March 20, 2012 at 9:40 AM ET
If you've been following tech and security news lately, you might feel as if nothing is safe or sacred anymore. Yet for some reason, more and more of us remain loyal to companies after they've suffered a data breach and failed to protect our information.
Security software maker Symantec and the Ponemon Institute have studied the cost of data breaches for over half a decade and on Tuesday the two organizations released their latest report, which was based on the "actual data breach experiences of 49 U.S. companies from 14 different industry sectors."
The report reveals that the cost of a data breach has gone down, for the first time in seven years. "[B]oth the organizational cost of data breach and the cost per lost or stolen record have declined," it is explained. "The organizational cost has declined from $7.2 million to $5.5 million and the cost per record has declined from $214 to $194."
Dr. Larry Ponemon, chairman and founder of the Ponemon Institute, suggests that there is a correlation between an organization's data breach cost and whether or not it employs a chief information security officer (CISO). "As organizations of all sizes battle an uptick in both internal and external threats, it makes sense that having the proper security leadership in place can help address these challenges," he adds.
The reduced data breach cost could also be related to the fact that fewer customers are remaining loyal to companies that have a data breach, "for the first time."
The skeptical side of me screams that this shouldn't be surprising. After all, where should we be taking our business when it feels as if every company is suffering from some sort of security woes?
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