Feeds

How much does a data breach cost UK companies?

Financial services suffer most

Maximizing your infrastructure through virtualization

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 Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
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
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.