This blog is a summary of a 2017 study commissioned by IBM and undertaken by the Ponemon Institute, LLC on the cost of a data breach that can be found at https://www.ibm.com/security/data-breach
A data breach is an event – either accidental or intentional – that discloses personal, financial and/or any other private information of a business or an individual that potentially puts the entity at risk of some type of loss.
The principal causes of a data breach that compromises records and potentially puts personal and business information at risk are:
- Criminal attacks
- Human error by an employee
- Business process or IT failures
The average cost to a financial institution for each compromised record in 2016 was $245.
The average cost of detection and escalation incurred by the U.S. firms following a material data breach in 2016 was $1.07 million.
Factors that may decrease the cost of a data breach include:
- Participation in threat sharing
- Use of security analytics
- The recruitment and retention of knowledgeable personnel
The probability of a material data breach occurring at any organization over the next 24-month period is estimated to be 26.8%.
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