IT | Security

Happy Data Privacy Day - Cost of a Data Breach Goes Up

By: Absolute Team | 1/28/2010

Today's World Data Privacy Day and what better way to spend it than to take a look at the effects of data breaches. The Ponemon Institute and PGP have released a new report about the Cost of a Data Breach in 2009. In 2008, the cost was found to be $202 per breached record. The 2009 cost per breached record increase to $204, a very marginal increase from the previous year. But it adds up.

The 2009 study examined the records of 45 U.S. companies that experienced a data breach that year, with records lost in the range from 5000 to over 101,000. The study found that, for the first time, companies are spending more on technologies to prevent and remediate breaches. The organizational cost of a data breach, on average, was $6.75 million. The most expensive breach resolution recorded in the study was $31 million.

Given the first-ever increase in technology spending in this category, the areas where spending was concentrated included technologies in encryption, identity and access management, data loss prevention and endpoint security.

In a similar study, the Ponemon Institute found that the cost of a lost laptop in 2008 was nearly $50,000. It is encouraging to see that companies are paying attention to these costs - which include lost customer trust and loyalty - and are investing in technologies, such as those offered by Absolute Software, to mitigate these costs.

What are you doing to help stop data breaches in your organization?

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