The cost of data breaches and digital information theft – including lost business costs – continues to rise in the United States. In the 2017 Cost of Data Breach Study: United States conducted by the Ponemon Institute, it was estimated that the average total cost of a data breach has reached $7.35 million – a 5% increase from the previous year. Much of this cost relates to direct and indirect costs associated with a breach, but nearly half of this expense is associated with opportunity cost or lost business costs. While the global conversation often focuses on network security, we also must continue discussing physical security and the importance of certified data destruction. After all, the last stage of your data’s lifecycle poses a significant risk for data theft.
Understanding Lost Business Costs
In the Ponemon study, they broke down the average cost of digital information loss (including malicious or criminal attack, employee negligence, and system failures) into eleven general cost categories. Of these categories, nine were related to direct or indirect costs, leaving only two related to opportunity costs. However, those two categories made up 49% of the total expense.
Lost Customer Business – 41%
Customer Acquisition Costs – 8%
Investigation & Forensics – 16%
Legal Defense Costs – 17%
(Combined) Audit & Consulting Services, Outbound & Inbound Contact Costs, Public Relations, Legal Compliance Costs, Identity Protection Services, and Free/Discounted Services – 18%
In the Ponemon study, they broke down the average cost of digital information loss (including malicious or criminal attack, employee negligence, and system failures) into eleven general cost categories. Of these categories, nine were related to direct or indirect costs, leaving only two related to opportunity costs. However, those two categories made up 49% of the total expense.
Reestablishing Trust with Your Customers
Working to reestablish trust with your customers and rebuilding your reputation requires more than a good public relations campaign. First, you must be able to prove to your customers that you’re taking every effort to protect their information at every stage of the data lifecycle.
At E-Waste Security, we help our clients rebuild that trust by providing the highest level of security during the last stage of your data lifecycle. Our Certified Data Destruction Services adhere to the strict compliance regulations of all data privacy laws – including HIPAA, PCI-DSS, NIST 800-88, and GLBA.
We take compliance to the next level with our Certified Data Destruction process by protecting chain-of-custody during collection and destruction. We believe it’s essential to come to you – bringing our hard drive shredding equipment on-site so you can witness and verify that secure destruction has been completed. Our NAID certification holds us to the highest standards and ensures the safety of your sensitive information.
Reliable and Certified Data Destruction
E-Waste Security is a hard drive destruction and IT asset disposition company based in Los Angeles, CA. We provide full-service Onsite Data Destruction, Hard Drive Shredding, and IT Asset Disposition (ITAD) services, including the purchase, removal, and recycling of computer equipment, to provide our clients with a convenient and secure solution for their decommissioning projects.
Contact Us Today for a quote.