June 20, 2016//Ellen NeveuxLast Updated: July 03, 2018
Healthcare reaches $355 per compromised record
When a company suffers a data breach there are many costs – both direct and indirect. The first is a public blow to the credibility of the brand. But from there, various factors determine post-breach public opinion of the enterprise. The masses typically want answers to the following:
How the company answers (or doesn’t answer) these questions have an immediate impact on business going forward. Big or small, it’s clear the price of the breach heavy, but the actual cost in real-time dollars of compromised data is extremely high – and rising.
Cost of a data breach
The Ponemon Institute and IBM conduct an annual study that reviews the current “Cost of a Data Breach.” The 2016 report includes surveys from 400 companies across the globe and found that the average cost of a data breach for companies is a staggering $4 million. This number represents a 29% increase since 2013.
The study explored the differences between industry and reaction time to call out the primary variables that influence a data breach price tag. In a press release issued by IBM, the company says,
The complexity of attacks can impact a company’s response time, which in turn makes the event more expensive. The statement continues,
Ponemon concluded that there is a 26% probability a company will suffer a data breach of 10,000 records over the next two years. This stat makes it critical to not only make sure to have a response team in place but to also identify the most vulnerable areas of an enterprise – notably, how third-party access is managed.
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