DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Corporate data breach average cost hits $7.2 million

Posted on March 8, 2011 by Dissent

The cost of a data breach went up to $7.2 million last year up from $6.8 million in 2009 with the average cost per compromised record in 2010 reaching $214, up 5% from 2009.

The Ponemon Institute’s annual study of data loss costs this year looked at 51 organizations who agreed to discuss the impact of losing anywhere between 4,000 to 105,000 customer records. The private-sector firms participating in the Ponemon Institute’s “2010 Annual Study: U.S. Cost of a Data Breach” hail from across various industries, including financial services, retail, pharmaceutical technology and transportation.

Read more on NetworkWorld.   Of note, those who respond quicker to getting notifications out to consumers, seem to be paying more:

About 41% of the respondents in the study said their organization had notified victims within one month of discovering the data breach, up from 36% in 2009. But these so-called quick responders paid $268 per record, up 22% from 2009 — and substantially more than companies that took longer, which paid $174 per record, down 9% from 2009.

Okay, that’s not good. We don’t want entities having to pay more promptly disclosing. What is increasing the cost of the breach clean-up to entities who respond quickly? According to Ponemon’s press release:

Costs pile up in a rush to make a one-month or less reporting time deadline and don’t necessarily mean companies are doing a better job in the forensics of understanding exactly what happened to them in the data breach, says Ponemon. Instead, it seems to lead to an “over-reporting phenomenon” where more records than were actually in the data breach are reported and publicly disclosed. This may be happening because companies are afraid they will have problems with state or federal regulators or class-action lawsuits if they delay past the one-month timeline, he said.

These data will undoubtedly be used by some to argue for a “take a bit more time and get it right and save money” approach. There’s much to discuss here.

Category: Commentaries and Analyses

Post navigation

← Ca: Central Health employee terminated for privacy breach
Hard drive containing personal information of some Western Michigan University students and faculty missing →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Major trial underway for data leak that left 72,000 victims in France
  • Anubis: A Closer Look at an Emerging Ransomware with Built-in Wiper
  • HealthEC Agrees to $5.48 Million Settlement to End Data Breach Lawsuit
  • US offering $10 million for info on Iranian hackers behind IOControl malware
  • Sompo Japan Insurance submits improvement plan after info leakage
  • Moreno Valley, Calif., Schools Report Data Breach
  • The Growing Cyber Risks from AI — and How Organizations Can Fight Back
  • Credit Control Corporation data allegedly from 9.1 million consumers listed for sale on forum
  • Copilot AI Bug Could Leak Sensitive Data via Email Prompts
  • FTC Provides Guidance on Updated Safeguards Rule

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Vermont signs Kids Code into law, faces legal challenges
  • Data Categories and Surveillance Pricing: Ferguson’s Nuanced Approach to Privacy Innovation
  • Anne Wojcicki Wins Bidding for 23andMe
  • Would you — or wouldn’t you?
  • New York passes a bill to prevent AI-fueled disasters
  • Synthetic Data and the Illusion of Privacy: Legal Risks of Using De-Identified AI Training Sets
  • States sue to block the sale of genetic data collected by DNA testing company 23andMe

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.