One Breach = $1 Million To $53 Million In Damages Per Year, Report Says

New Ponemon report studies real attack cases and their financial fallout; new Digital Forensics Association study tallies five-year public breach data

Organizations are getting hit by at least one successful attack per week, and the annualized cost to their bottom lines from the attacks ranged from $1 million to $53 million per year, according to a newly published benchmark study of 45 U.S. organizations hit by data breaches.

The independent Ponemon Institute's "The First Annual Cost of Cyber Crime Study" (PDF), which was sponsored by ArcSight, showed a median cost of $3.8 million for an attack per year, a price tag that includes everything from detection, investigation, containment, and recovery to any post-response operations. "Information theft was still the highest consequence -- the type of information [stolen] ranged from a data breach of people's [information] to intellectual property and source code," says Larry Ponemon, CEO of the Ponemon Institute. "We found that detection and discovery are the most expensive [elements]."

And a separate report called "The Leaking Vault" (PDF) released today by the Digital Forensics Association found that among the 2,807 publicly disclosed data breaches worldwide during the past five years, the cost to the victim firms as well as those whose information was exposed came to whopping $139 billion.

The Digital Forensics Association report says nearly half of all of the reported breaches came from a laptop, which in 95 percent of the cases is stolen. But actual hacks accounted for the most stolen records during 2005 to 2009, with 327 million of the 721.9 million covered in the report, even though hacks accounted for only about 16 percent of the data breaches.

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Source: darkreading.com
By: Kelly Jackson Higgins