Feeds

System failure blamed for increasing data breach costs

Negligence drops to number 2...

High performance access to file storage

System failure has replaced negligence as the single biggest source of data breaches involving UK firms, the cost of which rose for the third successive year.

The average data breach cost UK organisations £1.9 million or £71 per record, an increase of 13 per cent from the year before, according to a Symantec-sponsored survey. Cost of breaches ranged from £36,000 to £6.2 million.

The 2010 edition of the survey blamed "malicious or criminal attacks" for 29 per cent of all data breaches, up from 22 per cent during 2009. The costs arising from data breaches include cleanup costs as well as increased customer churn due to diminished trust.

More than a third (37 per cent) of the cases scrutinised during the study involved system failure, up 7 percentage points on 2009. Negligence, by contrast, dropped 11 points to reach a 34 per cent blame for data breach rating last year. Lost or stolen devices and third-party mistakes each fell slightly, while malicious or criminal attacks rose five points to become the principle reason given for 29 per cent of data breach incidents.

The survey, published today, and carried out by the Ponemon Institute under the sponsorship of Symantec, was based on an analysis of actual data breach experiences of 38 UK companies from 13 different industry sectors, including banks and telecoms.

Seven in 10 firms hit by data breach problems applied encryption technologies as a post-breach remedy, while moves to strengthen perimeter controls were applied by a similar number (69 per cent) of victims.

Last year the Information Commissioner's Office (ICO) received new enforcement powers, including the ability to levy heavy fines on organisations that experience data breaches as a result of negligence, providing even more reason to prevent breaches in the first place.

"Regulators are cracking down to ensure organisations implement required data security controls or face harsher penalties," said Dr Larry Ponemon, chairman and founder of the Ponemon Institute. "Confronted with both malicious and non-malicious threats from inside and outside the organisation, companies must proactively implement policies and technologies to mitigate the risk of costly breaches." ®

High performance access to file storage

More from The Register

next story
Parent gabfest Mumsnet hit by SSL bug: My heart bleeds, grins hacker
Natter-board tells middle-class Britain to purée its passwords
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Web data BLEEDOUT: Users to feel the pain as Heartbleed bug revealed
Vendors and ISPs have work to do updating firmware - if it's possible to fix this
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Snowden-inspired crypto-email service Lavaboom launches
German service pays tribute to Lavabit
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Call of Duty 'fragged using OpenSSL's Heartbleed exploit'
So it begins ... or maybe not, says one analyst
NSA denies it knew about and USED Heartbleed encryption flaw for TWO YEARS
Agency forgets it exists to protect communications, not just spy on them
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.