U.S. Cost of Data Breach Highest In The World

A Ponemon Institute study examined breach costs in the United States, the United Kingdom, Germany, France, and Australia. Among the findings; data breaches in the United States could cost companies twice as much as they do countries with less stringent disclosure and notification laws. For example in the US, the cost per lost record was 43 percent higher than the global average.

In July of 2009, equivalent laws were passed Germany and costs were the second highest at 25 percent above the worldwide average. Australia, France, and the U.K., where data breach notification laws have yet to be introduced, all had costs below the world average. The study sited that one major reason for the high cost "is that U.S. companies are required to notify customers of their breaches, even if they only suspect that the customers'records might be affected."

Loretta Hunnicutt