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

2/3/2009
11:46 AM
Keith Ferrell
Keith Ferrell
Commentary
50%
50%

Data Breach Costs Climb Past $6.6 Million: Most Breaches Caused By Negligence

The business cost of a data breach is skyrocketing, according to a new study from Ponemon Institute and security firm PGP, with cost per breached company averaging $6.6 million. Most breaches are the result of insider negligence.

The business cost of a data breach is skyrocketing, according to a new study from Ponemon Institute and security firm PGP, with cost per breached company averaging $6.6 million. Most breaches are the result of insider negligence.Costs associated with data breaches are soaring, up almost 50% in the last couple of years, according to a new study just released by Ponemon and PGP. Per company costs as a consequence of a breach average $6.6 million, the study reports; costs are, of course, affected by the number of records breached.

Cost per compromised record has risen $202, up 2.5% in a year. Some of that is hard cost -- security repairs, legal fees, reparations -- but well over half of the $202 cost represents lost business.

Department of Duh: Customers tend to leave companies that have compromised their data.

According to the study of 43 data breaches and their effect on companies, a whopping 88% of the compromises were caused by negligence.

Negligence!

That's not exactly news, but it's no less comforting for being so sadly familiar. Sloppiness, incompetence, failure to follow policy (or to have a policy) can cost your business $202 per compromised record. Can you afford that? Not even in good times!

And it's an avoidable expense. Sponsor of the study PGP is in the encryption biz, so encryption is near the top of the recommendations list, but you already know that.

What's really at the top of the list is the fact that cost-per-breach is climbing high fast , and that 88% of the breaches studied were caused by avoidable errors.

Whatever business you're in, you're also clearly and permanently in the avoid security negligence business too.

The 2008 Cost of Data Breach Annual Study can be downloaded here. (Registration required.)

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
News
Inside the Ransomware Campaigns Targeting Exchange Servers
Kelly Sheridan, Staff Editor, Dark Reading,  4/2/2021
Commentary
Beyond MITRE ATT&CK: The Case for a New Cyber Kill Chain
Rik Turner, Principal Analyst, Infrastructure Solutions, Omdia,  3/30/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
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-2021-3493
PUBLISHED: 2021-04-17
The overlayfs implementation in the linux kernel did not properly validate with respect to user namespaces the setting of file capabilities on files in an underlying file system. Due to the combination of unprivileged user namespaces along with a patch carried in the Ubuntu kernel to allow unprivile...
CVE-2021-3492
PUBLISHED: 2021-04-17
Shiftfs, an out-of-tree stacking file system included in Ubuntu Linux kernels, did not properly handle faults occurring during copy_from_user() correctly. These could lead to either a double-free situation or memory not being freed at all. An attacker could use this to cause a denial of service (ker...
CVE-2020-2509
PUBLISHED: 2021-04-17
A command injection vulnerability has been reported to affect QTS and QuTS hero. If exploited, this vulnerability allows attackers to execute arbitrary commands in a compromised application. We have already fixed this vulnerability in the following versions: QTS 4.5.2.1566 Build 20210202 and later Q...
CVE-2020-36195
PUBLISHED: 2021-04-17
An SQL injection vulnerability has been reported to affect QNAP NAS running Multimedia Console or the Media Streaming add-on. If exploited, the vulnerability allows remote attackers to obtain application information. QNAP has already fixed this vulnerability in the following versions of Multimedia C...
CVE-2021-29445
PUBLISHED: 2021-04-16
jose-node-esm-runtime is an npm package which provides a number of cryptographic functions. In versions prior to 3.11.4 the AES_CBC_HMAC_SHA2 Algorithm (A128CBC-HS256, A192CBC-HS384, A256CBC-HS512) decryption would always execute both HMAC tag verification and CBC decryption, if either failed `JWEDe...