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.

Risk

2/2/2009
08:43 PM
George V. Hulme
George V. Hulme
Commentary
50%
50%

Cost Of Data Breaches Keeps Going Up

The costs associated with a data breach involving consumer records have been steadily rising, according to the Ponemon Institute's fourth annual study, Cost Of A Data Breach. The survey took a close look at 43 organizations that reported a breach in 2008 -- ranging from the loss of 4,200 records to more than 113,000.

The costs associated with a data breach involving consumer records have been steadily rising, according to the Ponemon Institute's fourth annual study, Cost Of A Data Breach. The survey took a close look at 43 organizations that reported a breach in 2008 -- ranging from the loss of 4,200 records to more than 113,000.The average total cost per incident reached $6.65 million last year, up from $6.3 million in 2007.

The costs include everything from the detection of the breach to consumer notification and response, as well as legal and administrative expenses, lost customers, lost sales, reputation management, and everything associated with providing help to the affected consumers through hot lines and credit-monitoring tools.

Here are some other findings from the release, available here.

  • Health care and financial services companies experienced the highest churn rate -- 6.5 percent and 5.5 percent respectively, on a total average of 3.6 percent, which reflect the sensitivity of the data collected and the customer expectation that information will be protected.
  • Third-party organizations accounted for more than 44 percent of all cases in the 2008 study and are also the most costly form of data breaches due to additional investigation and consulting fees.
  • More than 84 percent of 2008 cases involved organizations that had had more than one data breach in 2008 -- meaning that companies are becoming more experienced in managing breaches over time.
  • More than 88% of all cases in this year's study involved insider negligence.
  • More than half of respondents believe that training and awareness programs assist in preventing future breaches and 44 percent have expanded their use of encryption.
  • It's interesting to note that third parties accounted for 44% of all cases this year. Watch your outsourcers.

    Comment  | 
    Print  | 
    More Insights
    Comments
    Oldest First  |  Newest First  |  Threaded View
    News
    FluBot Malware's Rapid Spread May Soon Hit US Phones
    Kelly Sheridan, Staff Editor, Dark Reading,  4/28/2021
    Slideshows
    7 Modern-Day Cybersecurity Realities
    Steve Zurier, Contributing Writer,  4/30/2021
    Commentary
    How to Secure Employees' Home Wi-Fi Networks
    Bert Kashyap, CEO and Co-Founder at SecureW2,  4/28/2021
    Register for Dark Reading Newsletters
    White Papers
    Video
    Cartoon Contest
    Current Issue
    2021 Top Enterprise IT Trends
    We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
    Flash Poll
    How Enterprises are Developing Secure Applications
    How Enterprises are Developing Secure Applications
    Recent breaches of third-party apps are driving many organizations to think harder about the security of their off-the-shelf software as they continue to move left in secure software development practices.
    Twitter Feed
    Dark Reading - Bug Report
    Bug Report
    Enterprise Vulnerabilities
    From DHS/US-CERT's National Vulnerability Database
    CVE-2021-31755
    PUBLISHED: 2021-05-07
    An issue was discovered on Tenda AC11 devices with firmware through 02.03.01.104_CN. A stack buffer overflow vulnerability in /goform/setmac allows attackers to execute arbitrary code on the system via a crafted post request.
    CVE-2021-31756
    PUBLISHED: 2021-05-07
    An issue was discovered on Tenda AC11 devices with firmware through 02.03.01.104_CN. A stack buffer overflow vulnerability in /gofrom/setwanType allows attackers to execute arbitrary code on the system via a crafted post request. This occurs when input vector controlled by malicious attack get copie...
    CVE-2021-31757
    PUBLISHED: 2021-05-07
    An issue was discovered on Tenda AC11 devices with firmware through 02.03.01.104_CN. A stack buffer overflow vulnerability in /goform/setVLAN allows attackers to execute arbitrary code on the system via a crafted post request.
    CVE-2021-31758
    PUBLISHED: 2021-05-07
    An issue was discovered on Tenda AC11 devices with firmware through 02.03.01.104_CN. A stack buffer overflow vulnerability in /goform/setportList allows attackers to execute arbitrary code on the system via a crafted post request.
    CVE-2021-31458
    PUBLISHED: 2021-05-07
    This vulnerability allows remote attackers to execute arbitrary code on affected installations of Foxit Reader 10.1.1.37576. User interaction is required to exploit this vulnerability in that the target must visit a malicious page or open a malicious file. The specific flaw exists within the handlin...