Charles Leaver – It’s Official Data Breach Costs Are Up And The Third Reason Why May Surprise You

Written by Patrick Kilgore presented by Charles Leaver CEO Ziften.

Just recently 2 major reports were published that celebrated big anniversaries. On the one hand, we saw the Mary Meeker 20th annual Internet study. A part of the initial market analysis on the Internet was led by Meeker several years back and this report saw her mark 20 years of influencing opinions on the Internet. And 10 years after Meeker’s very first observations on the Internet there was the first study of data breach costs by the Ponemon Institute.

Just ten years after the inception of the Internet it was revealed that there is an unsightly downside to the service that provides significant benefits to our organizations and our lives. Today there are more yearly research studies released about data breaches than the Internet itself. Just recently we invested hours analyzing and digesting two of the most significant data breach reports in the market, the currently cited Ponemon report and the now extremely influential Verizon DBIR (the report is essential enough simply to utilize an acronym).

There were intersections between the two reports, but the Verizon report is worthy of credit because if you have actually had the ability to do anything in security for 10 years, you should be doing something right. There are lots of intriguing stats in the report however the reasons for the overall expenses of data breaches skyrocketing were of the most interest to us.

The Ponemon studies have actually exposed three drivers behind the increased cost of a breach. The very first is that cyber attacks have increased in number and this has actually correlated in greater costs to remediate these attacks. An increased per capita expense from $159 to $170 year on year has been mentioned. That’s a 5% jump from 42% to 47% of the overall root causes of a breach. Also, lost incomes as a result of a data breach have increased. In the aggregate, this increased from $1.33 M to $1.57 M in 2015. The reasons are because of the unusual consumer turnover, the increased acquisition activity, and loss of goodwill that results from being the target of a malicious attack. Nevertheless, the most intriguing reason provided is that data breach costs connected with detection and escalation have increased.

These costs consist of investigations and forensics, crisis team management and audits and assessments. Now the pattern appears to be gathering pace at just shy of an incredible $1Billion. Organizations are just now beginning to implement the solutions needed to continually monitor the endpoint and provide a clear picture of the origin and full effect of a breach.

Organizations not only need to monitor the proliferation of devices in a BYOD world, but likewise look to enhance the security resources they have actually currently invested in to decrease the costs of these investigations. Risks have to be halted in real time, rather than identified retrospectively.

“Avoidance may not be possible in the world we live in.” With destructive risks ending up being increasingly more common, organizations will need to evolve their M.O. beyond standard AV services and look to the endpoint for complete security,” said Larry Ponemon in his webcast with IBM.

 

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