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Breach Costs

Breaches have wide-reaching, disruptive, and costly impacts:

  • Lost business opportunity, including customer churn and higher acquisition losses

  • Fines and penalties, including restitution costs if customers are harmed

  • Lawsuits, including class-action law suits if customers are harmed

  • Direct operational costs, including legal, notifications, credit monitoring, consultants, call center, forensics, system repair, marketing, public relations

  • Lost productivity dealing with customer concerns, the press and legal responsibilities

  • Increased regulatory oversight and costs, including regular independent audits

  • Officer personal liability

  • Stock devaluation

The biggest surprise realized by CEOs after a breach is the lengthy adverse impact on key executive productivity, dealing with the media, customers and other stakeholders in crisis management mode to restore company reputation and customer trust.


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