A Lost Laptop Can Cost Business About $50,000

An independent study on notebook security, commissioned by Intel Corporation, analyzes the potential business costs of stolen or lost notebook computers, suggesting that in an era where "the office" can be almost anywhere, good security precautions are essential.

The study, which was conducted by the Ponemon Institute, calculated that notebooks lost or stolen in airports, taxis and hotels around the world cost their corporate owners an average of $49,246, reflecting the value of the enclosed data above the cost of the PC.

Intel undertook the study to better understand the problems and solutions associated with lost notebooks. The study reveals that sensitive data, not the notebook itself, is the primary factor driving costs upward. The study also suggests that use of products and technologies for encrypting data reduces the financial consequences.

Analyzing 138 instances of lost and stolen notebooks, the study based the $49,246 price tag on costs associated with replacement, detection, forensics, data breach, lost intellectual property, lost productivity, and legal, consulting and regulatory expenses. Data breach alone represents 80 percent of the cost.

The study also shows that how quickly a company learns of the missing notebook plays heavily in the eventual cost. The average cost if the notebook is discovered missing the same day is $8,950, according to the study. After more than one week, this figure can reach as high as $115,849.

Who owns a missing notebook also plays an important role in the cost. Surprisingly, it is not the CEO's computer that is the most valued, but a director or manager. A senior executive's notebook is valued at $28,449, while a director or manager's notebook is worth $60,781 and $61,040, respectively.

The study found that data encryption makes the most significant difference in the average cost: A lost notebook with an encrypted hard-disk drive is valued at $37,443, compared with $56,165 for a nonencrypted version.

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