Every person
who is directly or indirectly have linked with computer technology must be
aware with the fact that a data breach is a hazardous incident. But, no one has
been able to estimate the perfect loss sustained by the victim. There have been
several studies to approximate the cost of data breach. The most cited study
regarding data breach has been done by the Ponemon Institute. As per the report
of 2009-2011, the direct cost per breached record was 59 per data breach and
the indirect cost per breached record was 135. The global payment faced a
breach in March 2012 that leaked the record of 1.5 million card holders. Lately
it was disclosed that some number of merchant accounts have also been affected,
resulting a temporary removal from the PCI list. Although in the end of the day
after facing all the trouble, they were able to continue their business as
before.
Let’s discuss what is direct and
indirect costs are and how we categorize the both costs?
The direct
costs are the expanses that are made physically by the company. These expanses
found a proper place after calculation in financial books. These costs include
payment of insurance, expanses paid for data protection, payments to partner,
expanses made filing suit or paying fines. There can be many other direct
losses which are recorded as per actual figures not by estimation. The Global
Payment expensed $92.7 million till now. Out of that $92.7 million, $20 million
was recouped by insurance, $35.6 million were the charges from the cards, $77.1
million was spent on ID protection and there were some other direct cost
included in the loss. So adding up and subtracting the costs, it turned out
that the cost of direct loss was about $62 per record.
Indirect
costs does not typically exist, they are an estimation of the future loss due
to the loss of people’s trust, goodwill in the market and other things. The
indirect cost does not find any real place in the financial records except the
goodwill which is recorded with an estimated figure. A wise businessman will
rate his goodwill in the market as the most precious asset.
A
businessman does not know the importance of his records until he suffers a
breach. The true value of the information is discovered in the black market.
Data from a well to do company can be very handy for a rival company, the
competitor can spend millions of Dollars to get the inside information of the
company. Except the data leakage by mistake, the evil hackers can access your
computer by malware viruses and links. An email containing links can show
hackers the way to their data if they are clicked. An online hacking is
difficult to tackle; however, one can make his/her data on their hard drives
fully secure. Using software that can Password Protect File can make all the records secure that he file
contains.
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