The cost of Data Breach Response is rising and with a deeper analysis of the most recent Net Diligence report on data breach claims activity shows some of the sources.
“Of the $3.7 million average data breach cost in this year’s study, fully $2.1 million or 57% of the total cost can be chalked up to legal settlements related to class action lawsuits from the impacted individuals. While responding to data breaches can be expensive projects, this particular statistic leads me to wonder whether some organizations should focus more on their breach response strategies, specifically to better address the real and perceived harms that are experienced by the affected individuals.”
The report is unique in that it derives its data from insurance claims rather than data from surveys.
You can read the whole article on the report, the causes of the rising costs and opportunities to mitigate those costs/risks here: Legal Settlements Over Half of Breach Costs. What to Do About This?