What Is the Cost of a Data Breach?

With thousands of large-scale data breaches taking place all over the world, companies are becoming more concerned about their online security. Depending on the size of the attack and the overall impact on the network, data breaches can cost hundreds of thousands of dollars. The exact cost of a data breach depends on several factors, including the type of organization and the nature of stolen data. Read on to learn the factors that determine data breach costs and how you can prevent an incident in time.

The Average Cost of a Data Breach

According to a study conducted by IBM, the average cost of a data breach equals to 3.86 million dollars. However, a data breach does not only bring costs in terms of money but also in terms of time and effort that needs to be invested in recovery. Besides, a data breach will not only cause tremendous financial consequences, but it can also severely damage a company’s reputation. In other words, the cost of a data breach goes far beyond the financial aspect.

The same report has shown that the size of an average data breach has increased by 2.2% since 2017. Today, the average size of a data breach is 24 615 records, with each record costing 148 dollars on average. While these are all statistics, the reality is quite different. If you’re trying to calculate the potential cost of a data breach in your business, the average numbers won’t be very helpful. The final cost of any data breach depends on factors such as the type of organization and the size of the attack, which you cannot predict.

However, the costs are mostly affected by how well the organization is prepared for the attack. Companies that have strong security systems and response plans created in advance are less likely to suffer from enormous costs. In other words, the more your business is ready to take the hit, the less damage the breach can cause. A slow response to a potential threat or an active incident can further increase the cost of a breach. That is why it is important to act right away and stop the threat from advancing. To be able to do so, businesses need to think ahead of time. Here are a few tips on how you can protect your business from a data breach to reduce potential recovery costs.

How to Prevent a Data Breach and Reduce Costs

The best way to secure a company is to think ahead and start improving online security right away. Safety measures such as strengthening passwords, automating security, and updating the system can help improve the overall network security. One of the most important safety measures is to use a virtual private network to encrypt all data and traffic related to your business. All devices connected to the company’s network should be using a VPN to access the internet anonymously and reduce the risk of data theft.

Besides using a VPN, make sure all employees get the right cybersecurity training. Teach them the basics of keeping their devices secure to reduce the risk of potential data breaches. While training all employees to improve online security, it is important to have a dedicated cybersecurity team in place. A team of cybersecurity experts should be ready to respond in case of a potential security threat. Having such a team in your business can greatly reduce the costs and consequences of data breaches and other security issues.

Conclusion

According to Computer Business Review, over 4.5 billion data records were compromised in 2018 due to data breaches and lack of security. Millions of businesses have suffered because they failed to secure their data in time. This is why it is important to raise awareness about potential security threats and data breaches before more business go down the same devastating path. Even though the potential cost of a data breach depends on numerous factors, it is clear to say that these incidents often cost more than businesses can handle. To prevent your business from becoming the next victim, make sure to set a cybersecurity team in place and use a VPN to secure the network.