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Calculating the True Cost of a Data Breach

December 9, 2013

A data breach is a serious concern for all businesses. Loss or misuse of data can be financially devastating and can jeopardize a company's reputation. Knowing the potential cost and risk to your business helps you justify and budget preventative measures.

According to the Ponemon Institute and Symantec in their study, 2013 Global Cost of a Data Breach, “The average consolidated data breach cost held steady and slightly increased from $130 to $136 per lost record,” compared to the previous year's study. The report further explains the primary causes of these costly breaches. “Globally, the most common cause of a data breach came from malicious or criminal attacks. These types of breaches continue to be the most expensive. However, the human factor (negligence) and system glitches (IT and business process failures) still account for almost two-thirds of data breaches.”

MegaPath recently launched a data breach calculator. After answering 10 questions and providing the required information, users obtain a custom report of the potential cost of breach.

A company that experiences a data breach faces more than fines and litigation. A data loss can also mean loss of business, customers, and longevity, and, potentially, long-lasting reputational damage. Some companies never recover. A company may also be held liable for restoring any losses incurred by affected customers. For instance, when the Sony Corporation's PlayStation Network was hacked, including consumer credit card information, Sony not only had to pay the cost of the Network outage to the tune of an estimated $171 million, but also had to update their Terms of Use, upgrade security, and decided to offer special free game downloads and extension of paid services to make amends and win back customer loyalty.

MegaPath can help businesses address today's wide-ranging security concerns and avoid the risk of data breaches. We offer Private Networking, Unified Threat Management, and Compliance Services. A private network offers maximum security, and ensures that remote employees have fast yet secure connectivity from any location. Unified Threat Management relies on the many components of our managed security services, including firewalls, anti-virus, and anti-malware, among other tools, to protect your data and your network. Compliance services ensure that your business adheres to strict governmental regulations and avoids risk in the face of increasingly tough security issues. Investing in protection and security against data breaches and threats now means avoiding regret after the fact. Don't wait for a data breach to jeopardize your business.

MegaPath's Data Breach Calculator will help you predict your company's risk of a data breach and compare your results to the average costs reported in the study. Be sure to opt-in for the detailed PDF report if you want to understand how your summary report was derived.

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