The average cost incurred for each lost or stolen record containing sensitive and confidential information increased 6% this year compared with 2014, from a consolidated average of $145 to $154, according to a new report from Ponemon Institute that was sponsored by IBM.
The annual Cost of Data Breach Study: Global Analysis, surveyed 350 companies in 11 countries, and showed that the average consolidated total cost of a data breach is $3.8 million The healthcare industry had the highest cost per stolen record, with an average cost of $363. Retailers have seen their average cost per stolen record rise dramatically from $105 last year to $165 in this year’s study.
“Based on our field research, we identified three major reasons why the cost keeps climbing,” Larry Ponemon, chairman and founder of Ponemon Institute, said in a statement.
“First, cyber attacks are increasing both in frequency and the cost it requires to resolve these security incidents,” Ponemon said. “Second, the financial consequences of losing customers in the aftermath of a breach are having a greater impact on the cost. Third, more companies are incurring higher costs in their forensic and investigative activities, assessments and crisis team management.”
Business continuity management plays an important role in reducing the cost of a data breach, according to the report. The research shows that having business continuity management involved in the remediation of a breach can reduce the cost by an average of $7.10 per compromised record.
The IBM-Ponemon report emerges the same week that the IRS revealed a data breach that may impact 100,000 people.