U.S.-based companies spend more time and money resolving high-profile customer data breaches than their counterparts around the globe, according to the latest survey conducted by independent security researcher The Ponemon Institute and security software vendor PGP Corp.
The reason is simple: unlike many foreign countries, U.S. companies are required to immediately notify consumers when a breach occurs and take immediate steps to both compensate victims and safeguard their networks from future attacks.
With the average data breach incident costing U.S. companies almost $7 million, enterprise customers are finally realizing that it’s more important to invest the time and money on quality security technology and procedures upfront rather than lose millions in fine and attorney fees—to say nothing of customers—after a data breach becomes public.
eSecurity Planet delves into the regulations and costs that may put American companies at a disadvantage, but ensures that customers are protected as much as possible from either accidental or deliberate exposure of their personal information.
It cost U.S. companies more than twice as much to deal with and resolve a data breach than their counterparts in England, according to the a global survey of more than 133 companies and organizations in five countries by the Ponemon Institute and PGP Corp.
According to the study, the average data breach cost in 2009 cost U.S. companies about $204 per record compromised, compared to just $98 per record in the United Kingdom.
The disparity in costs directly correlates to the amount of regulation companies encounter in each country and, therefore, the amount of money each organization has to shell out in attorney fees and fines imposed by state laws.