The Cost of Data Breaches
Have you ever questioned the big dollars reported for the cost of a data breach?
One major part of that expense is the cost of hiring experts to conduct a forensic audit to determine how an organisation was infiltrated. Audits can cost anywhere from $10k to well over $100k, depending on the size of the business.
In addition, in cases where customer data is leaked, a firm can be fined tens of thousands of dollars for the breach.
Then there’s the time factor, and we all know time = money; businesses will be forced to conduct thorough investigations to determine how many aspects of the company were threatened by the attack, and interview every staff member who may have been impacted. Each individual who may be at risk must be contacted, and that list may be extensive should the business maintain a customer database. If the breach is particularly malicious, a business may be forced to shut down altogether until the problem is resolved.
Often, the biggest cost is reputation. Deloitte estimates that up to 90% of the total cost of a cyberattack occurs ‘beneath the surface.‘ Such hidden costs can affect a business years after a breach. Adverse business impact can include loss of trust, diminished brand reputation, and increased costs concerning debt financing and higher insurance premiums.
The above does not include the cost of paying the ransom demanded by cybercriminals to release data. Although the advice is never to pay ransom, many businesses feel compelled to do so in order to reduce long term harm.
In most if not all cases, an organisation can reduce costs simply by having a plan.
Prevention is always better than cure!
The best way to protect your business is to be prepared. Consult with a cybersecurity expert - start planning now. Plan and budget to improve your cybersecurity, and for what to do should you be infiltrated.
The good news is that it’s not prohibitive to put simple steps in place to greatly reduce the chance of a data breach. Check off the below and if any area is not covered off already, take steps to do so - soon…
Enable MFA (multi-factor authentication) for all staff accounts
Require long, varied login passwords
If possible, utilise an SSO (single sign-on) solution
Invest in regular employee cybersecurity training sessions
Ensure you have a reputed, up to date anti-virus package for all endpoints (PCs, laptops etc)
Set appropriate permissions to limit employee access to sensitive data
Have a DR (disaster recovery) plan: prepare for the worst-case scenario
Contact Cyberlorian if you think you’ve been hacked or want to start a conversation about improving your cybersecurity.
Raph Tripp has worked in a variety of roles including IT management, Operations, project management, PMO and as both systems and business analyst. Since 2000 he has worked in a range of industries including gaming, hospitality, managed services, NFP and education.
