February 25, 2008
Research carried out with 21 companies in the UK has revealed that the average cost of a data security breach in 2007 was £1.4 ($2.75 US) million. That equates to around £47 ($92 US) for every single record stolen or exposed.
Companies in the financial sector, which are at a higher risk of a breach, have a cost per stolen record of £55.
The Ponemon Institute, which conducted the research, estimates customer churn rates to go up by an average of 2.5 per cent after a data loss, but the worst example in the UK saw churn rates go up by seven per cent. The size of the losses examined ranged from 2,500 records to more than 125,000 and costs ranged from £84,000 to £3.8m.
February 21, 2008
A committee from the UK’s House of Lords has branded the government ‘complacent’ when it comes to e-crime. The committee now wants to force ministers to take action to better secure sensitive data.
Following a report from the House of Lords last year that the UK government wasn’t doing enough on security, the committee has accused ministers of being slow to react, calling the response a ‘huge disappointment’. According to Lord Erroll, none of the committee’s recommendations has yet been put into practice.
As a result, the committee is now re-opening its inquiry, inviting senior civil servants to explain why action has not been taken.
February 18, 2008
An arbitration firm in the UK is encouraging citizens to sue the government for having lost their data. The company is selling packs at £5.99 which it claims will help some 25 million recent victims create a legal case for compensation.
There are mixed views within the legal world as to whether this scheme will prove effective, but it is perhaps the first example of a growing trend where consumers will hold firms financially accountable for any data leakage. As such, it won’t just be public sector bodies taking a close interest in this case, but private firms as well.
