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    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off

    Symantec Corp. (NASDAQ: SYMC) and the Ponemon Institute have released the findings of the 2010 Annual Study: U.S. Cost of a Data Breach, which reveals data breaches grew more costly for the fifth year in a row. The average organizational cost of a data breach increased to $7.2 million and cost companies an average of $214 per compromised record, markedly higher when compared to $204 in 2009. The study also found that for the second straight year organizations' need to respond rapidly to data breaches drove the associated costs higher. The sixth annual Ponemon Cost of a Data Breach report is based on the actual data breach experiences of 51 U.S. companies from 15 different industry sectors.

    This slideshow highlights key findings from the study.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 1

    Click through for results from a data breach survey conducted by the Ponemon Institute and sponsored by Symantec.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 2

    Rapid response to data breaches is costing companies 54 percent more per record than companies that moved more slowly.

    Forty-three percent of companies notified victims within one month of discovering the breach, up seven points from 2009. In 2010, these quick responders had a per-record cost of $268, up 22 percent from 2009; companies that took longer paid $174 per record, down 11 percent.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 3

    Malicious or criminal attacks are the most expensive and are on the rise.

    In this year's study, 31 percent of all cases involved a malicious or criminal act, up seven points from 2009, and averaged $318 per record, up 43 percent from 2009.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 4

    Negligence remains the most common threat.

    The number of breaches caused by negligence edged up one point to 41 percent and averaged $196 per record, up 27 percent from 2009. This steady trend reflects the ongoing challenge of ensuring employee and partner compliance with security policies.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 5

    Companies are more vigilant about preventing system failures.

    System failure dropped nine points to 27 percent in 2010. This trend indicates organizations may be more conscientious in ensuring their systems can prevent and mitigate breaches through new security technologies and compliance with security policies and regulations.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 6

    Data breach costs have continued to rise.

    The average organizational cost of a data breach this year increased to $7.2 million, up seven percent from $6.8 million in 2009. Total breach costs have grown every year since 2006. Data breaches in 2010 cost companies an average of $214 per compromised record, up $10 (5 percent) from last year.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 7

    Encryption and other technologies are gaining ground as post-breach remedies, but training and awareness programs remain the most popular.

    Sixty-three percent of respondents use training and awareness programs after data breaches, down four points from 2009. Encryption is the second most implemented preventive measure as a result of a data breach, with 61 percent. Both encryption and data loss prevention (DLP) solutions have increased 17 percent since 2008.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 8

    Symantec recommends organizations implement the following best practices, whether or not they have suffered a data breach:

    Best Practice #1: Assess risks by identifying and classifying confidential information.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 9

    Best Practice #2: Educate employees on information protection policies and procedures; then hold them accountable.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 10

    Best Practice #3: Deploy data loss prevention technologies which enable policy compliance and enforcement.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 11

    Best Practice #4: Proactively encrypt laptops to minimize consequences of a lost device.

    Data Breach Costs Hit $7.2 Million and Show No Sign of Leveling Off - slide 12

    Best Practice #5: Integrate information protection practices into businesses processes.

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