How Much Does a Data Breach Cost in 2025?

Every 39 seconds, a cyberattack occurs somewhere in the world. But data breaches don't just happen through sophisticated hacking — one of the most overlooked vectors is improper IT asset disposal. That old server sitting in your storage closet? It could cost your company millions.

The Numbers: IBM's 2024 Cost of a Data Breach Report

IBM's annual report is the gold standard for breach cost analysis. The 2024 report, based on 604 organizations across 17 industries, reveals a sobering picture:

• $4.88 million — global average cost of a data breach (up 10% from 2023)
• $165 — average cost per compromised record
• 292 days — average time to identify and contain a breach
• $4.99 million — average cost in the United States (highest globally)

Breach Costs by Industry

Not all industries face equal risk. Some sectors handle more sensitive data, face stricter regulations, and suffer greater consequences:

Source: IBM Security — Cost of a Data Breach Report 2024

The Forgotten Attack Vector: Improper IT Disposal

When most people think about data breaches, they picture hackers breaking through firewalls. But a significant percentage of breaches come from a much simpler source: old hardware that wasn't properly wiped.

A landmark study by Blancco Technology Group found that 42% of used hard drives purchased online contained recoverable personal and corporate data. That includes:

• Social Security numbers and financial records
• Patient health information (PHI)
• Corporate emails and trade secrets
• Customer databases with thousands of records
• Login credentials and access tokens

Simply deleting files or formatting a drive is not enough. Standard deletion only removes the file system pointers — the actual data remains on the disk and can be recovered with freely available tools.

Real-World Examples

The consequences of improper IT disposal are not theoretical:

• Morgan Stanley (2020) — Fined $60 million by the OCC for failing to properly decommission data center equipment. Unencrypted customer data was found on devices that were supposed to be destroyed.
• Advocate Medical Group (2013) — Settled for $5.55 million after unencrypted laptops containing 4 million patient records were stolen.
• UK NHS (2011) — Hard drives containing patient data from a decommissioned server were sold on eBay. The trust was fined £325,000.

The Hidden Costs Beyond the Headline Number

IBM's $4.88M average includes direct costs, but the real impact extends much further:

• Regulatory fines: HIPAA penalties range from $100 to $50,000 per violation, with annual maximums of $1.5 million per category. PCI DSS fines can reach $500,000 per incident.
• Lost business: 67% of consumers say they would stop doing business with a company that experienced a data breach.
• Legal costs: Class action lawsuits, notification costs, credit monitoring for affected individuals.
• Operational disruption: Average of 73 days of significant business disruption following a breach.
• Reputation damage: Brand value impacts that can last years.

The Solution: Certified ITAD (IT Asset Disposition)

Certified IT Asset Disposition eliminates the risk of data breaches from retired equipment. The process follows NIST 800-88 guidelines, which define three levels of data sanitization:

1. Clear — Logical overwriting techniques for reusable media
2. Purge — Physical or logical techniques making recovery infeasible with state-of-the-art lab techniques
3. Destroy — Physical destruction (shredding, incineration) rendering recovery impossible

What Certified ITAD Costs (Spoiler: It Can Be Free)

Here's the part that makes the risk calculation truly absurd: proper IT disposal doesn't have to cost you anything.

At EverTrade Electronics, we offer free pickup and certified data destruction for qualifying business lots in the Greater Houston area. That means:

• ✅ Free pickup and transport
• ✅ NIST 800-88 compliant wiping or physical destruction
• ✅ Serialized certificates of destruction for every device
• ✅ Zero landfill — all materials responsibly recycled
• ✅ Full compliance documentation for audits

When the alternative is a potential multi-million dollar breach, using certified ITAD isn't just smart — it's a no-brainer.

How to Protect Your Business Today

1. Audit your IT closet — Identify all retired or end-of-life equipment that hasn't been properly sanitized.
2. Check your compliance — Use our free compliance checker to understand your regulatory obligations.
3. Schedule certified ITAD — Book a free pickup with EverTrade Electronics. We serve the entire Greater Houston area.
4. Establish a policy — Create an IT asset disposition policy that covers the full lifecycle of every device.

Conclusion

Data breaches from improper IT disposal are entirely preventable. With certified ITAD services available at no cost, there is no financial excuse for keeping unsanitized hard drives in a storage closet. The risk is real — $4.88 million real — and the solution is free.

Don't wait for a breach to take action. Contact EverTrade Electronics today or schedule your free pickup.