Data breaches often cost organizations much more than expected. Insurance may help out, but cyber insurance groups have been known to refuse claims. When it comes to the true costs of a data breach, here’s what you should be aware of:
- The price tag per breach regularly exceeds $300,000. In 2019, cyber attacks cost firms an average of $4.1 million per firm.
- A study shows that automakers, retain/hospitality, energy/utilities groups and healthcare related organizations generally experience the highest breach costs.
- Financial losses, breach mitigation costs, fines, and reputational damage only scratch the surface in terms of the true costs involved in a breach.
- The third party ‘ripple effect’ or ‘domino effect’ can lead to additional breach related unravelings and challenges.
Depending on the specifics of the incident, third-party groups may pursue litigation.
- Stock prices can plunge.
- Lost business. While customers may not choose to part with the company immediately, broken trust can lead to customer churn over time.
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