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.