Data breaches cost $6.6 million on average, survey finds
Organizations experiencing a data breach can pay $6 million for lost business and cleanup, according to Ponemon/PGP.
It costs $6.6 million on average when an organization suffers a data breach, and more than $200 per compromised record, according to a survey conducted by the Ponemon Institute that's due to be released on Monday.
The report, sponsored by PGP Corp., examined the costs incurred by 43 organizations that experienced a data breach. Breaches ranged as high as 113,000 records and the average total cost per company ranged from more than $613,000 per breach to nearly $32 million.
Most of the cost is due to lost business, which averaged nearly $4.6 million, the report found.
Forty-four percent of the organizations surveyed reported a breach by a third party, such as a contractor or outsourcer, and more than 88 percent of all cases this year involved incidents resulting from insider negligence, according to the study.
McAfee estimated that cybercrime costs corporations $1 trillion globally each year.