Cost of A Security Breach
Security breaches: a cheap hosting company’s worst nightmare. For the past eight years, the Ponemon Institute has researched data breach information, surveying companies around the world in order to determine the associated costs.
This year’s report expanded their reach, taking a look at data breaches in about 300 companies located in nine countries, representing sixteen industries. What did they find? Let’s take a look.
According to the report, the average cost incurred by an organization after a data breach rose a bit from $130 to $136 per record lost. They found that the most common cause is a malicious attack. Two-thirds of data breaches are caused by glitches caused by process failures and human error.
What industries experienced the highest costs due to data breaches? The healthcare industry averages about $233 per lost record; the financial industry sees about $215 per record; and the pharmaceutical industry $207 per record. What about the lowest cost? The retail industry only spends about $78 per lost record.
There were some things that seemed to remain the same from last year’s report. For instance, the United States and Germany pay the most after a data breach ($188 for the US and $199 for Germany, price per record).As for total costs, these two countries are the highest (the US $5.4 million, Germany $4.8 million).
If you look at other countries and compare them against each other, there is much disparity. Why is this? Each country is different regarding type of attack or threat that each organization is faced with, not to mention the differences in data protection laws country by country. For instance, Australia, the UK, Germany, and the United States have stronger consumer protection regulations and laws that lead to better cybersecurity and privacy.
One of the biggest issues facing organizations, particularly in industries dealing with financial data or healthcare, is loss of revenue. When a breach occurs in these industries, customers tend to become more wary resulting in loss of trust in that brand or business.
Cost of A Security Breach: What’s Next?
Best practices are crucial to ensuring the safety of your data. As long as you are working hard continuously and making constant improvements on your data protection strategy, you’re doing all you can to ensure your data is safe. Here are some recommendations from Symantec regarding the best ways to prevent losing revenue due to a data breach:
- Train your employees on the storage and use of confidential information you may be storing on your servers in order to prevent accidental loss or breaches.
- Rely on data loss prevention technology in order to seek out sensitive data and prevent it from getting outside the walls of your organization.
- Encrypt your sensitive data, and employ various authentication solutions.
- Implement an incident response plan in the event of a security breach, and don’t forget to include steps that should be taken to notify customers of the problem.
Security breaches happen, but you can take steps to prevent them from costing your company money. These tips will help your cheap hosting company better protect itself in the event a breach does occur!