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According to the Cost of a Data Breach Survey, [3] in which 49 U.S. companies in 14 different industry sectors participated, they noticed that: 39% of companies say negligence was the primary cause of data breaches; Malicious or criminal attacks account for 37 percent of total breaches. The average cost of a breach is $5.5 million.
Some experts have argued that the evidence suggests there is not enough direct costs or reputational damage from data breaches to sufficiently incentivize their prevention. [ 100 ] [ 101 ] Estimating the cost of data breaches is difficult, both because not all breaches are reported and also because calculating the impact of breaches in ...
It is estimated that the average cost of a data breach will be over $150 million by 2020, with the global annual cost forecast to be $2.1 trillion. [ 2 ] [ 3 ] As a result of data breaches, it is estimated that in first half of 2018 alone, about 4.5 billion records were exposed. [ 4 ]
For example, the number of data breaches reported in 2020 alone reached a record high of 3,932, a 48% increase compared to the previous year, with over 37 billion records exposed globally, and also the average cost of a data breach in 2020 was estimated to be $3.86 million, with an average time to identify and contain a breach of 280 days. [22]
The U.S. Government Accountability Office says it was notified of a data breach by IT contractor CGI Federal. The GAO said that about 6,000 people, "primarily current and former GAO employees from ...
Example: Consider a data value of €1,000,000, with an attack probability of 15% and an 80% chance of a successful breach. The potential loss is €1,000,000 × 0.15 × 0.8 = €120,000. Based on the Gordon-Loeb model, the company’s security investment should not exceed €120,000 × 0.37 = €44,000.
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