According to the NetDiligence® Data Breach Cost Calculator the estimated costs for this event for the retailer could be:

Incident Investigation Costs:

$158,000

Customer Notification and Crisis Management Costs:

$920,000

Class Action Lawsuit Costs:

$689,000

PCI Related Costs:

$783,000

Total Costs:

$2,550,000

According to the Ponemon 2015 Cost of Data Breach Study, an average event of this type could drive the average costs up to $5,920,000 for a business.

Lost Business Costs:

$3,720,000

Post Breach Costs:

$1,640,000

Notification Costs:

$560,000

Risk Management Tips:

Maintain and frequently review compliance obligations under the Payment Card Industry (PCI) Agreement.
Consider implementing end-to-end encryption of credit card transactions.
Employ a chief information security officer (CISO) to develop and implement your business-wide data privacy procedures.

Editor's Note: The NetDiligence® Data Breach Cost Calculator and other tools are available to insurers on the Travelers' eRisk Hub®. eRisk Hub is a registered trademark of NetDiligence.

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