a, Citrix SD-W...