Now That The Costs Of Data Breaches Have Risen Again The Third Reason May Surprise You – Charles Leaver

By | June 17, 2015

Written by Patrick Kilgore presented by Charles Leaver CEO Ziften.

 

 

Recently 2 significant reports were released that celebrated big anniversaries. On the one hand, we saw the Mary Meeker 20th annual Internet research study. Some of the original market analysis on the Internet was led by Meeker many years ago and this report saw her mark 20 years of influencing viewpoints on the Internet. And 10 years after Meeker’s first observations on the Internet there was the first study of data breach costs by the Ponemon Institute.

Just 10 years after the beginning of the Internet it was revealed that there is an unsightly disadvantage to the service that supplies significant advantages to our organizations and our lives. Today there are more annual research studies released about data breaches than the Internet itself. Just recently we spent hours examining and digesting 2 of the most significant data breach reports in the industry, the currently cited Ponemon report and the now extremely prominent Verizon DBIR (the report is important enough simply to utilize an acronym).

There were intersections between the two reports, but the Verizon report deserves credit due to the fact that if you’ve been able 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 factors for the overall costs of data breaches skyrocketing were of the most interest to us.

The Ponemon research studies have revealed three drivers behind the increased cost of a breach. The very first is that cyber attacks have actually 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 actually been cited. That’s a 5% jump from 42% to 47% of the overall root causes of a breach. Also, lost profits as a result of a data breach have actually increased. In the aggregate, this increased from $1.33 M to $1.57 M in 2015. The reasons are because of the abnormal client turnover, the increased acquisition activity, and loss of goodwill that arises from being the target of a harmful attack. Nevertheless, the most fascinating reason provided is that data breach expenses associated with detection and escalation have actually increased.

These expenses consist of examinations and forensics, crisis team management and audits and assessments. Now the trend appears to be gathering pace at just shy of a massive $1Billion. Organizations are only now beginning to deploy the solutions needed to continuously monitor the endpoint and offer a clear picture of the origin and complete effect of a breach.

Organizations not only need to monitor the proliferation of devices in a BYOD world, however also aim to enhance the security resources they have actually currently invested in to reduce the expenses of these examinations. Risks need to be halted in real time, rather than determined retrospectively.

“Avoidance might not be possible in the world we live in.” “With harmful threats ending up being increasingly more common, companies will need to develop their M.O. beyond standard AV services and look to the endpoint for complete protection,” stated Larry Ponemon in his webcast with IBM.

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