Feeds

How much does a data breach cost UK companies?

Financial services suffer most

5 things you didn’t know about cloud backup

Data breaches cost UK companies an average of £47 for every record lost.

This means the average cost to a company which suffers a data breach is £1.4m. The Ponemon Institute isn't pulling these figures out of the ether - it talked to 21 UK companies about how much actual data breaches cost them.

From a total of £47 per record, the cost from lost business in the wake of a data disaster is 36 per cent or £17. Financial services companies are particularly at risk - their average costs per record are £55. Customer expectations of trust mean they also suffer a higher cost of lost business.

Phillip Dunkelberger, CEO at PGP Corporation, told The Reg: "Companies are increasingly waking up to the real cost of data losses, especially the cost of losing customers. It is a serious global problem with no easy answers."

Both PGP and Symantec, who co-sponsored the study, believe some kind of data notification law - where companies are obliged to tell a third party when a breach occurs - could help.

Ponemon estimates customer churn rates to go up by an average of 2.5 per cent after a data loss, but the worst example in the UK saw churn rates go up by seven per cent.

The size of the losses examined ranged from 2,500 records to more than 125,000 and costs ranged from £84,000 to £3.8m.

Breaches by third parties were more expensive than in-house losses - on average £59 rather than £42 in-house. This is a difficult issue for big companies to deal with, because their supply chain will include hundreds or even thousands of partner and outsourcer companies.®

5 things you didn’t know about cloud backup

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?