Data Leak Consequences and Steps to Prevent such Financial Impact
In the digital age, organisations are increasingly becoming targets for cyber attacks, with the potential cost of a data breach escalating significantly. A study by The Ponemon Institute in 2015 found that the average cost of a data breach globally was approximately $3.79 million. This figure has since risen, with recent studies showing it has reached over $6 million globally by 2024-2025.
The Ponemon Institute's report also highlighted that the average cost per lost or stolen record rose from £95 in 2014 to £104 in 2015. This underscores the financial impact that a data breach can have on an organisation.
One of the key findings from the report is the importance of a zero trust approach in cybersecurity. Working in a zero trust environment makes it harder for hackers to make their way into a network and hide. This approach, which can be implemented by firewalls, takes away the automatic assumption that an action or actions should be trusted.
According to Wieland Alge, VP & GM EMEA, Barracuda Networks, organisations should work in a zero trust environment, treating every action with the same degree of suspicion. This means that every piece of software and hardware used could be a potential route in for hackers.
The report also revealed that lost business costs, including customer turnover, acquisition activities, and reputation losses, increased from £950,000 in 2014 to £1.07 million in 2015. This highlights the importance of not only securing an organisation's data, but also maintaining its reputation.
Sony Pictures provides a stark example of the financial impact of a data breach. In 2014, the company predicted that a cyber attack would cost $35M (£23M) for the full fiscal year.
To mitigate the risk of a data breach, organisations are advised to create a dedicated budget for cybersecurity. This will enable them to invest in the correct security solutions and procedures, as well as educate their staff about emerging threats. Staff should be trained to remain vigilant and question anything suspicious in their inbox or on the web, particularly unexpected emails with attachments.
The total average organisational cost of a data breach increased to £2.37 million in 2015, up from £2.21 million in 2014. Detection and escalation costs also rose from £520,000 to £550,000 in 2015. These figures underscore the importance of investing in cybersecurity to avoid paying out fees following a breach.
In conclusion, the 2015 Ponemon Institute report provides valuable insight into the financial cost of data breaches and the importance of a zero trust approach to cybersecurity. Organisations need to take security seriously to avoid becoming the next organisation at the center of a data breach story.
- In the digital age, the cost of a data breach is escalating in the industry, with the average cost globally reaching over $6 million by 2024-2025, highlighting the financial impact on businesses.
- To mitigate this risk, organisations should create a dedicated budget for cybersecurity, investing in technology solutions, procedures, and staff education to remain vigilant in the face of emerging threats.
- The importance of a zero trust approach in cybersecurity is emphasized, as it makes it harder for hackers to infiltrate networks and helps maintain an organisation's reputation in the field of data-and-cloud-computing.
