Data Breach Facts

According to The Ponemon Institute™, an independent research company, the cost of a data breach in 2006 increased by more than 30% in a 12 month period. Future increases in cost are expected over the next few years.

With changes in state and federal laws regarding notifications and 'Red Flag Regulations' affecting certain industries (financial institutions, insurance, mortgage, automotive and healthcare), costs may continue to escalate. The potential financial burden and the need to minimize the impact of a breach stand as a prime reasons why companies need to take a proactive approach and spend time formulating a sufficiently effective response.

The Ponemon Institute’s study further found that companies spend an average of nearly
$5 million for a data breach recovery, plus an additional $180,000 on average following each incident to try and ensure another breach doesn't occur.

The average cost for each individual breach victim is approximately
$193 and is expected to increase due to heightened costs of notification, credit monitoring subscription, discounted or free services, the need for customer hotlines in times of breach, and customer defections (and subsequent loss of future business). Ongoing investigative and administrative expenses, audits for example, once a breach has occurred will also affect day-to-day operations and the profitability of an organization.

The most common cause of a breach is a stolen or lost laptop, PDA, desktop computer or thumb drive.  These account for nearly 50% of all recent breaches with nearly another 30% being lost by 3rd party vendors. This fact raises another vital issue: Companies need to take steps to ensure that their 3rd party vendors are put through an efficient and accurate security assessment before gaining access to sensitive information.  The 3rd party vendor may pay for the recovery actions, but the long term damage to brand equity and reputation lies between the company and the customer/client.

Observers note that costs of a data breach have nothing to do with IT and suggest that companies need to look across a broader spectrum when factoring costs.  In a combined effort to secure company information, management must make information security a priority for every department—this not only alleviates pressures on IT, but it creates synergy between all departments.  A data breach has significant impact on the whole organization, not just IT.

Please click on the link below for a complete list of data breaches that have been reported since January, 2005.
http://www.privacyrights.org/ar/ChronDataBreaches.htm#CP

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Corporate Data Breach

A 'LIFE ENDING EVENT' FOR YOUR BUSINESS?

Identity Theft is not only one of the fastest growing crimes in America, but also one of the most damaging.

As an individual you can spend countless hours trying to recover and restore your identity. 

As a business, should you lose customer information, new state laws and regulations require you to notify your customers in a specific way and in most cases, help mitigate the damages associated with their loss. 

This often leads to an expensive combination of legal, investigative, and administrative expenses.  You also have the added cost of credit monitoring subscriptions, loss of workplace productivity, and customer satisfaction issues.

Unfortunately, data breaches are now a common threat to organizations and how you respond and look after the breach victims determines your future success.

Your organization needs to keep focusing on your core business and day-to-day activities in order to maintain revenue.  Let us guide the way in the case of a data breach—we can maintain your reputation, revenue, and staff operations in a cost-effective, professional, and efficient manner.