CAPE TOWN – With data breaches becoming commonplace it seems as if businesses need to now consider not whether they will be victims of a data breach but rather when.
People doing business with any company expect them to keep their data safe. So when there is a data breach it results in not only a large cost to the company but also a massive loss of trust by clients, many of whom will never deal with the company again.
Recent research by the US’s Ponemon Institute, which conducts independent research on data protection, showed that a data breach costs South African companies on average $3.06m or nearly R50m. By comparison, the average data breach in the UK costs $3.88m (R60m), Germany $4.78m (R73m) and in the United States, $8.19m (R130m), the most of all countries.
The costs of data breaches are so high because there are four cost components to any data breach: