Saturday, May 31, 2025, 1:08PM |  58°
MENU
Advertisement

Cost of data breaches increasing to average of $3.8 million, study says

Cost of data breaches increasing to average of $3.8 million, study says

The cost of data breaches is rising for companies around the world as sophisticated thieves target valuable financial and medical records, according to a study released Wednesday.

The total average cost of a data breach is now $3.8 million, up from $3.5 million a year ago, according to data security research organization Ponemon Institute, paid for by International Business Machines Corp.

The direct costs include hiring experts to fix the breach, investigating the cause, setting up hotlines for customers and offering credit monitoring for victims.

Advertisement

Data breaches are becoming more common and significant, with high-profile attacks on Sony Corp, JPMorgan Chase and retailers Target Corp and Home Depot Inc in the past year and a half.

“Most of what’s occurring is through organized crime,” said Caleb Barlow, vice president of IBM Security. “They are probably better funded and better staffed than a lot people who are trying to defend against them.”

IBM, which sells cybersecurity services to companies, has a vested interest in highlighting the costs of data breaches.

The cost of a data breach is now $154 per record lost or stolen, up from $145 last year, according to the study, based on interviews with 350 companies from 11 major countries that had suffered a data breach.

Advertisement

The study’s authors said average costs did not apply to mega-breaches affecting millions of customers, such as those suffered by JPMorgan Chase, Target and Home Depot. Target alone said last year its breach cost $148 million.

The study found that the health care was most at risk for costly breaches, with an average cost per record lost or stolen as high as $363, more than twice the average for all sectors of $154.

That reflects the relatively high value of a person’s medical records on the underground market, said IBM, as Social Security information is much more useful for identity theft than simple names, addresses or credit card numbers.

First Published: May 28, 2015, 4:00 a.m.

RELATED
SHOW COMMENTS (0)  
Join the Conversation
Commenting policy | How to Report Abuse
If you would like your comment to be considered for a published letter to the editor, please send it to letters@post-gazette.com. Letters must be under 250 words and may be edited for length and clarity.
Partners
Advertisement
President Donald Trump arrives to speak at U.S. Steel Mon Valley Works-Irvin Plant, Friday, May 30, 2025, in West Mifflin, Pa.
1
news
Trump announces new tariffs, bonuses and no layoffs in touting U.S. Steel-Nippon deal
The Pirates' Henry Davis reacts to striking out in the eighth inning Friday against the Padres in San Diego.
2
sports
'We gotta go out and earn it': Frustrating loss due to missed call serves as unifying moment for Pirates
Mother-daughter duo Deborah and Victoria Sfamenos graduated from the Community College of Allegheny County in May with degrees in nursing.
3
news
McCandless mother-daughter duo ready to enter nursing field together after CCAC graduation
Rookie running back Kaleb Johnson (20) runs a drill at Steelers Minicamp at the UPMC Rooney Sports Complex on the South Side on Wednesday May 28, 2025.
4
sports
Jason Mackey: Why Steelers running backs could legitimately become a 'great show' in 2025
Pittsburgh Steelers linebacker T.J. Watt (90) talks with linebackers coach Aaron Curry as they walk off the field during halftime of an NFL football game against the Philadelphia Eagles, Sunday, Dec. 15, 2024, in Philadelphia. The Eagles defeated the Steelers 27-13.
5
sports
Paul Zeise: Giving T.J. Watt a historic big-money deal would be bad business for the Steelers
Advertisement
LATEST business
Advertisement
TOP
Email a Story