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Average Cost Of A Data Breach For UK Firms £1.9m

The average cost of a data breach in the UK has risen to £1.9 million in 2010, with system failures being responsible for most of the breaches.

The average cost incurred by a data breach rose by 13 per cent compared with 2009 to £1.9 million, with the highest loss incurred by a UK company being £6.2 million, a rise of £2.3 million from the previous year. Incidents involved between 6,900 and 72,000 records.

According to a survey conducted by the Ponemon Institute on behalf of security software maker Symantec, system failures accounted for 37 per cent of all data breaches in 2010 followed by loss by negligence which dropped 11 points to 34 per cent.

Data loss by malicious or criminal attacks rose by five percentage points to 29 per cent of all data breaches.

Robert Mol, Symantec's director of product marketing for the EMEA region, said that the rise in cost of data breach was due to the increase in malicious and criminal attacks against UK companies.

“The fact that organised crime is now adopting a very sophisticated methodology to penetrate systems and look for confidential information that they can sell for an economic benefit, is really influencing the cost of the breach,” he said in a statement to IT Pro.