How Consumers Foot The Bill For Data Breaches

1011 0100101 101 01 10 01 n m 0100101110: 010010111010 HOW CONSUMERS FOOT THE 111 O BILL FOR DATA BREACHES BILL 010 1011010011 o1o10011ioo100 hio 10110 11101101001111101101001111101 111 11 The fallout from the data breach at TARGET shows how expensive the attacks can be $15.9 $2.2 BILLION MILLION in possible fraudulent charges on stolen cards in severance for their CEO, who resigned following the breach $443 $1.1 MILLION BILLION in possible fines Target's 40% fall in profits following the breach BUT WHAT ABOUT AN "AVERAGE" DATA BREACH? Total Average Cost of a Data Breach In 2013, there were 617 recorded data breaches, not including the Target breach Average cost of notification per $5 customer Average cost of card cancellation and credit monitoring per customer $30 Hourly forensic examination $2,000 Average legal defense $500,000 Average legal settlement $1,000,000 Maximum fines $1,000,000 Total: $5,403,644 $5,403,644 SOCIAL SECURITY XXXXXXXX DRIVER'S LICENSE Average organizational cost of a breach •$188 28,765 Number of records compromised in an average data breach Average cost per compromised record SO HOW DO I END UP WITH THE BILL? CARD PROVIDERS RETAILERS XXXX XXXX XXXX XXXX • Retailers pass these costs on through higher prices. Credit providers and banks have to roll back fraudulent charges made on stolen cards. • Where retailers are on the hook for fraudulent online orders, their insurance pays the bill. They also have to reissue cards for anyone who might be affected. Each card costs $10 or more. • This drives up costs for all policy holders, which is passed on to shoppers through higher prices. These costs are passed on to consumers through higher interest rates and credit card fees, up to a 5-7% increase in some cases. SO WHAT'S THE TOTAL DAMAGE? 1001111101101001111 AL. 10111010010010111010010CUnda 00 $140 BILLION 011 .010011111011010011111011010011 0101110100100101110100100101110 J10010 !0100111110110100111110110100111110110 010011111011010011111011010011111011 10111010010010111010 01001011101001001 11010. in direct costs like those passed on to the consumer, and indirect costs, like higher taxes to pay for law enforcement 01111101101001111101101001111101" 10010010111010 01001011101007 '010011111011010011111 *10100 101 117 01 "01 500,000 LOST JOBS, particularly in high-end manufacturing AND IS THERE ANYTHING ELSE TO WORRY ABOUT? Data breaches contribute to over half of all cases of identity theft 101001 11111 10100 '111 1111101 66% of identify theft victims suffer a financial loss $9,650 is the average financial loss for an identity theft victim ONLY 14% of identify theft victims have to pay these costs out of pocket, and most of those pay less than $100 BUT 10% of identify theft victims have to spend over a month resolving financial and credit problems Presented by QAUTHENTIFY' Sources: washingtonpost.com/business/economy/data-breach-hits-targets-profits-but-thats-only-the-tip-of-the-iceberg/2014/ 02/26/159f6846-9d60-11e3-9ba6-800d1192d08b_story.html nytimes.com/2014/02/27/business/target-reports-on-fourth-quarter-earnings.html?_r=1 symantec.com/mktginfo/whitepaper/053013_GL_NA_WP_Ponemon-2013-Cost-of-a-Data-Breach-Report_daiNA_cta 72382.pdf usatoday.com/story/money/personalfinance/2013/04/14/identity-theft-growing/2082179/ dailyfinance.com/2013/12/31/scariest-identity-theft-statistics/ articles.latimes.com/2013/jul/22/business/la-fi-tn-cybercrime-140-billion-dollars-economy-20130722 idtheftcenter.org/ITRC-Surveys-Studies/2013-data-breaches.html © 2014 Authentify, Inc.