– why do data breaches cost millions of dollars?
In: 3548
TLDR: data breaches cost so much bc victim orgs aren’t prepared and haven’t invested appropriately
For a small org, it is approx $500k to get started. That breaks out to:
$135k for IR team (300hrs)
$250k for legal to talk to 50 AGs offices
$115k for IT support
Legal will likely end up at $2M or more, not including any litigation
IR services could double or triple easily
IT support could reasonably grow to $1M
None of these costs include:
Forensic tools
Emergency hardware or software to get back running
Ransomware payment or services to pay ransomware
Crisis management services
PR and communication services
Notification services
Hardware and software upgrades
Outside support services
Attribution services (if required)
The shorter answer is that data breaches cost so much bc of the amount of work required to stop and clean them up and the hourly rates or the service providers that clean up data breaches.
I have more than 20yrs in this space.
Latest Answers