Data breach average costs hit $4 million mark

Ponemon finds that the healthcare industry has the highest costs per breached record. Data breach costs are up 29 percent from 2013.

The average cost of a data breach is $4 million, up 29 percent since 2013, according to Ponemon Institute and IBM data.

Ponemon conducted a study of 283 companies and found the 2016 costs related to a data breach has increased to $158 a record, up from $154 in 2015. Ponemon also concluded that there's a 26 percent probability that an enterprise will be hit by one or more data breach of 10,000 records over the next 2 years.

data-breach-costs-2016-by-country.jpg

Among the key findings:

  • Data breaches cost the most in the U.S. at $223 per record on average and $213 in Germany. Brazil and India were the lowest at $100 and $61, respectively.
  • The average cost of a data breach in the U.S. was $7.01 million. In India, a breach costs $1.6 million.
  • Healthcare data breach costs are $355 per record on average and education was $246. Public sector had the lowest data breach costs at $80 a record.
  • 48 percent of breaches were caused by malicious and criminal attacks.
  • Use of encryption and incident response teams cut data breach costs by $16 per record.
  • Companies in France, Japan and Italy had the most difficulty keeping customers after a breach. The cost of lost business was highest in the U.S. at $3.97 per record.
  • How fast a company responds to a data breach affects costs.
data-breach-costs-2016-by-industry.jpg
data-breach-costs-by-cause-2016.jpg

Newsletters

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
See All
See All