The annual Ponemom Institute survey on the impacts of a data breach, while already a downer, is growing particularly gloomy as the cost continues to rise. This year, they peg the cost at $3.92 million on average. Average! For companies and organizations that fail to detect, identify and mitigate as quickly as possible, that figure can be much higher.
The 2019 figure of $3.92 million is 12-percent higher than it was just five years ago. The impact of such a high cost, especially on a smaller business, can range from detrimental to closing the doors. With increasing awareness of data breaches, the public memory is increasing the length of time the impact is felt. Loss of business and decline in reputation due to a breach still linger two, three and four years after. The report states that 67-percent of the costs are borne in Year 1, followed by 22-percent and 11-percent in Years 2 and 3.
An average cost estimate is only so useful, and it’s true that some industries suffer greater than others. Healthcare is the most expensive industry when it comes to data breaches. The large amount of personal date stored in health records makes them a prime target. Geography factors in too, with the United States leading the world for most costly with an average of $8.19 million, nearly twice the global average.
How much data is lost matters greatly. A “mega-data breach,” where a million records or more are stolen can cost the unfortunate target $42 million. If you expand that up to a mega-mega-data breach with over 50 million records accessed, you are looking at $388 million.
With year-end bonuses at stake, the C-suite is taking notice. Enterprise-wide approaches to cybersecurity from awareness to robust defenses and rapid recovery processes are becoming hot topics in the executive dining rooms.
Uplogix fits into conversation when it comes to response and recovery from a network hack. With the secure out-of-band access and automation that you can rely on both as a “panic button” to initiate a lock-down as well as the tools needed for a quick and deliberate recovery. It can be a key tool in responding to intruders in your network, especially in those initial moments when you don’t know the full extent of the situation. Uplogix increases your cyber resiliency.
And time is money when it comes to cybersecurity. The Ponemom report shows that even with the increasing awareness, the average length of a data breach lifecycle is 279 days, an increase of 4.9-percent since 2018. The impact? The study shows that once the breach passes the 200-day point, the impacted companies can expect their costs to increase by an average of $1.23 million.
