We have all heard of data breaches at one time or another but if you run a business, are you aware of exactly what this could mean for your company? It’s no secret that there are multiple costs associated with a data compromise, but many people aren’t aware of what this hard number might be. It’s easy to figure out the cost of an emergency IT service to stop the breach and eradicate the infection, but what about costs that are harder to calculate such as a damaged reputation and fearful customers? To calculate the potential costs of a data breach, researchers at IBM and the Ponemon Institute gathered information from executives at 524 organizations around the world.
In order to find their answer, the researchers considered the following costs associated with a data breach including:
-the costs involved in detecting the breach including forensics and investigations
-business lost from system downtime and disruption
-costs related to providing help to customers including credit monitoring and ID protection for victims
The analysis showed that the average breach globally would cost about $3.86 million while it was nearly double at $8.6 million for U.S. companies. This begs the question, “What can companies do to prevent this from happening?”
The main reason companies are at risk is due to a lack of security automation and incident response mechanisms. If your company doesn’t have a strong anti-malware protection program, you are more likely to fall victim to a data breach. This could have long-term consequences that could significantly impact your bottom line far beyond the initial breach. Long-term reputational costs could end up being far more than the costs associated with getting your business back on track because it could result in the loss of customers who never return.
Companies can mitigate data breach costs by implementing a more complex security system that prevents malware and infection. In addition, organizations can mitigate costs by having a response plan in place and regularly testing this plan through employee training. Businesses that are investing in more advanced security technologies and are practicing preparedness will experience significantly lower costs associated with a data breach. Data breaches are a real threat to businesses and they can have a significant financial impact. Business owners should be protected from these extravagant costs by taking a proactive approach to monitor and protect their business from ransomware, hackers, and other threats.
Your business is important and that’s why it’s recommended to work with a trusted cyber security partner like Contextual Security. We offer a personal, customized plan to help your business navigate cyber threats and we are committed to helping you develop a plan that fits your needs and budget. To learn more about our services, check us out at contextualsecurity.com or call and speak with one of our knowledgeable representatives 844-526-6732. You can also email us with any questions at [email protected]