Data breaches cost UK firms £64 per file lost

Study by PGP and the Ponemon Institute reveals financial damage caused to UK firms by data breaches

Data breaches cost UK firms an average of £64 per file lost

Data breaches in 2009 cost UK firms an average of £64 for every record lost, research has claimed.

The study, conducted by the Ponemon Institute on behalf of encryption software vendor PGP, also revealed that data breaches cost UK firms seven per cent more last year than in 2008.

Dr. Larry Ponemon, chairman and founder of The Ponemon Institute, said: “This study shows that the financial impact of data breaches is hitting UK organisations harder and harder each year.”

The study’s findings are based on the costs accrued by 33 firms during real-life data loss incidents between May 2009 and January 2010.

Of the 33 firms that participated, 25 were private sector-based and eight were public sector organisations.

Between the two groups, the cost per file was found to be £10 more for private sector firms than public sector companies where the average cost stands at £59.

Poneman added: “In the commercial sector the costs associated with customer churn and attracting new customers are particularly acute, but our research suggests these firms are getting better at detection, remediation and customer communications.”