According to a new article on TechTarget, a study by the Ponemon Institute has revealed the cost of a data breach has increased once again, to $204 per compromised record. The study is available for download at http://www.encryptionreports.com/ after giving away some personal details.

The “Fifth Annual U.S. Cost of Data Breach Study,” funded in part by encryption vendor PGP Corp., determines the annual cost of the breach by establishing a company’s cost of lost business as a result of an incident; expenses incurred by notifying individuals and authorities of a breach; costs associated with legal fees and consulting firms and new investments made in technology and employee education.

In our down economy, it is interesting that the cost of data breaches have been rising for five years running.  If I were cynical, I might suggest that one of the reasons for the constantly increasing costs in this study is the partnership with PGP, who sells products designed to protect you in the case of a lost laptop or storage device.

That said, I’m not even sure that those items above can accurately represent the cost of data breaches, especially in certain environments.  The loss or damage of reputation caused by a data breach can be so devastating that the monetary cost can’t even be calculated.  If you don’t know what I’m talking about, what is the first thing that comes to your mind when I mention Heartland Payment Systems, TJX, or the Department of Veterans Affairs?  These organizations have suffered tremendously because of wide (and widely publicized) data breaches.  Imagine the firestorm of criticism if some of the most trusted companies were to suffer data breaches along the lines of Heartland’s breach?

In addition to the loss of reputation, what are other costs of data breaches that the Ponemon study doesn’t reveal? Let us know in the comments.

As many have noticed, Apple has released their new lineup of laptops, software, OSes, and iPhones. As I watched live coverage of the keynotes on Monday (thanks Gizmodo) – a few things caught my attention when they were speaking about the new iPhone 3G S.
The first thing that caught my eye was the mention of “hardware encryption.” Now, simply mentioning that a device supports hardware encryption can mean a lot of things, and Apple isn’t very clear about what they mean by this. Trying to do some further research didn’t help much either as I only ended up being further confused with all the different mentions of this “hardware encryption.” The official word from Apple is…

iPhone 3G S offers highly secure hardware encryption that enables instantaneous remote wipe. You can even encrypt your iTunes backups.

…according to that, it would sound like the remote wipe is dependent on the hardware encryption, which makes me believe that instead of actually wiping the data (as in a format), it would simply delete the private key – therefore making the data inaccessible. (Since iTunes stores a backup of all your iPhone data at every sync, securing this also seems important.)  This also assumes it’s using a strong form of encryption. I’ve also read in other posts…

…hardware encryption for Exchange users…

…as the listed feature. Does this mean it’s only available through Exchange, and at what level is it being used? Is it only securing your email? We know the iTunes songs and videos are already being encrypted on the device. Is this the same form of encryption they’re talking about?  We’ve asked an insider at Apple to help us out with some of these questions and are still awaiting a response.

All of this brings up major questions about the REAL security behind all these marketing terms. How much do companies actually care about security, and how much do they actually do to help protect their users? Is everything just a marketing ploy these days?

Users were upset about the lack of security in our last model of product X. Let’s add minor revisions and throw some good marketing verbiage in the features list and hope that fixes everything.

Is this how security is being treated? Apple isn’t the only company being vague about these types of issues; it rolls all across the board. They just happen to be the ones asking for the most attention at his current point in time.  Stay tuned as I hope to find and relay some answers to many of these questions as more details are revealed.