Hacked! The cost of a cyber breach (Part 3) – Financial Industry
Company Profile: A Community Bank, $350 million in assets
Computer hackers commenced a distributed denial-of-service attack (DDoS) to the bank’s website as a smoke screen to hack into its network. This malicious attack shut down the bank’s online banking for three days.
According to the NetDiligence® Data Breach Cost Calculator the estimated costs for this event for the Community Bank could be:
| Incident Investigation Costs: | $192,000 |
| Customer Notification and Crisis Management Costs: | $475,000 |
| Fines & Penalties: | $132,000 |
| Total Costs:* | $799,000 |
| *Not including the loss of business income the bank suffered during the attack. | |
According to the Ponemon 2015 Cost of Data Breach Study, an average event of this type could drive the average costs up to $2,810,000 for a business.
| Detection Costs: | $610,000 |
| Notification Costs: | $560,000 |
| Post Breach Costs: | $1,640,000 |
Risk Management Tips:
- Create, implement and test a business continuity plan and disaster recovery plan.
- Implement an intrusion detection system on your network.
- Have a secondary system available for online access, and ensure this system is regularly tested for functionality.
Read part 1 of Hacked! The cost of a cyber breach – Retail Industry
Read part 2 of Hacked! The cost of a cyber breach – Healthcare Industry
by Rosalie L. Donlon, Property Casualty 360