Cost of Data Breaches
Data breaches are getting more expensive with their increased range. It is analyzed globally; that fewer than 30% of organizations are likely to suffer at leas one breach over the next 24 months. In the U.S. a data breach costs a company on average $8.19 million, an increase from $7.91 million.
How can you calculate the cost of a data breach?
To calculate the average cost of data breach, both direct and indirect expenses incurred by the organizations are collected. Direct expenses include engaging forensic experts, outsourcing hotline support and providing free credit monitoring subscriptions and discounts on upcoming products and services. Indirect cost includes in-house investigations and communication, as well as the extrapolated value of customer loss resulting from turnover or diminished customer acquisition rates. Calculation of the components of the cost of a data breach depends on the below factors:
- The unexpected and unplanned loss of customers following a data breach.
- Number of records lost or stolen during the incident
- Time taken to “Identify and Contain” a data breach incident
- Detection and escalation of the data breach incident
- Costs of recovery associated with the incident