Data Loss and the Financial Impact of It

Companies have always focused on protecting their31 percent had a worm or virus incident, 28 percent
data from outside threats. They have focused onexperienced insider fraud, and 18 percent of the
everything from intrusion protection systems tocompanies experienced data leakage. The FBI has
vulnerability management. However, it is now time forestimated that the total amount of data loss in 2006
companies to focus on data loss from another angle :has cost companies a total of $62.7 billion. Experts
data loss from the inside.have furthered estimated that for a major company
The Internet has created a hole in the securityor corporation, one leakage will cost approximately
system and has provided a way for businesses and$4.8 million.
individuals to communicate with each other freely.There have been a number of high-profile incidents
Electronic communications can now go outside theof data loss. Some examples are, when AOL posted
company almost completely unmonitored throughinformation about its members in the search engine, a
emails, instant messaging, file transfers, or links onDuPont employee leaked $400 million worth of
websites. This free flow of information makes it veryintellectual property, and a Ceridian employee
easy for important data to fall into the wrong hands.accidentally posted the bank account information of
The loss of data can happen either accidentally or150 clients.
deliberately and can include a number of differentData loss has the potential to compromise intellectual
leaks of information ranging from the exposure of aproperty and cause a company to violate their
customer's confidential information to thousands of aregulations. In fact, it is likely to be a threat to
company's files being sent to their competitor.everything that a company has built. Companies
Regardless of the importance of it, data loss occurscannot afford to ignore the serious threat that is
any time employees, consultants, or other insidersposed by a loss of confidential information. In order
release information that is supposed to be keptfor a company to protect the investment that it has
confidential.placed in its brand, products, partnerships, and
According to a 2006 survey, approximately 49employees, they must address the issue of data loss
percent of companies had experienced an internaland take proper precautions.
security breach in the prior year. Of those companies,