Feeds

System failure blamed for increasing data breach costs

Negligence drops to number 2...

Choosing a cloud hosting partner with confidence

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." ®

Internet Security Threat Report 2014

More from The Register

next story
FYI: OS X Yosemite's Spotlight tells Apple EVERYTHING you're looking for
It's on by default – didn't you read the small print?
Russian hackers exploit 'Sandworm' bug 'to spy on NATO, EU PCs'
Fix imminent from Microsoft for Vista, Server 2008, other stuff
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Microsoft pulls another dodgy patch
Redmond makes a hash of hashing add-on
'LulzSec leader Aush0k' found to be naughty boy not worthy of jail
15 months home detention leaves egg on feds' faces as they grab for more power
China is ALREADY spying on Apple iCloud users, claims watchdog
Attack harvests users' info at iPhone 6 launch
Carders punch holes through Staples
Investigation launched into East Coast stores
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.