The cost of security breaches
11 February 2016
1 min read
Last year Penton Research conducted a survey of executive management and IT professionals. The research collated companies’ views on securing devices and computers, as well as the severity and costs to businesses when a security breach unfolds.
The research discovered that more than one-fourth of those experiencing a hardware security breach reported having data stolen (29%) and/or experienced a halt of operations (29%). Of those companies that reported a software security breach, 19% experienced stolen data and 27% reported a resulting halt in operations.
Companies that experienced a halt in operations reported that these lasted from 30-35 minutes or 4-5 hours to one or two days, one week or even as long as 14 days. The survey also collected candid responses from company management regarding the severity and effects when security breaches occurred.
Below are some of the most noteworthy statements gathered:
Impact of Hardware Security Breaches
- Customers not using credit cards
- Exposed need to hire professional IT services
- Lost sales – inability to accept orders
- Lost some data
- Lost credibility that also potentially decreases the revenue
- Money changed from accounts uncontrollably
Impact of Software Security Breaches
- Approximately $30,000 (one day of payroll)
- Fines, fees and loss of reputation. We were able to cover the costs, through insurance but still feel the consequence of the loss of reputation
- Files on network drives encrypted by an encrypted virus
- Money was diverted to many unknown accounts
- $2.5 million in SLA charges, unknown amount of lost-ecommerce transactions
- Affected stock price