THE COST OF CLOUD SECURITY FAILURES FOR DATA PROTECTION

16 Jun THE COST OF CLOUD SECURITY FAILURES FOR DATA PROTECTION

According to a study produced by Ponemon for IBM Security, in 2014, organisations had a 22.6% chance of experiencing a breach within two years. By 2019 that percentage had increased by around a third, rising to 29.6%. Furthermore, Gartner projects that between now and 2025 90% of organisations that fail to control public cloud use will share data in a way that is considered inappropriate.
The Ponemon study also found the average cost of a data breach in 2019 was $3.92 million. Of this amount, $1.42 million is in the form of lost business.
However, the average cost of a breach in the US was much higher – $8.19 million, with the cost of lost business also much higher.
Customer churn increased after a data breach, with abnormal customer turnover of 3.9%. The cost of data breaches also varied by sector.
Looking at the cost on a worldwide basis, where the average cost is $3.92 million, costs per sector were as follows:
• Health, $6.45 million
• Financial, $5.86 million
• Energy, industrial, pharma and technology, ranging from $5.6 million to $ 5million
• Education, services, entertainment, ranging from $4 million to $3 million
• Transportation, communication, consumer, media, hospitality, retail, research and public sector, ranging from $3million to $1million