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IBM Study Shows Data Breach Costs on the Rise; Financial Impact Felt for Years

Posted by Jeff Stutzman, Founder | Jul 23, 2019 1:47:19 PM

What does a Data Breach cost?

By the numbers:

  • The Cost of a data breach has risen 12% over the past 5 years and now costs $3.92 million on average.
  • Companies with less than 500 employees suffered losses of more than $2.5 million on average – a potentially crippling amount for small businesses, which typically earn $50 million or less in annual revenue.

The effects of a data breach are felt for years.

  • While an average of 67% of data breach costs were realized within the first year after a breach,
  • 22% accrued in the second year and another
  • 11% accumulated more than two years after a breach. The longtail costs were higher in the second and third years for organizations in highly-regulated environments, such as healthcare, financial services, energy and pharmaceuticals.

I love simple math. 

Get the report here. 

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Topics: data breach, equifax, identity theft, ibm

Written by Jeff Stutzman, Founder

Mr. Stutzman is the Founder and senior information security expert operating as, and supervising virtual CISOs and Managed Security Services to companies as small as three and as large as 7500. Mr. Stutzman is a former Information Warfare focused Navy Intelligence Officer, Project Manager at Cisco working Mergers and Acquisitions, Investigations, and Global Cyber Risk Management. He was the CISO for Northrop Grumman Electronics Sector, a $16 billion global Electronics business; Principal Engineer at Carnegie Mellon’s Software Engineering Institute, and a GS-15 with the US Government serving as Director of the DoD/DIB Collaborative Information Sharing Environment at the DoD Cyber Crime Center. He has performed risk management, cyber investigations and M&A in more than two dozen high-risk cyber threat areas including China, Brazil, the Middle East, and South America. He has been cited in the Wall Street Journal, Wired Magazine, NH Public Radio, and numerous trade publications. He holds a BS from Excelsior College, an MBA from Worcester Polytechnic Institute, and is a Harvard Kennedy School Senior Executive Fellow.