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Data Breach Fact Sheet
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Data Breaches At-A-Glance

  • More than 216 million records have been compromised since early 2005.

  • The total average cost of a data breach (not including fines) grew to $197 per compromised record, an increase of 8% since 2006 and 43% compared to 2005.

Post-breach Activity Costs

  • The average total cost per reporting company was more than $6.3 million per breach and ranged form $225,000 to almost $35 million.

  • In 2007, there was a 43% rise in data breach related costs compared to 2005 as affected companies scrambled to notify customers, bring in investigators , invest in new security technology and respond to lawsuits.

  • After suffering a data breach, study participants said their companies expanded the use of encryption, invested in new data loss prevention and identity and access management products; and deployed new technology for endpoint security and perimeter control, and event management.

Data Breaches and Loss of Customers

  • The cost of lost business continued to increase at more than 30% averaging $4.1 million or $128 per compromised record. Lost business now accounts for 65% of data breach costs compared to 54% in the 2006 study.

  • Breaches by third-party organizations such as outsourcers, contractors, consultants, and business partners where reported by 40% of respondents up from 29% in 2006 and 21% in 2005.

  • Breaches by third parties where also more costly than breaches by the enterprise itself, averaging $231 compared to $171 per record.

*Survey conducted by Ponemon Institute, Elk Rapids, Michigan. It examined the financial consequences of data breaches involving consumers' personally identifiable information and focused on 35 data breach incidents in the U.S. involving as few as 4,000 records and as many as 125,000 records


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