How Consumers Foot the Bill For Data Breaches

The cost to retailers like Target is high, but consumers still are left holding the bag in the end. Here”s how consumers foot the bill for data breaches. Infographic, analysis.

aNewDomain.net — The data security breaches over the last year struck companies and customers alike, but as usual the consumer gets hit the hardest.  Here’s how consumers foot the bill for data breaches so far in 2014.

What with the US Department of Homeland Security’s warning about Backoff, new point of sale malware that infiltrates retail computer systems, data breaches are top of mind. And they’re expensive. The average cost of a data breach is 5.4 million dollars. More than 66 percent of identity theft victims suffer financial loss as a result of breaches like what Target endured this year.
Update- 1.2 billion internet Passwords hacked by Russian Gang.
“A Russian crime ring has amassed the largest known collection of stolen Internet credentials, including 1.2 billion username and password combinations and more than 500 million email addresses, security researchers say….Hold Security would not name the victims, citing nondisclosure agreements and a reluctance to name companies whose sites remained vulnerable. At the request of The New York Times, a security expert not affiliated with Hold Security analyzed the database of stolen credentials and confirmed it was authentic. Another computer crime expert who had reviewed the data, but was not allowed to discuss it publicly, said some big companies were aware that their records were among the stolen information”. for more go to http://www.nytimes.com/2014/08/06/technology/russian-gang-said-to-amass-more-than-a-billion-stolen-internet-credentials.html?_r=0

Check out the infographic below the fold. It paints a startling picture of how consumers foot the bill for data breaches.

Target’s post breach numbers

After its data breach, according to a tally published by The Washington Post, Target has spent more than $60 million in legal fees, software updates, credit monitoring and customer reimbursements. Target is now facing upwards of 140 lawsuits and its CEO, Gregg Steinhafel, has since resigned over what the market perceived as Target’s major security failure.

Not only are Target’s profits way, way down, but pundits now are publicly wondering whether Target and other major companies suffering data breaches can ever restore consumer trust. Target and other firms will end up paying — class action lawsuits claiming the retailer didn’t adequately protect consumer data are looming. But consumers still are left holding the bag at the end.

Authentify infographic _target data breaches
Infographic: How Consumers Foot the Bill for Data Breaches, by Authentify.com

For aNewDomain, I’m David Michaelis.

Based in Australia, David Michaelis is a world-renowned international journalist and founder of Link Tv. At aNewDomain.net, he covers the global beat, focusing on politics and other international topics of note for our readers in a variety of forums. Email him at DavidMc@aNewDomain.net.

About the author

David Michaelis

Based in Australia, David Michaelis is a world-renowned international journalist and founder of Link Tv. Winner of Peabody award. At aNewDomain, he covers the global beat, focusing on politics and other international topics of note for our readers in a variety of forums. Email him at DavidMc@aNewDomain.net.

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