Data breaches are more costly than ever

Organizations that experienced a data breach in 2008 paid an average of $6.6 million to rebuild their brand image and retain customers, according to a new study. Ponemon Institute, a research firm, looked at 43 organizations that reported a data breach in 2007 and found that roughly $202 was spent on each consumer record compromised. Following a data breach disclosure, customers who leave one brand for another, known as customer churn, was highest among healthcare and financial services companies, according to the survey.