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Are You Underestimating the Cost of a Data Breach?

cost of a data breach

 

Small and medium-sized businesses are often under the misconception that they are "too small" or they don’t have anything valuable enough to make them be a target for cyber crime. They sometimes also feel that if a data breach were to occur, it would have a minor impact on the health of their business.

In fact, that is exactly what the cyber criminals want you to think.

Unfortunately, as recent headline and studies show, they are wrong on both accounts. Jody Westby, CEO of Global Cyber Risk, said, “it is the data that makes a business attractive, not the size – especially if it is delicious data, such as lots of customer contact info, credit card data, health data or valuable intellectual property.” And CSO magazine wrote “Small and mid-sized businesses are now the preferred targets for cyber criminals, not because they are lucrative prizes individually but because automation makes it easy to attack them by the thousands, and far too many of them are easy targets."

Former FBI Director James Comey said, “There are two kinds of companies in the United States. There are those who’ve been hacked ... and those who don’t know they’ve been hacked.” 

As a leading cyber security company in Cincinnati, we are constantly researching the current state of the industry and the current state-of-the-art technologies, processes, policies and people. We like to share timely and relevant articles we find that will help you understand the current but ever shifting cyber threat landscape and help you defend yourself, your family and your organization.

The Real Cost of a Data Breach

As you may know, it’s getting easier and less expensive for cyber criminals to perpetrate attacks.

A recent study by Deloitte estimated that readily available cyber crime tools costing $34 per month could return $25,000. While more expensive but sophisticated tools that cost a few thousand dollars could return as much as $1 million per month.

It’s easy to see that a data breach can be devastating to the business, its customers, its vendors and the community. Studies are showing that the cost of a data breach may be much higher than originally believed:

  • The Small Business Administration estimated that there were over 42,000 cyber security incidents last year
  • 43 percent of those incidents were targeted at small businesses
  • It has been found that the average cost of a data breach to a small business is $149,000 not including the damage to the brand reputation
  • IBM’s latest Cost of a Data Breach report found that the average cost to a business per record lost is $233, and those costs can skyrocket in tightly-regulated industries.

Recently, LibertyID reviewed a study performed by Logically, and offered business owners' thoughts after being shown the statistics on how much a data breach will truly cost a business.

Read the Article on LibertyID

Here is a link to the article on LibertyID: Businesses are Underestimating the Costs of a Data Breach

If you have questions after reading the article, please contact us and one of our experts will be happy to help you.  Additionally, follow us on LinkedIn, Facebook and Twitter where we are constantly sharing important cyber security and technology information that will help you stay safe out there.

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