Feeds

How much does a data breach cost UK companies?

Financial services suffer most

Mobile application security vulnerability report

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.®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.