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Data-Breach Costs Rising, Study Finds

BobB-nw writes to tell us that a recent study of 43 companies that suffered from data breaches last year showed the total cost of dealing with the breach to have risen to $6.6 million per incident. The cost is about $202 per record compromised for first timers, while the repeat offenders seem to have their mojo down and only suffer about $192 per record. With 88% of all data loss cases for 2008 being traced back to insider negligence it's a wonder that a little upfront money isn't being directed at prevention; guess as soon as they idiot-proof it someone will build a better idiot.

17 of 67 comments (clear)

  1. BS by pondermaster · · Score: 5, Insightful

    "$6.6 million per incident"
    Well, that's what they told the insurance company.

  2. "idiot proof" by mcfatboy93 · · Score: 4, Interesting

    If they need to try to Idiot-proof a system take out the "Idiot". If these companies hire more technology inclined workers (people who read /.) they they won't have this problem as often.

    --
    Its not my fault, someone put a wall in my way.
    1. Re:"idiot proof" by eln · · Score: 4, Funny

      If they need to try to Idiot-proof a system take out the "Idiot". If these companies hire more technology inclined workers (people who read /.) they they won't have this problem as often.

      Maybe, but then they'd have to deal with everyone putting goatse links all over the company newsletter and sending out gay porn featuring the CEO of the company, so there's a little bit of a downside too.

      On the other hand, most Slashdotters never leave the basement, so you would save on office space.

    2. Re:"idiot proof" by Jurily · · Score: 2, Funny

      If these companies hire more technology inclined workers (people who read /.) they they won't have this problem as often.

      "shut the fuck up (Score:-1, Troll)
      by Anonymous Coward on 2009-02-02 21:34 (#26700021)
      you bunch of slashfaggots don't know anything. shut your fucking mouths and get an education instead of making up a bunch of lies."

      He's going to be the CEO.

    3. Re:"idiot proof" by Korin43 · · Score: 2, Insightful

      My guess is that it's cheaper to leak confidential data all the time because of incompetence than to hire competent employees.

    4. Re:"idiot proof" by gzipped_tar · · Score: 2, Funny

      and sending out gay porn featuring the CEO of the company

      Featuring the CEO of the company? I say "the CEO and the company"!!!

      --
      Colorless green Cthulhu waits dreaming furiously.
    5. Re:"idiot proof" by olddotter · · Score: 2, Interesting

      I had an old manager who was both lauded and vilified for once saying "The company needs to hire smarter employees." I think this is part of the price to pay for trying to save on labor costs by hiring people who are almost but not quiet qualified to do their jobs.

  3. As a network admin... by sempiterna · · Score: 3, Interesting

    As a network admin for a mid-sized company, we spend quite a lot of money every year with PCI Compliance, and outside intrusion detection, and our customers want even more every year. It's expensive and quite often a hassle to maintain good security. Many vendors have told us to 'just open it up' or 'Naw,that issue wont cause a problem' We schedule days when our operational servers will be down for windows updates, and our clients yell and scream because they are down. I've not yet found a way to install windows security patches, firewall security patches, and overall general security upgrades without interruption. I sincerely wish our clients would understand that we want to make money also, and keeping the clients happy AND SECURE, makes us money. So we have a reason for rebooting that terminal server once a month.

  4. Not suprising at all... by jhfry · · Score: 4, Interesting

    it's a wonder that a little upfront money isn't being directed at prevention

    No it's not... Only in the last few years have management began to look at IT as something more than a "support" department. I have worked in companies where the IT department head reported to the Facilities Management Director (think landscaping and custodial services), who reported to the VP of Finance. Essentially, IT had no influence or budget to speak of, even when we pointed out that we were ripe for the picking when it concerned customer data and trade secrets.

    Jump forward a few years, and now that same company has an VP of Information Technology and an annual IT budget of 4X the Finance department's total budget.

    It's no surprise that it's still taking time to get pro-active expenditures approved. What I'm actually surprised about is that most Presidents/CEO's are actually aware of the risks now. If not for a few recent high profile leaks, most IT departments couldn't get any money for such projects.

    Finally, there is no evidence that upfront money wasn't spent. Most companies just haven't figured out how to adequately secure their data, not for lack of resources or trying, but because there isn't a formula for guaranteed success.

    --
    Sometimes the best solution is to stop wasting time looking for an easy solution.
    1. Re:Not suprising at all... by tsstahl · · Score: 3, Interesting

      I would probably start a unit in charge of security -- ALL Security, and have them monitor and interact with IT and janitorial and anyone else to manage security.

      Great, so to work for you, in addition to Linux/Windows certs, I now need a Johnson Controls cert, journeyman electricians papers, and an endorsement for use of lethal force?

      Do you really want your net admin to carry a gun and/or taser backed up with a hammer? Just sayin...

    2. Re:Not suprising at all... by vux984 · · Score: 2, Insightful

      Great, so to work for you, in addition to Linux/Windows certs, I now need a Johnson Controls cert, journeyman electricians papers, and an endorsement for use of lethal force?

      Only if your applying to be a one man security ninja hero or something. It would be far more likely though to have more than one person, each with different areas of expertise.

      Do you really want your net admin to carry a gun and/or taser backed up with a hammer? Just sayin...

      Not at all. But I also don't want my net security team to be part of the same group that fixes broken PCs either. And the guy in charge of physical security... I don't want him fixing broken toilets, or weeding the flower beds.

      That was precisely my original point. That elevating the 'IT department' entirely is a silly move. The people who spend their time finding lost icons for execs, clearing printer jams, and replacing toner and mice, etc actually belong in facilities management reporting to the same guy as the custodial stuff.

  5. negligence by Presto+Vivace · · Score: 2, Insightful

    With 88% of all data loss cases for 2008 being traced back to insider negligence It is getting harder and harder for me to dismiss the possibility that some of this is the result of inside jobs.

  6. Re:Sad thing is by DavidR1991 · · Score: 2, Insightful

    Although I generally agree that Windows is not the "winner" when it comes to running a server (or any business machine) it must be said that correlation is not causation

  7. Re:Corporate Bail Outs by Znork · · Score: 4, Informative

    Oh, no worries, cooked books taste just as good with SOX as without. As predicted, SOX hasn't changed jack; take a look at the average financial institution today and they have the vast majority of their liabilities in special purpose off balance sheet vehicles (see, as long as you only own 49% of the subsidiary, and the rest is owned by your cousins neighbours grammas old dog you don't have to bring the liabilities onto your balance sheet).

    And when rules to change that (strongly opposed by Citigroup, etc) were supposed to enter into force last november, it was suddenly 'impractical' and got delayed by the FASB.

    Right, 'impractical' as in 'the banks are insolvent and unless they get to cook their books it's going to be bloody obvious that actual bailout requirements are in the tens of trillions, which might be a bit unpalatable for taxpayers'.

    So SOX has merely added a bunch of expensive administrative crap with no actual extra security for stock holders; they'll get screwed anyway as politically expedient.

  8. At an IT Manager I say this: by erroneus · · Score: 4, Insightful

    I find the problem has several facets.

    1. Nearly everything requires Windows
    2. Too many Windows applications want or require administrator privileges
    3. Users like little gadget software so much they think they need them
    4. Microsoft Internet Explorer (need I say more?)

    Malware is ALWAYS an internal network security problem. You can bullet-proof your web site from intrusion all you like but when the threat comes from an internal machine on your network, you're done for. There are lots of ways to address the problem, but none of them make users or executives happy. For much data processing, I'd like to see a return of the green CRT and keyboard. They don't crash (easily) and don't get infected with malware and keyloggers. Sure, they don't tell you what the weather is outside, but this is sensitive/valuable data being processed. We don't WANT those things connected.

    User technology culture is out of hand and does not address technical/functional needs.

  9. Cost by DoofusOfDeath · · Score: 3, Funny

    I guess data doesn't just want to be "free" :)

  10. Re:Sad thing is by jellomizer · · Score: 2, Insightful

    So who will need to pay me if my Linux box get hacked.
    And yes a poorly configured/administrator Linux system can get hacked into, just as easily as a Windows system.
    The problem is a lot of these places that get hacked have a pathetic Understaffed/underfunded IT team.

    If you can get someone who know hows to use Linux they can normally keep a windows network secure too. But more often then you think these companies are run by the guy who currently knows the most about computers at the time and becomes the IT guy by default.

    That the case if the person who doesn't know what is going on will choose windows by default without any consideration of other platforms. A good IT person may still choose windows for it advantages over Linux but knows where it is week and works to secure those points.

    It isn't the OS it is more who maintains the OS.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.