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Almost Half of Disclosed Breaches Do Not Include Number of Records Compromised, Finds Perimeter E-Security's Annual Data Breach Study

"While 2009 had the fewest number of data breach incidents reported in the last four years, there was a dramatic increase in the average number of records lost in each incident and a rise in the costs associated with a breach," said Kevin Prince, Chief Technology Officer, Perimeter E-Security. "The most disturbing trend is that almost half of publicly disclosed data breaches do not include the total number of records compromised."

Data breaches hit many organizations hard, exposing personal information that thieves could leverage to steal identities. These incidents result in both financial loss for the victims and major repercussions for the breached organizations, including an average cost of $204 per compromised record and a loss of the valued trust of their customers. The average total cost of a data breach rose to $6.75 million.

Amongst the key study findings:

    --  2009 had the fewest number of data breach incidents reported in the last
        four years.
    --  Nearly 40 percent of publicly disclosed data breaches in 2009 did not
        include the number of records compromised.
    --  Stolen laptops remain the number one cause of a data breach incident in
        2009.
    --  Improper disposal of documents that lead to a data breach rose a sharp
        130 percent over 2008.
    --  Third parties caused 12 percent of data breach incidents in 2009.

"Private or sensitive records that fall into the wrong hands lead to identity theft or fraud of various kinds, and results in significant costs to the organization. Beyond fines, it's about loss of brand reputation, customers and future revenues," added Kevin Prince.

The data breaches noted in the study include only those reported in the U.S. and showcase incidents that exposed personal information useful to identity thieves such as Social Security numbers, account numbers, and driver's license numbers. Additionally, some breaches that did not expose such sensitive information were included to underscore the variety and frequency of data breaches.

The study also focused on several verticals, including finance, retail, healthcare, government and education, which are more prone to identity theft and fraud as a result of the industry and the types of information they deal with.

The full results of the study are analyzed in a new whitepaper available for download on Perimeter E-Security's website: http://www.perimeterusa.com/knowledge-center/whitepapers

Kevin Prince, Chief Technology Officer at Perimeter E-Security will highlight the compelling findings of this study and offer recommendations for organizations on how to reduce exposure to a data breach in 2010 and beyond in a one-hour educational webinar on Thursday, April 15, 2010 at 11 am PT / 2 pm ET. Register on Perimeter E-Security's website: http://www.perimeterusa.com/knowledge-center/webinars/upcoming#121

About Perimeter

Perimeter is the trusted market leader of information security services that delivers enterprise-class protection and compliance. Through its cost-effective and scalable SaaS platform, Perimeter offers the most comprehensive compliance, security and messaging services that include: hosted email, encrypted email, firewall management and monitoring, vulnerability scanning, host intrusion and prevention, email antivirus and spam, remote data backup and email archiving. For more information about Perimeter visit www.perimeterusa.com.

    For additional information contact:
    Maggie Duquin / Sharon Oh
    Brainerd Communicators
    212-986-6667
    duquin@braincomm.com / oh@braincomm.com

SOURCE Perimeter E-Security