What is the Cost of a Cyber Attack?
Even as we shift our focus more and more toward tech security, it’s not perfect (and it’s unlikely that it ever will be). Even major corporations are at risk for – and have fallen victim to, quite recently – security breaches, whether it was in the form of leaked credit card information, hacked e-mails, or any other form of information compromise. A breach in cyber security is a threat to profits, to customer loyalty, and to the business’s security in general. Let’s take a closer look at what it means if your company’s virtual data isn’t secure.
The Average Loss per Cyber Attack is $3,220,000
…Not to mention that that number is higher in the United States. Here in the US, a major company can lose out on $5,850,000 when it suffers a major attack, which is the highest average net loss in the world. Germany pulls in second at $4,740,000 lost on average, and not even France or the UK can compare.
The Cost of Additional IT Security is Nothing in Comparison to Potential Losses
Obviously, the only way to prevent these massive losses due to cyber-attacks is to increase cyber security. The problem is that most companies don’t want to make this investment, as it sometimes comes with a bit pricetag. What these companies don’t realize is that, according to IBM, a stronger security presence could save a company up to $14 per lost data record. Bigger amounts of data compromised means bigger losses – but effectively, this means that the average company could increase their IT spending by $330,000 and still break even should there be an attack.
Companies Spend the Least on Data Center Systems
It’s plain to see that the digital world’s economy has grown at a staggering rate, thanks to the rise of mobile devices and cloud-based services. However, not many companies are investing on bigger, better data center systems. Telecom services rake in 8 times more revenue per year than data center systems; however, investing in better data center systems could mean investing in better security. Hopefully there is an upward trend to come.
Certain Industries Feel it the Worst
Every industry is at risk for data breaches, but a few are the biggest targets: banking, retail, IT, and hospitality. It seems that education, transportation, and entertainment, on the other hand, are the least at risk. Whether your business is in any of these industries should play a role in how seriously you’re taking cyber security.