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Companies lose $202 for each compromised customer record
Data security breaches are costing companies a great deal more that they did. Firms shell out an average of about $202 for each compromised customer record, a new study shows.2/4/2009 5:00:00 AM By: Jaikumar Vijayan
Companies that are reluctant to invest what it takes on data security better be prepared to pony up a lot more if their systems are ever breached.
That's the main take-away from a new report released by the Ponemon Institute LLC, which shows that the average cost of a data breach to companies is continuing to increase.
Ponemon said the breaches from last year that it studied cost an average of about $202 for each compromised customer record.
That is 46 per cent higher than the $138 per record that Ponemon cited in its first annual report on breach costs, for 2005.
The average cost had previously increased to $182 in 2006 and $197 in 2007, according to Ponemon.
The cost-per-record figures include direct expenses for breach detection, mitigation, notification and response efforts, as well as indirect costs, such as the financial impact of customer defections and lost business opportunities.
Page Navigation 1) The average cost of a data breach is on the rise. – Page 12) The biggest cost to companies is loss of business. – Page 2
3) Costs are highest for companies experiencing them for the first time. – Page 3
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