Cost of a Data Breach

The Increasing Cost of a Data Breach

The cost of a data breach has spiked over 6% in the last year according to a recent report by the Ponemon Institute.  The cost of a breach rose from $141 per record compromised to $148 per record in 2018.  This makes the average cost of a breach for US companies $3.86 million.

Some verticals are hit even harder, with Healthcare being at the top of the list.  Their cost of a data breach is $408 per record, which is almost 3 times the cost of a typical breach.  Healthcare providers also face potential fines from regulatory bodies such as HIPAA which can increase the cost of a breach.

In addition to the initial cost of the breach the fallout can cause customers and clients to run to your competitors.  That diminished trust can be devastating, especially in a climate where consumers usually have a lot of options and brand loyalty is at an all time low.

Why Business Owners Don’t Invest in Security

In consulting with small and medium business owners budget for network security is often a concern.  They feel that they simply can’t justify the cost of proper network security.  Alternatively, they feel that their organization is small enough that it won’t be a target.

Security through obscurity isn’t a strategy executives should adhere to in 2019.

In a recent article on NBC News Adam Levin explained.

“Don’t think for a moment that your organization isn’t that interesting to a hacker because no company is too small, too unimportant or too irrelevant to be a target,” said digital security expert Adam Levin, author of the book “Swiped” and founder of a company that helps businesses prepare for and deal with breaches.

Businesses that fail to put proper safeguards and security measures in place to protect their digital data are foolish.  The cost of a potential breach is so high and so potentially devastating that you have to have a solution for it.  Businesses spend thousands each year in insurance premiums to protect themselves from potential risk.  They should start to look at network security in the same manner.  It’s a cost of doing business, and one that shouldn’t be avoided.

What Is Your Strategy?

Business owners should take some time to examine their current IT security strategy.  You should have solutions in place to manage a few key areas.  A layered security plan like this one is helpful.

Additional solutions may be needed for your specific industry and compliance needs.

Another area to examine is your current strategy for disaster recovery.  Do you have a solution in place that would allow you to recover critical network resources on a timeline that is acceptable to your business?  What is  your cost of downtime?  If you get hit with ransomware today will you have to pay an exorbitant sum to get your data back?

Overwhelmed Yet?

The task of developing a network security and data protection strategy for your business can be daunting.  The good news is that there are experts ready to help.  i.t.NOW has supported hundreds of businesses to secure their critical data, and plan for emergencies.  We would love to discuss your needs and relieve you over the burden of IT security.