According to IBM’s latest annual Cost of a Data Breach study, the average data breach now costs up to $3.92 million when you take into account notification costs, expenses associated with investigation, damage control, and repairs, as well as regulatory fines and lawsuits. These costs have increased by 12% over the past five years.
The long-term damage of a security incident may not be so apparent. Wall Street does not look upon them kindly and the public disclosure of a data breach can lead to the average share price of a company falling by 7.27% on disclosure, with low share value and growth underperformance a reality for years afterward.
On October 2019, California’s Governor signed 5 new amendments into the law that went into effect January 1, 2020. Businesses need to act immediately to ensure they won’t be hit with CCPA penalties. Hesitation to comply with GDPR left several companies with huge fines. CCPA has steep fines of its own.
For example, Facebook’s Cambridge scandal. If Facebook had violated CCPA, it would’ve faced up to $61.6 billion in fines if the violation had been considered unintentional. It would’ve faced up to an $184.7 billion fine if the fines were considered intentional, Facebook makes $55.8 billion a year.