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October 3, 2017

The Cost of Cyber Attacks on Businesses

Can your business afford a cyber attack? Whether you own a small business or a large one, a security breach is going to cost you. In fact, data shows that small and medium-sized businesses are more at risk today than ever when it comes to data theft. Large corporations are no different—the cost of cyber attacks soar even higher for businesses that are bigger.

The cost of cyber attacks is higher than you think.

How Much Does a Cyber Attack Cost Small Businesses?

A single cyber attack could directly impact your business’ budget—the average dollar amount is $38,000 per attack and the cost of cyber attacks could soar to $55,000 and above. Keep in mind that this doesn’t include the indirect costs you may experience. Does your business have that kind of disposable income?

These numbers come from the time in productivity that a security breach will cost your company in addition to the the services you’ll need to try and fix the security breach. These professional services could range from IT consultants to lawyers and public relations officials. The cost of cyber attacks includes the time and resources you’ll spend trying to deal with such an attack—all of which impact the success of your business.

Bigger Businesses and Cyber Attacks Cost

If you own a large business, security breaches and the cost of cyber attacks become even more of a concern for you. Although large corporations are often the ones you hear about in the news regarding cyber attacks, the truth is that the majority of cyber attack victims are small and medium-sized businesses. However, the cost of cyber attacks for large businesses is far greater.

Large businesses can expect to pay nearly 15 times more than small businesses when it comes to the cost of cyber attacks. This means that even on the lower end of $38,000 for small businesses, large businesses can expect to pay $570,000 and even more. On average, a large business will pay $824,750 for cyber attacks and this number could go as high as $2 million.

Increasing Costs and What They Mean for You

The cost of cyber attacks are increasing for businesses. Since 2013, the cost of data breaches on businesses has risen by 23% and this number is rising. An IBM study of 12 countries in 2015 showed an increase from $3.52 million to $3.79 million for large businesses.

This leaves the average cost per record—which consists of a person’s name and identifying information which could include financial records, emails and passwords, and even medical or government records—at $154, with the prices varying by country. The United States took the highest cost at $217 per record. Average cost of cyber attacks per organization in the U.S: $6.5 million.

While these numbers will vary according to the industry and size of your business, the cost of cyber attacks is likely something your business can’t afford. In particular, small and medium-sized businesses are hugely impacted by the cost of cyber attacks and some go bankrupt over the costs.

What Can You Do To Protect Your Business?

Preventing security breaches is the best and most effective way to save your business from the cost of cyber attacks. A proficient and experienced IT consulting company can help your business to remain as secure as possible and implement proactive solutions that deal with security problems as they happen and before they lead to costly cyber attacks on your business.

The cost of cyber attacks is far greater than the cost of keeping your IT systems updated and secure with a knowledgeable and experienced IT provider. Besides the monetary costs of a security breach, you also lose credibility and brand trust among your customers, and recovering from this often takes more time and lost business than it takes to recover from the actual data breach.

The cost of cyber attacks can be devastating to your business regardless of its size. It’s never too late to ensure your business is secure. The threat of a cyber attack isn’t a question of if, it’s when. Can you afford a cyber attack? If not, it’s time to consider what a security breach will cost you compared to the cost of having IT security for your business.

This article originally appeared on Solvere One

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