1. Forensic Costs– These are the costs incurred to accountants, computer technicians and attorneys for identifying the extent of the problem, specific clients affected and a strategy for notification. These costs can easily run in the $100,000 range for even a small breach.
2. Notification Costs– These are the costs associated with notifying all parties affected by a security breach. Costs for notification can cost anywhere from $3.00 to $9.00 a record or more.
3. Credit Monitoring– Most states require that if readily identifiable private information such as social security numbers, birthdates or other similar information is disclosed that such parties have to be offered credit monitoring services for up to one year. The cost of this can cost from $9.00 to $25.00 per record.
4. Marketing costs – A data breach can harm the reputation of a company and cause irreparable harm. Companies may have to incur costs to repair the image of a company and avoid a mass exodus of clients. Depending upon the size of the company, this can cost from as little as $25,000 to millions.
5. Data recovery– A breach can be caused accidentally by disclosing information or as a result of a malicious attack. Companies incur costs to rebuild data and restore systems to their pre breach status.