Chuck Leaver – You Will Be Surprised By The Third Reason Why Data Breach Costs Are Up Again

Written by Patrick Kilgore presented by Chuck Leaver CEO Ziften.

Just recently two major reports were released that celebrated large anniversaries. On the one hand, we saw the Mary Meeker 20th yearly Internet research study. A part of the initial industry analysis on the Internet was led by Meeker many years back and this report saw her mark 20 years of influencing opinions on the Internet. And ten years after Meeker’s first observations on the Internet there was the first study of data breach expenses by the Ponemon Institute.

Just ten years after the inception of the Internet it was exposed that there is an ugly disadvantage to the service that supplies significant advantages to our organizations and our lives. Today there are more annual research studies published about data breaches than the Internet itself. Just recently we spent hours analyzing and digesting two of the greatest data breach reports in the market, the currently cited Ponemon report and the now very influential Verizon DBIR (the report is essential enough just to use an acronym).

There were intersections between the two reports, however the Verizon report should be given credit since if you’ve been able to do anything in security for ten years, you must be doing something right. There are numerous intriguing stats in the report however the factors for the overall costs of data breaches soaring were of the most interest to us.

The Ponemon studies have actually revealed three drivers behind the increased expense of a breach. The first is that cyber attacks have increased in number and this has actually correlated in higher expenses to remediate these attacks. An increased per capita cost from $159 to $170 year on year has been pointed out. That’s a 5% jump from 42% to 47% of the overall root causes of a breach. Likewise, lost profits as a result of a data breach have increased. In the aggregate, this increased from $1.33 M to $1.57 M in 2015. The reasons are because of the irregular client turnover, the increased acquisition activity, and loss of goodwill that arises from being the target of a destructive attack. Nevertheless, the most intriguing reason provided is that data breach costs related to detection and escalation have actually increased.

These expenses include investigations and forensics, crisis team management and audits and evaluations. Now the trend appears to be gathering pace at just shy of a whopping $1Billion. Organizations are only now beginning to implement the solutions required to continually monitor the endpoint and supply a clear picture of the origin and complete effect of a breach.

Organizations not just need to monitor the proliferation of gadgets in a BYOD world, however also seek to enhance the security resources they have already invested in to lower the expenses of these examinations. Risks need to be stopped in real time, instead of determined retrospectively.

“Prevention might not be possible in the world we reside in.” With harmful threats ending up being more and more common, organizations will need to develop their M.O. beyond traditional AV services and look to the endpoint for complete protection,” stated Larry Ponemon in his webcast with IBM.