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|
|*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.
|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