If your company suffers a data attack, how much time will it take for you to recover? Do you think you’ll ever return to your pre-breach status quo?
If you put the proper security in place, how much money will you save compared to risking an attack by not updating your security technology because “it’s too big of an investment”?
Sadly, many executives believe that a breach won’t happen to them because they’re too small of a fish, or not in a desirable industry. Those two justifications do not play out in the hard data. The 2018 study cited below reports over half of breaches reported are caused by human error (27%) or a system glitch (25%). The remaining 48% were victims of malicious or criminal attacks.
What is the cost of a data breach?
Sponsored by IBM Security and conducted by Ponemon Institute LLC, the 2018 Cost of a Data Breach Study found that the average cost of a data breach globally is $3.86 million, a 6.4% increase from the 2017 report.
The following factors affect the cost of a data breach:
1. The unexpected loss of customers following a data breach
2. The size of the breach or the number of records lost or stolen
3. The time it takes to identify and contain a data breach
4. Effective management of post data breach costs
The Ponemon study also calculated the costs associated with “mega breaches” ranging from 1 million to 50 million records lost, projecting that these breaches cost companies between $40 million and $350 million respectively!
Security automation impacts costs
Ponemon researchers also found a relationship between data breach cost and the state of automation companies used in identification and containment of cyber exploits or breaches. Technologies considered in the state of automation include: artificial intelligence, machine learning, analytics, and orchestration.
Results show the average total cost of a data breach is $2.88 million for organizations that fully deploy security automation. In contrast, organizations that do not deploy automation realize a much higher total cost of a data breach at $4.43 million.
Data breach frequency by industry
Of the 477 companies that were interviewed after a breach, here are the top industries represented in the Ponemon study.
#1: Financial Services, #2: Services, #3: Industrial Manufacturing, #4: Technology, #5: Retail, #6: Public Sector, #7: Consumer, #8: Transportation, #9: Communications, #10: Energy.
Here are the efforts that will suck your time
The hidden costs in data breaches are expensive and difficult to manage.
Factors such as lost business, negative impact on reputation and employee time spent on recovery are not often monetized in reported data. For example, the Ponemon study found that 1/3 of the cost of mega breaches (any breach with over 1 million lost records) were derived from lost business.
Cybercrime continues to grow rapidly around the world, with annual costs to the global economy estimated to reach over US$2 trillion by 2019. It’s critically important for large and small business management teams to tackle complex cybersecurity issues. As the world is increasingly dependent on digital technology, it forces supply chains to become more interconnected and also increases the risk of cyber attack.
For a more detailed analysis of risks for small businesses, dive deep into the BBB’s report: The State of Cybersecurity Among Small Businesses in North America. The report hopes to advance conversation around cybersecurity effectiveness; dispel common misperceptions; show that cybersecurity could eventually become a driver for consumers’ purchasing decisions; and inform cybersecurity policy, research, and education and awareness efforts.
Want more? Cyber Solutions Technology can help your business with mobile cybersecurity. Contact us today for an expert consultation.