Chuck Leaver – The Cost Of Data Breaches Are Up And The Third Reason Will Surprise You

Written by Patrick Kilgore presented by Chuck Leaver CEO Ziften.

Just recently 2 significant reports were released that celebrated large anniversaries. On the one hand, we saw the Mary Meeker 20th yearly Internet study. A part of the original market analysis on the Internet was led by Meeker several years ago and this report saw her mark Twenty Years of affecting opinions on the Internet. And 10 years after Meeker’s very first observations on the Internet there was the first research study of data breach costs by the Ponemon Institute.

Just 10 years after the creation of the Internet it was revealed that there is an ugly drawback to the service that supplies significant benefits to our organizations and our lives. Today there are more annual research studies released about data breaches than the Internet itself. Recently we spent hours evaluating and absorbing two of the greatest data breach reports in the market, the already mentioned Ponemon report and the now very influential Verizon DBIR (the report is essential enough just to utilize an acronym).

There were intersections between the two reports, but the Verizon report is worthy of credit because if you’ve had the ability to do anything in security for 10 years, you must be doing something right. There are numerous interesting stats in the report but the reasons for the total costs of data breaches skyrocketing were of the most interest to us.

The Ponemon research studies have actually revealed 3 drivers behind the increased cost of a breach. The very first is that cyber attacks have increased in number and this has correlated in greater costs to remediate these attacks. An increased per capita cost from $159 to $170 year on year has actually 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 actually increased. In the aggregate, this increased from $1.33 M to $1.57 M in 2015. The reasons are because of the abnormal customer turnover, the increased acquisition activity, and loss of goodwill that results from being the target of a harmful attack. However, the most intriguing reason offered is that data breach expenses associated with detection and escalation have actually increased.

These expenses include examinations and forensics, crisis group management and audits and assessments. Now the trend appears to be gathering speed at just shy of an incredible $1Billion. Organizations are only now beginning to implement the solutions needed to continuously monitor the endpoint and offer a clear picture of the root cause and complete impact of a breach.

Organizations not just have to monitor the increase of gadgets in a BYOD world, however also look to enhance the security resources they have actually already invested in to minimize the costs of these investigations. Threats need to be halted in real time, rather than recognized retrospectively.

“Prevention may not be possible in the world we live in.” With malicious risks becoming increasingly more typical, organizations will have to evolve their M.O. beyond conventional AV solutions and look to the endpoint for total protection,” stated Larry Ponemon in his webcast with IBM.

 

~leaverchuck1


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