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Sunday, December 02, 2007

Security Breach Costs Jump 30%

The cost of recovering from a single data breach now averages $6.3 million-that’s up 31 percent since 2006 and nearly 90 percent since 2005, according to the Ponemon Institute, which studies privacy and information management.  Two-thirds of that cost is spent recovering business that’s lost after a breach, a cost that has risen 30 percent since last year. More customers stop doing business with a company after their information is exposed, and it’s getting more expensive to replace them.  They spent an average of $197 per lost record investigating the breach, notifying customers, restoring security infrastructures and recovering lost business.  Breaches by third parties-outsourcers or members of a company’s supply chain-were the second biggest cause of security compromises and are more expensive.

Notification costs were down 40 percent, to $15 per customer, suggesting that companies are learning from each other, Dasher says.

Dasher says when PGP sells its software, which encrypts data, more people inside a company are now involved in purchasing it.

This is Ponemon’s third survey of data breach costs since 2005.,1540,2223732,00.asp

Posted on 12/02