– why do data breaches cost millions of dollars?

Question

– why do data breaches cost millions of dollars?

In: 3548

Answer 1

There are a combination of reasons that combine to result in those numbers.

Depending on what nation the company is in, there are regulatory penalties that can be applied if its shown the company didn’t take required precautions to protect the information.

There are potential civil law suits from the people affected by the breach.

There is a loss of business after a breach too. Customers are less likely to do business if they are worried their information is at risk. Other companies become more reluctant becuase they don’t want the association.

All of these factors can result in significant financial loss to companies that experience data breaches.