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What’s the Cost of a Data Breach?

June 12, 2018

Ticketfly will become the latest company to find out firsthand the cost of a data breach. Last week, Ticketfly’s service was taken down by hackers, and reportedly, the details of 26 million people were stolen.

Whats the Cost of a Data Breach

Immediate cost of a data breach?

The immediate cost of a data breach was obvious for Ticketfly and its partners. The concert and sporting event ticket website could no longer carry out its business while down. Customers were unable to purchase tickets, and those who already had might have had trouble downloading or printing their tickets.

The effect could be felt for those putting on upcoming events while the system was down. The backend of Ticketfly came back online early last week but getting the customer facing service back online took longer.

Eventbrite, the California based company that owns Ticketfly said:

“some customer information has been compromised as part of the incident, including names, addresses, emails, and phone numbers of Ticketfly fans. We understand the importance our customers place on the privacy and security of their data and we deeply regret any unauthorized access to it.”

At this time, Eventbrite could not confirm or deny the claims that the number of people affected was as many as 26 million. While the site has been down, the company would have had to spend much resources and time solving the issue, while missing out on revenue. The cost of a data breach can be hard and immediate.

Long-term cost of a data breach

It’s those people affected who are at most risk to the long-term cost of a data breach however. With the information stolen, hackers could create effective identity theft and fraud attacks. It was both customers and employees of the company whose data was stolen according to some sources.

It’s really important organizations have strong ways of protecting their customers valuable personal information. When they don’t succeed, they put their customers in danger, and they potential damage their relationships with those customers.

The longer-term damage to Ticketfly could be more than financial, but reputational as well. However, it has moved fast to investigate and correct the issue, and seemingly, no financial information has been compromised.

We’ve seen in the past though, the cost of a data breach can be massive and long-term, spanning years. Hopefully Ticketfly can get back on course quickly and the authorities can catch those responsible.