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2016 US Cost of Data Breach Study

2016 US Cost of Data Breach Study

May 15, 2017
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Key Facts from Cost of Data Breach Study conducted by the Ponemon Institute, LLC sponsored by IBM

  • The average cost of a data breach in $7.01 million up 7% from the prior year
  • The average cost per lost or stolen record is $221 up 2% from the prior year
  • Financial Services firm’s average $264/Record
  • Certain heavily regulated industries have higher data breach costs above the overall mean of $221/record
    • Healthcare
    • Life Sciences
    • Financial Services
  • Companies that had higher churn rates (loss of customers) saw higher average costs of data breach
  • Root causes of breach; 50% Malicious or Criminal Attacks, 27% System Glitch, 23% Human Error
  • Detection and escalation costs reached a record high of $730,000 suggesting companies are investing more in these activities
  • Post data breach costs (help desk activities, inbound communications, special investigative activities, remediation, etc.) increased from $1.64 million to $1.72 million

Factors which contributed to decreasing the cost of a data breach:

  • Having an incident response plan and team in place
  • Extensive use of data encryption
  • Employee Training
  • Use of Data Loss Prevention Software

Click Here for Ponemon Study