According to a recent report by IBM Security and the Ponemon Institute, Canada is the second most expensive country for businesses affected by data breaches. The report, 2017 Cost of Data Breach Study: Canada, found that the average total cost of a data breach is approximately $5.78 million. In addition, organizations paid about $255 per stolen record.
The report, which examined the costs incurred by 27 Canadian companies from 12 different industry sectors, found that, while the average total cost of data breaches decreased by 4 per cent over the past year, the average size of a breach increased by 3 per cent. Other interesting takeaways include the following:
Certain industries have higher data breach costs.
Companies operating in the services, financial service,s and technology sectors often paid well above the aver $255 per stolen record. Conversely, the cost of data breach for public sector, hospitality and transportation companies were much lower than the average.
Criminal attacks were the root cause of data breaches.
According to the report, 48 per cent of data breaches were caused by malicious or criminal attacks.
Detection and escalation costs increased.
The report found that costs associated with investigative activities, audit services, crisis management and communication increased from $1.94 million to $1.96 million.
Organizations that can contain a breach in less than 30 days save $1.79 million.
Containing a breach can help prevent customer loss, which saves organizations money in the end.
As technology develops, cyber threats will continue to evolve and become more advanced. When cyber attacks occur, they can result in devastating damage.
Knowing and understanding the above data can help you avoid costly and devastating cyber attacks. For further protection, consider getting cyber liability insurance, which has become an essential component of any risk management program.
