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

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