Data Breaches Are More Costly Than Ever

The Washington Post cites a study by the Ponemon Institute about the cost of Identity Theft to businesses. As you may know, this is some of the information Texas Attorney General Greg Abbott wants you to know and which I covered in your training class. Notice that "the company's stock lost 42 percent of its value" after the announcement and that mitigating damages like this are the key reason your employer had me come in to teach your class:

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/02/AR2009020203064.html?hpid=sec-tech

Organizations that experienced a data breach in 2008 paid an average of $6.6 million last year to rebuild their brand image and retain customers, according to a new study.

Ponemon Institute, a Tucson-based research firm, looked at 43 organizations that reported a data breach last year and found that roughly $202 was spent on each consumer record compromised.