Data Breach Cost Calculator
What's in the calculation?
- Digital forensics to determine scope of breach (mandatory for certain industries): Accounts for 14% of final breach costs according to 2015 Ponemon Study.
- Cybersecurity consulting company to secure your systems to put customers minds at ease and ensure it doesn't happen again: Average between $4,400 - $19, 400 (See Cost of Ariento).
- Annual credit monitoring for affected customers (required in California): $120 - $250 per customer annually (See Experian & TransUnion)
- Lost productivity due to stress and time committed to dealing with breach (not included in above calculation)
- Optional (not included in above calculation) - PR Firm to handle public communication
- Optional (not included in above calculation) - Legal Counsel, especially if >500 records to help with notifying the state of CA and in case of a lawsuit
* % of customers affected by data breach is often often close to 100% for small businesses as many lack the necessary processes & technology to promptly identify a data breach, making it difficult to determine the exact scope of a data breach, and resulting in the assumed compromise and notification of their entire customer list.
**There isn't any recent data, but in 2008, 31% of affected customers terminate customer relationship according to the Consumer’s Report Card on Data Breach Notification study conducted by the Ponemon Institute.
***There isn't exact data, however a conservative estimate is double the % of affected customers that terminate their existing relationship with the company (31%, see above stat). The bad press coupled with the time and resources consumed after a data breach make it an unlikely period to acquire a significant amount of new customers.
****Calculation is only for first year after data breach only. Some expenses will likely be incurred after the first year, but are not included in the calculation above.
Disclaimer: The above calculation is an estimation only and should not be used for any other purpose.