Companies only consider the cost of data breach when it's too late

The Cost of a Security Breach. Is it Always Business As Usual ?

If you own a business, getting your personal or even company information hacked can have dire consequences.

Running a successful business always implies a degree of risk, however, in today’s day and age of rapidly expanding growth of internet based technology, companies are finding themselves encountering a form of risk that often times goes unnoticed: cyber attacks.

The average cost due to damage or theft of IT assets and infrastructure increased from $879,582 in 2016 to $1,027,053 in 2017, states a Ponemon Institute Study. The average cost due to disruption to normal operations increased from $955,429 to $1,207,965.

Even worse than this, according to Inc. 60% of all small business fail within 6 months due to cyber attacks.

According to research by the Varonis Data Labs in 2018, 41 percent of companies have over 1,000 sensitive files open to everyone.

Cyber attackers look for unsecured folders the moment they gain access to a network, as well as folders open to global access groups.  Global access groups include everyone, domain users and authenticated users. This gives them easy access to business plans, customer and employee data, credit card information and much more.

Overexposed data presents a huge risk to businesses of all sizes regardless of the industry or location, but for small and medium size businesses it could mean millions of dollars in losses, reimbursements, and legal fees that end up bankrupting the business.

Any business that strives for innovation is likely to use Internet based, disruptive technologies, which increase the risk of being hacked.

In the Ponemon Institute study, 48% of small and medium sized businesses (SMB’s) report social engineering/phishing were the most common kind of attack present.

54 percent of respondents in the study claimed data breaches occurred due to negligent employees or contractor.

Even assuming an SMB survives a cyber attack financially, the reputational damage would be just as catastrophic.

Security is everything in a business, both internally and to prospective clients. If a company is hacked or breached, and client information exposed, no one will want to take the risk of doing business with your company. The perception that your business is unreliable or even a liability can destroy your credibility and tank your business completely.

In the worst of scenarios, you may not even notice you’ve been breached for weeks or months, at which point recovery will be next to impossible.

One of the reasons so many businesses fail is because they have an inadequate strategy for managing cyber attacks.  SMB’s may have fire walls, anti-virus software, malware protection, and encryption but they don’t plan for the event of an actual breach.

While businesses focus on keeping attackers out, the actual data itself remains accessible and unmonitored.

Businesses are losing more records in a data breach. Companies represented in the Ponemon study lost an average of more than 9,350 individual records as a result of a data breach in 2017, an increase from an average of 5,079 in the 2016.

A business needs a fully redundant system to access their applications and data and regular offline backups stored in multiple onsite and offsite locations.

Nerd Support’s experienced team can guarantee your business is prepared and keep your data secured, so that a breach doesn’t mean failure.

With a business continuity plan that is tailored to your needs your needs, you can get peace of mind knowing your information is safe.

Contact us today for a FREE IT Test!

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