Cost of a Data Breach
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The 2013 annual study on the global cost of data breaches reveals that average costs continue to rise, primarily due to negligence and system glitches, while malicious attacks incur the highest costs. Customer churn varies by country, and specific operational factors can either increase or decrease breach costs. Organizations are improving their response and management strategies to mitigate the financial impacts of these incidents.
Cost of a Data Breach
- 1. 2013 Annual Study: Global Cost of a Data Breach June 5, 2013 1
- 2. Ponemon Institute and Symantec Research • Eighth year Ponemon has conducted this benchmark study • Examines the following topics: – Average costs from a breach (direct and indirect) – Potential legal costs – Costs of lost customers and brand damage – Key trends – Preventive measures taken after a breach • Results are not based upon hypothetical responses 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 2
- 3. Methodology 3 16 industry sectors 277 organizations in nine countries actual data breach experiences 0 catastrophic data breaches incidents >100,000 compromised records not included 1,400 individuals interviewed responsible for IT, compliance, infosec with knowledge of data breach costs 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013
- 4. Globally data breaches cost more per record 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 4 42 58 124 125 132 133 168 188 199 42 102 132 124 145 159 194 191 0 50 100 150 200 250 IN BZ IT JP UK AU FR US DE Average per capita cost of data breach over two years Measured in US$ FY 2012 FY 2011 per compromised record in 2012 per compromised record in 2011
- 5. Mistakes cause 2/3 of data breaches 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 5 Negligence / Human Factor 35% System Glitches 29% Malicious Attacks 37% Major Causes of Data Breach Global 42 29 36 37 33 31 35 33 36 35 46 32 29 26 27 23 24 16 23 25 32 34 41 42 42 43 48 BZ IN IT UK US FR JP AU DE Percent Major Causes of Data Breach by Country Negligence System Glitch Malicious Attack
- 6. Insider threats constantly challenge organizations 0 10 20 30 40 50 2009 2010 2011 2012 Percent Main Causes of Data Breach (U.S.) Over Time Negligence System Glitch Malicious Attack 0 50 100 150 200 250 300 350 2009 2010 2011 2012 Costperrecord Cost of Data Breach (U.S.) by Cause Over Time Negligence System Glitch Malicious Attack 62013 Annual Study: Global Cost of a Data Breach - June 5, 2013
- 7. Malicious attacks are most costly everywhere 42 54 113 105 117 129 152 182 159 40 55 117 116 122 135 155 187 174 46 71 140 155 157 164 187 214 277 0 100 200 300 400 500 600 700 IN BZ JP IT UK AU FR DE US Negligence System Glitch Malicious Attack Data breaches due to malicious or criminal attacks average $157 per record globally 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 7
- 8. Some countries more vulnerable to customer churn • Lost business costs steady at $3.03 million in 2012 (from $3.01 million in 2011) • 13% decrease in customer churn • Taking steps to keep customers loyal and repair damage to reputation and brand can help reduce the cost of a data breach 2.4 2.72.8 3 3.1 3.83.8 4 4.4 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 BZ IN US JP UK DE IT AU FR Percent Abnormal Churn Rate By Country Abnormal Churn Rate United States: 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 8
- 9. Third party error (+$19) Lost or stolen devices (+$8) Quick notification (+$7) Strong security posture (-$15) Incident response plan (-$13) CISO appointment (-$8) Consultants engaged (- $5) Costgoesupwhen… Costgoesdownwhen… Seven factors that raise / reduce cost of a data breach 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 9
- 10. Best Practices to Avoid Major Causes of Data Breach • Educate employees and train them on how to handle confidential information. • Use data loss prevention technology to find sensitive data and protect it from leaving your organization. • Deploy encryption and strong authentication solutions. • Prepare an incident response plan including proper steps for customer notification. 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 10
- 11. Data Breach Risk Calculator • Enables organizations to estimate how a data breach could impact their company • Uses eight years of trend data from this study • It can calculate: – The likelihood that the company will experience a data breach in the next 12 months – The cost per record in the event of a data breach at the company – The overall cost of a data breach at the company • www.databreachcalculator.com 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 11
- 12. In Summary • Key Findings: – Globally the average cost of a data breach continues to climb – Mistakes (negligence and system glitches) still cause most data breaches – Malicious attacks are the most costly data breach incidents in all nine countries – Customer churn varies by country – Specific attributes increase the cost of a data breach – Certain factors reduce the cost of a data breach • Data breaches continue to have serious financial consequences for organizations worldwide • Organizations are becoming better at managing the costs to respond to and resolve data breach incidents 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 12
- 13. Thank you! Copyright © 2012 Symantec Corporation. All rights reserved. Symantec and the Symantec Logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the U.S. and other countries. Other names may be trademarks of their respective owners. This document is provided for informational purposes only and is not intended as advertising. All warranties relating to the information in this document, either express or implied, are disclaimed to the maximum extent allowed by law. The information in this document is subject to change without notice. Thank you! 2013 Annual Study: Global Cost of a Data Breach - June 5, 2013 13