cyber trends
A NEW STUDY CONDUCTED BY IBM
SECURITY AND THE PONEMON INSTITUTE
HAS CALCULATED THE FULL COST OF
‘MEGA BREACHES’, HIGHLIGHTING THAT
DATA BREACHES ARE THE COSTLIEST IN
THE US AND THE MIDDLE EAST.
A
new study has
found that the
Middle East is
one of the regions
hit hardest by
the cost of data
breaches –
second only to the US. IBM Security
announced the results of the global
study which examined the full financial
impact of a data breach on a company’s
bottom line.
Overall, the study found that hidden
costs in data breaches – such as lost
business, negative impact on reputation
and employee time spent on recovery –
are difficult and expensive to manage.
For example, the study found that
one-third of the cost of ‘mega breaches’
(more than one million lost records) were
derived from lost business.
Sponsored by IBM Security and
conducted by Ponemon Institute, the
18
IBM study
reveals hidden
costs of data
breaches
2018 Cost of a Data Breach Study found
that the average cost of a data breach
globally is US$3.86 million, a 6.4%
increase from the 2017 report.
Based on in-depth interviews with
nearly 500 companies that experienced
a data breach, the study analyses
hundreds of cost factors surrounding
a breach, from technical investigations
and recovery, to notifications, legal and
regulatory activities, and cost of lost
business and reputation.
This year for the first time, the study
also calculated the costs associated
with ‘mega breaches’ ranging from
one million to 50 million records lost,
projecting that these breaches cost
companies between US$40 million and
US$350 million respectively.
“While highly publicised data breaches
often report losses in the millions,
these numbers are highly variable and
often focused on a few specific costs
which are easily quantified,” said Wendi
Issue 05
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