It’s the question on everyone’s mind: How secure is your data?
The Federal Bureau of Investigation warned major healthcare providers in September with estimates that private health records sell for 10 times more than credit card information on the black market. Whether you’re worried about your own personal information or the safety of records your company holds, data security should be a concern for every individual and business.
The high cost of hacks is substantial for American companies. In fact, in the Ponemon Institute’s 2014 Global Report on the Cost of Cyber Crime, the U.S. had the highest average cost of cybercrime of any country in the survey at $12.7 million.
The Cost of Data Theft Across Industries
Most often the media focuses attention on retailers and consumer-facing companies, yet cyber crime occurs in virtually every industry. In the Ponemon study, of the 14 sectors listed incurring data theft costs, retail and healthcare were surprisingly absent from the top of the list. In fact, the energy sector came in with the highest average annualized cost of cybercrime with $26.5 million. Defense came in second at $21.9 million, and financial services rounded out the top three with $20.8 million.
Retail came in eighth with $8.6 million in average spending to recover from cyber theft which is more than double the 2013 average. Healthcare’s $6 million ranked second to last on the list. by contrast, was eighth on the list of 14, spending an average of $8.6 million to recover from cyber theft; consumer products, twelfth on the list, spent $6.8 million to make good; and healthcare, at thirteenth, bled $6 million.
How Much Did That Hack Cost?
The 56 million credit card accounts and 53 million email addresses stolen from Home Depot are reportedly costing the company $62 million.
Target’s highly-publicized data breach of 70 million consumer credit cards has cost the company an estimated $148 million.
Experts are predicting that the massive Sony breach will exceed the $1 billion mark.
Anthem may face damage control costs of more than $100 million after a cybersecurity attack exposed the information of about 80 million of its current and former customers.
Protect Your Company’s Private Data
While many of these companies maintain cybersecurity insurance coverage, it may not be enough and should not be the only line of defense. For example, Anthem reportedly maintained $100M in cyber security coverage at the time of the incident, yet is facing costs well beyond that limit.
In our latest white paper, “Meeting Exceptional Security Challenges,” we’re providing a blueprint of security best practices and action steps for companies of all sizes to integrate into their cybersecurity strategy.