With cyber-security attacks becoming everyday news, companies are waking up to the need to identify and mitigate their risks of becoming the next Target. Or Home Depot. Or J.P. Morgan. The list is endless.
Target has said its 2013 security breach led to direct costs of $148 million. An attack on TJX Cos. in 2007 led to an even bigger $1.24 billion price tag for indirect costs, such as internal investigations, public relations, and other related costs, according to Jodie Kelley, general counsel of the Business Software Alliance—“and all of this is typically followed by possibly lawsuits,” she adds. From malware associated with pirated software alone, companies can expect to spend a total of $491 billion in 2014 to address fallout from hacking, Kelley said at last month’s Compliance Week West conference.
