The high price of ID theft

Share this content:

Data breach events have signicantly increased the cost of doing business.

Since February 15, 2005, Privacy Rights Clearinghouse, a San Diego-based nonprofit organization, has tracked the data breaches of more than 650 companies and organizations totaling 158 million records. The breached data includes the employee and customer information that has been lost or stolen from financially strong and technology-driven companies, universities and organizations.

A study, released by the Ponemon Institute in October 2006, found that the total cost of a data breach averaged $182 per lost customer record. It divided the costs into three groups: direct incremental costs, which averaged $54 per lost record including discounts; notification letters, legal fees, lost productivity costs, which averaged $30 per lost record including lost time of employees; and customer opportunity costs, which averaged $98 per lost record including cost of lost customers and cost of acquiring new customers.

According to Bryan Thornton, managing director of Net Reaction, an information security consulting firm, companies should be prepared to review and implement a comprehensive Information Security Readiness Plan to protect sensitive data.

Some companies offer an identity-theft managed recovery benefit as an employee, customer or member benefit to mitigate risk. Managed recovery means that a professionally trained and Fair Credit Reporting Act (FCRA) certified recovery advocate will handle an identity theft victim's case until said victim is returned to pre-identity theft event status.

close

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here