According to the latest Ponemon Institute Study, “Cost of a Data Breach”, the costs of data breaches have increased significantly since last year. In fact, the total average cost of a data breach is now $3.8 million, more than an 8.5% increase over the period of a year. The healthcare sector in particular has seen skyrocketing costs as a consequence of the average cost of a single health care record, lost or stolen, is as high as $363, more than twice the average record (another study also notes the rise in the healthcare industry, which found that data breaches during this past year have cost the healthcare industry $6 billion).
The picture is just the same in the United Kingdom. In a survey commissioned by the UK government, 90% of large organizations suffered a breach in the past year alone, compared to 80% in the previous year. Data breach costs have increased even more than in the Ponemon Institute study. The average cost of a breach has more than doubled in the past year for large firms; from between £600,000 and £1.15 million to between £1.46 million and £3.14 million.
The private sector is not the only one suffering from cyberattacks, according to a report released in June. The U.S. public sector experienced 50 times more cyber incidents in 2014 than in any other industry.
Cybersecurity and the Board of Directors
Boards of Directors increasingly see chief executive officers as the ones responsible for implementing and maintaining Cybersecurity procedures and protection measures. More than 40% of 200 corporate directors surveyed by the New York Stock Exchange believe that CEOs are the ones to blame for a data breach, the highest percentage of any other position. The next highest positions were: the Chief Information Officer, the full C-Suite, and then the Chief Information Security Officer. More than 80% of directors report that cybersecurity is discussed at nearly every Board meeting.