Average Total Cost of a Data Breach Rises to $6.75 Million; Major Increase in Number of Records Lost Per Incident. Stolen Laptops Were the Number One Cause of a Data Breach in 2009.
The results of a data breach study, conducted by Perimeter E-Security, were released today, providing a review of the scope and impact of data security breaches that occurred in the past year.
Data breaches hit many organizations hard, exposing personal information that thieves could leverage to steal identities. These incidents result in both financial loss for the victims and major repercussions for the breached organizations, including an average cost of $204 per compromised record and a loss of the valued trust of their customers. The average total cost of a data breach rose to $6.75 million, according to the study.
“While 2009 had the fewest number of data breach incidents reported in the last four years, there was a dramatic increase in the average number of records lost in each incident and a rise in the costs associated with a breach,” said Kevin Prince, Chief Technology Officer, Perimeter E-Security. “The most disturbing trend is that almost half of publicly disclosed data breaches do not include the total number of records compromised.”
Key Findings in The Report:
- 2009 had the fewest number of data breach incidents reported in the last four years.
- Nearly 40% of publicly disclosed data breaches in 2009 did not include the number of records compromised.
- Stolen laptops remain the number one cause of a data breach incident in 2009.
- Improper disposal of documents that lead to a data breach rose 130% over 2008.
- Third parties caused 12% of data breach incidents in 2009.
The data breaches noted in the study include only those reported in the U.S. and showcase incidents that exposed personal information useful to identity thieves such as Social Security numbers, account numbers, and driver’s license numbers. Additionally, some breaches that did not expose such sensitive information were included to underscore the variety and frequency of data breaches.
The study, conducted annually by Perimeter E-Security, focused on several verticals, including finance, retail, healthcare, government and education, which are more prone to identity theft.