The High Cost of a Data Breach Just Got Higher by Richard Blech
According to the 2014 Cost of Data Breach Study: Global Analysis from Ponemon, the cost of a data breach to a company has increased by 15 percent in a single year with the average cost to a company coming in at $3.5 million globally. The United States and Germany lead the world with the most expensive security breaches with estimates of the actual cost of $195 to $201 per record exposed. In the US, the average cost of a data breach is $5.85 million. In Germany, it’s $4.74 million.
Some breaches are more damaging than others and can cost considerably more in customer confidence, increased spending on litigation, new security technologies and can even cost senior management their jobs. The Target breach at the end of 2013 is a prime example of how damaging a security breach can be to a brand and the executives who manage the company.
After a breach, a company’s reputation suffers along with the loss of customer loyalty and revenue. Companies must spend heavily to regain their customer’s trust while still trying to assure new customers they have taken steps to prevent a breach from happening again. According to study, some industries experience a higher customer turnover after a breach than others. This includes pharmaceutical companies, financial services/banks, and healthcare. In some cases, a data breach can put a company out of business.
The average cost of a breach is $145 per record for the rest of the world and that cost is up by nearly 10 percent over last year. For many countries, the most costly attacks are the result of malicious or criminal hackers. Business continuity management and an active security management effort that detects breaches and responds quickly can lower the cost of a breach by nearly $9 per breached record – but that isn’t enough.
Secure Channels Inc., has created a paradigm shift within the technology industry. Secure Channels Inc. is a cybersecurity firm leveraging robust, state-of-the-art patented encryption technologies and authentication solutions compatible with every type of data available today. Fostering innovative disruptive technologies while still being user defined has become a cornerstone for Secure Channels. Developing patented unique processes to harden encryption and envelop resources in such a way as to render the data unbreakable and useless to the hacker, leaving them with only bits and bytes. By using its Proximity Technologies and securing data through IoT Devices, Secure Channels will be delivering real time analytics, payment processing, and data collection to any mobile platform or device. Secure Channels provides impenetrable cybersecurity far in excess of any existing encryption systems available, you would have to go to the future to find such security and Secure Channels would already be there.