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Tech

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.
Written by Larry Dignan, Contributor

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.

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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.
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