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1 1 Cost of Data Breach Study 2014 By Digital Empowerment Foundation
2 IBM, in association with the Ponemon Institute released its 2014 Cost of Data Breach Study which aims to measure the cost that companies incur during a data breach. A breach is defined as an event in which an individual s name plus a medical record and/or a financial record or debit card is potentially put at risk either in electronic or paper format. In our study, we have identified three main causes of a data breach. These are a malicious or criminal attack, system glitch or human error. The costs of a data breach can vary according to the cause and the safeguards in place at the time of the data breach. 2 This study was conducted using extensive qualitative questionnaires in 314 major companies across 10 countries. Country Average Number of breached records USA United Arab Emirates and Saudi Arabia India Germany United Kingdom Brazil France Australia Italy Japan Average number of breached records USA United Arab Emirates and Saudi Arabia India Germany United Kingdom Brazil France Australia Italy Japan US$ 29, US$ 28, US$ 26, US$ 24, US$ 23, US$ 22, US$ 22, US$ 20, US$ 19, US$ 18,
3 The study shows that the USA, Arabian Region and India have the highest average number of data breaches. Japan has the lowest. the average per capita cost of a data breach has increased to $145 from $136 last year. The USA and Germany have the highest per capita cost of data breach at $ 201 and $195 respectively. India has the lowest cost per capita at $ Country Per capita cost (2013) Per capita breach (2014) USA Germany France United Kingdom Italy Australia Japan United Arab Emirates and Saudi Arabia No Data 109 Brazil India USA Germany France United Kingdom Italy Australia Japan United Arab Emirates and Saudi Arabia Brazil India Per capita cost (2013) Per capita breach (2014) US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ data from UAE is not available
4 4 The U.S. sample experienced the highest total average cost at more than $5.85 million, followed by Germany at $4.74 million. In sharp contrast, samples of Brazilian and Indian companies experienced the lowest total average cost at $1.61 million and $1.37 million, respectively. Country Average total cost (US$ 000,000 s) Average total cost (US$ 000,000 s) USA Germany France United Kingdom United Arab Emirates and Saudi Arabia No Data 3.12 Italy Australia Japan Brazil India Average total cost (US$ 000,000 s) Average total cost (US$ 000,000 s) US$ 5.85 US$ 5.40 US$ US$ data from UAE is not available 3 US$ 4.19 US$ 3.97 US$ 3.68 US$ 3.40 US$ 3.12 US$ 2.69 US$ US$ US$ 2.40 US$ 2.36 US$ US$ 1.61 US$ 1.37 US$ 1.18 US$ USA France United Arab Emirates and Saudi Arabia Australia Brazil
5 Heavily regulated industries such as healthcare, education, pharmaceutical and financial services had a per capita data breach cost substantially above the overall mean of $145. Public sector organisations and retail companies had a per capita cost well below the overall mean value. 5 Industry Classification Per Capita cost of data breaches Healthcare 359 Education 294 Pharmaceutical 227 Financial 206 Communications 177 industrial 160 Comsumer 155 Services 145 Energy 141 Technology 138 Media 137 Hospitality 122 Transportation 121 Research 119 Retail 105 Public 100 Healthcare Education Pharmaceutical Financial Communications industrial Comsumer Services Energy Technology Media Hospitality Transportation Research Retail Public Per Capita cost of data breaches (US$) US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
6 Organisations in certain countries are more likely to have a data breach.india and Brazil appear to have the highest estimated probability of occurrence. Germany and Australia have the lowest probability. The small sample size prevents us from generalising country differences, the estimated likelihood of a material data breach varies considerably across countries. 6 Country Probability of a data breach involving 10,000 records minimum India Brazil France Italy Japan United Arab Emirates and Saudi Arabia United Kingdom USA Australia Germany Probability of a data breach involving 10,000 records minimum India France Japan United Kingdom Australia
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