Data Breach Costs Rise To $7M Per Incident, Study Says

According to a study by IBM and the Ponemon Institute, the average cost of a standard data breach (less than 100,000 records) is now barely over $7 million, with an average cost of $221 per record lost, comprising a two percent increase from last year. Additionally, the global average for a data breach is $4 million. According to the partners, the cost will likely  remain between $5 million and $8 million. Companies should plan permanent data security programs. Of the 64 companies surveyed across 16 sectors, the most prolific and damaging form of breach was a malicious attack. Unfortunately for some, the health care industry is the most costly, with an average cost of $402 per record compromised. In another study, Deloitte says that 95 percent of the damage caused to a company following a breach takes place over the next five years as lost contract revenue and customer relations overshadow the immediate costs of reimbursement and litigation.

Many companies continue to suffer from data breaches, as Wendy’s recently announced that the damage from its data breach is “considerably higher” than previously believed and an Arizona federal court upheld a hole in P.F. Chang’s cybersecurity policy. Additionally, the U.S. Chamber of Congress and others want the FCC to limit the proposed data-privacy guidelines, citing that they go too far or are inconsistent. In March, the FCC proposed rules aimed to regulate what and when ISPs can share customers’ data with third parties. Other rules cover customer opt-ins and opt-outs for data sharing, increased transparency notices, data breach notification policies and steps to strengthen internal data security policies.