A new study reveals while the average cost of a data breach is $3.86 million, “mega breaches” of 1 million to 40 million lost records is much higher, ranging from $40 million to $4,350 million. The study, conducted by IBM Security and Ponemon, surveyed 400 companies that suffered data breaches.
Overall, the study found that hidden costs in data breaches — such as lost business, negative impact on reputation, and employee time spent on recovery — are difficult and expensive to manage. For example, the study found that a third of the cost of “mega breaches” (over 1 million lost records) were derived from lost business.
In the past five years, the number of mega breaches has increased from nine mega breaches in 2013 to 16 mega breaches in 2017.
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