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
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