By Tim Wilson
Feb 02, 2009
The cost of data breaches is on the rise, and businesses that experience
them are losing customers as a result, according to a new study issued
In an an update to its popular annual "U.S. Cost of a Data Breach
Study," Ponemon Institute and PGP have published a new report that
indicates many of the cost factors surrounding security incidents have
risen in the past 12 months.
"After four years of conducting this study, one thing remains constant:
U.S. businesses continue to pay dearly for having a data breach," says
Larry Ponemon, chairman and founder of The Ponemon Institute. "As costs
only continue to rise, companies must remain on guard or face losing
valuable customers in this unpredictable economy."
The average cost of a data breach in 2008 grew to $202 per record
compromised, an increase of 2.5 percent since 2007 ($197 per record) and
11 percent compared to 2006 ($182 per record), according to the study.
The average total cost per reporting company was more than $6.6 million
per breach -- up from $6.3 million in 2007 and $4.7 million in 2006 --
and ranged from $613,000 to almost $32 million.
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