Cyber criminals topped their performance yet again with a new record high in network security and breach costs this year. Altogether, these overachievers cost U.S. and global businesses billions of dollars in 2016.
If security is not an expense you think you want to budget for, first consider the current state of affairs your business faces today. Check out these statistics from 2016, in Ponemon’s 2017 Cost of Data Breach Report:
- Cost for each lost record: Data breaches cost companies an average of $225 for each compromised record. Oh, and if you’re part of highly regulated industries like health care and financial services, your per-capita cost of breach soars to $380 and $335, per record, respectively!
- Average total cost of a breach: In 2016, hackers outdid themselves with the cost of a breach averaging $7.35 million. This is up from $5.4 million in 2013.
- How breaches happen: At a record-high of 52%, cyber criminals now claim the most responsibility for causing breaches. These malicious or criminal attacks are primarily to blame for data loss, while negligent employees and system glitches trail in at 24% each as the primary
Almost every aspect of a business can be effected by a data breach, regardless of the source of the break.
Here are some of the areas that will cost you the most:
Post-attack costs. These are help-desk fees, investigative activities, remediation, legal fees, product discounts, identity protection services and regulatory interventions. The average post-response cost in 2016 was $1.56 million, according to Ponemon’s report.
Lost business costs. Unfortunately, customers usually lose confidence in companies that experience data breaches. Especially when they were easily avoided. They simply go find a competitor who is more secure. And, if they don’t leave, your reputation still suffers. The average loss in this category for 2016 is $4.03 million.
Notification costs. Telling customers their information has been compromised cost companies $0.69 million in 2016, up from $0.59 million in 2015. These costs include creating contact databases, identifying and complying with regulatory requirements, postal expenditures and follow-up communications.
Some good news
Of course, as cyber criminals have upgraded their resources and practices, the IT industry has developed a number of preventive measures. The cost of defending your data from malware is a fraction of the staggering costs related to having a data breach.
So, while criminals are busy upping their game to swipe your data, what’s your plan for fighting back? 60% of small- and medium-sized businesses that suffer a cyber-attack close the doors within 6 months. Paying ransom is also not a good option. Not only is the cost of ransom up 266% from 2015, but paying ransom doesn’t guarantee your data gets back safely and doesn’t remove the ransomware from your networks.
A comprehensive Business Continuity Disaster Recovery (BCDR) plan is the best insurance against cyber-attacks. Just like with any other insurance, you may pay for it 364 days a year without needing it, but that one day you do need it, you’ll be glad you have it!
At Networking Results, we have a variety of backup, restore and business continuity options to keep your business safe: online or 817 575-6230.