Putting a cost on data security can be tricky- in many cases, the possible damage varies from business to business. However, this isn’t any excuse to think that small or medium businesses are somehow immune from incurring large expenses due to poor computer protection. Even if a significant amount of money isn’t lost directly, reputations and relationships can be seriously damaged. However, let us start off by examining just how much you could lose if your organization suffers a data security breach.
Losses as a Business
Data breaches are becoming more and more common in today’s corporate environment and it’s not rare for an organization to become a victim because of poor security practices. Companies in any industry can suffer serious monetary loss by not having encryption software and other security services protecting their sensitive information. In fact, a recent study on data security breaches found that:
The average total per-incident costs in 2009 were $6.75 million, comprised of an average cost of $204 per customer with a jeopardized record… The most expensive data breach within the ambit of the study cost almost a whopping $31 million dollars to resolve.
The research also found that breaches by malicious attacks and botnets doubled from 2008 to 2009 and are only likely to keep increasing. As a result, use of encryption software has been on the rise as well. 58% of the respondents in the study reported that they’re using encryption to add extra security, an increase from 44% of respondents in 2008. The study closes with a powerful thought:
At the end of the day, while the press may not be reporting as much on data breaches as in the past, these breaches certainly are not going away. They must be handled proactively.
Other Costs to Consider
On top facing losses from an operational standpoint, you’re liable to face additional penalties. Even if court trials are avoidable, the local government may be able to fine your business. In the United Kingdom, a new law will become effective in early April providing British businesses yet another reason to invest in data encryption software. The BBC reports:
The Information Commissioner’s Office will be able to issue fines of up to £500,000 for serious data security breaches…. Other factors will include the size and finances of the organisation at fault…. Individual cases will also be assessed on whether the breach was accidental or deliberate, and how much distress the leak of information caused.
The law is meant to act as a deterrent, encouraging companies to make sure their data is secure and their customers are protected. The law should also be an incentives for companies to realize that data encryption is important and plays a significant role in protecting the interests of any business. It’s very likely that other countries will follow and impose similar legislation to lower the number of security breaches. If you can avoid fines and losses of millions of dollars, investing in our hard drive encryption software is well worth it. Sign up for a free trial and make sure your organization doesn’t end up having to experience the cost of a data security breach first hand!
Further Reading
Data security breaches cost real money [Lexology]
Data losses to incur fines of up to £500,000 [BBC News]
Internet Security [Flickr via BlakeWilliams]
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