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What is the real cost of a data breach?

data breach

One of the most common cyber threats is violations data. To protect the Companies, they need to understand exactly what it is real cost a data breach. Only then will they be able to determine how much time, attention and money must be spent to stay safe.

The cost of a data breach is not just about financial losses, but also in loss of respect and credibility of a business. A serious infringement data can be very detrimental to a company.

The financial cost of a data breach

After analyzing data breaches that occurred worldwide between April 2018 and April 2019, its researchers IBM reported that the average, total cost of a data breach for a business is $ 3,92 million. They also found that the companies on USA had the biggest losses ($ 8,19 million). To calculate the financial cost, the researchers looked at the losses incurred in four areas related to data breach:

Detection and research: Refers to any costs arising from the location and reporting of the incident security (eg control, research, etc.).

Notice: This aspect includes the financial cost of informing those affected infringement (letters, phone calls, etc.).

Tackle: The company needs to take some action to address the situation. This has to do with hiring security experts, investing in new ones systems and infrastructure, offering free services to customers affected etc.

Business losses: When a breach occurs, the operation of a company or some parts of it may be interrupted. During this time, the company loses revenue.

cost

Costs associated with loss of credibility

Financial problems may not be the most important. Companies that have fallen victim to a data breach have many more issues to deal with. One of the most important is loss of credibility. Customers can lose their trust and leave. In addition, acquiring new customers will be difficult, due to the bad reputation that will circulate for the company.

Improving a company's reputation is vital to retaining existing customers and attracting new ones. In the event of a breach, those affected should be aware that the company has taken the incident seriously and is doing all it can to guarantee protection of their sensitive information.

Destruction of relationships related to the company

It is not just customers who lose faith in a company that has been the victim of data breach. The same can happen to them employees And them Investors.

A data breach can lead to dissatisfaction or even dismissal of employees, especially if they have been personally affected data. Such an incident will cause challenge vis-.-vis the employer. Disclosure of the event may prevent new recruitment in the future.

As for investors, many will lose faith in the company. This is because a data breach shows that the business is vulnerable and unprepared for cyber attacks.

Total cost of a data breach

Given the economic consequences, the loss of credibility and the destruction of relationships, we understand that a data breach causes big problems. In particular, for small and medium enterprises, who have less profit and do not invest enough in safety, the cost can even lead to bankruptcy. Unfortunately, cybercriminals are well aware of this and often target small businesses.

The actual cost of a data breach will depend entirely on the nature of the attack and the damage it caused. Different criminals want different things, and while the incentive is usually financial, this cost may not always be the most detrimental. Many companies find that the damage caused by a infringement in their reputation is actually more catastrophic than the direct financial cost.

The best defense is prevention. This means that companies must use reliable software, keep backup copies, protect them data provide them with various security solutions and train their staff, to identify potential threats.

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