Everyone must take steps to protect their data. In some cases, data breaches can take place. For those who might not know, a data breach takes place when a person or entity gains access to data that he or she should not be able to access. When these breaches take place, they can be very costly.
According to a recent new article, one major Canadian lender, Desjardins Group, revealed that a breach earlier this year cost them more than $53 million (USD). This breach exposed the personal data of close to 3 million of its members. Sadly, they are not alone. Another company, called Norsk Hydro indicated that the final bill for its cyberattack, which also led to a data breach, could cost them as much as $75 million. While this attack, hopefully, will not cost them that much, it remains to be the same.
Without a doubt, these are the most high-profile examples of data breaches; the financial impact of these breaches cannot be overstated. Based on a comprehensive report that was published earlier by tech giant IBM, the average cost of these breaches is around $4 million. For a small business, this type of attack could be enough to put them out of business. That same report showed that the cost of these breaches is going up, which is even more concerning. During the past five years, the cost of these attacks has gone up by 12 percent. Some of the expenses that are included in these breaches include direct costs, time spent dealing with the breach, lost revenue as a result of the breach, bad publicity, and fines that are levied by regulatory authorities as a punishment for surrendering the data of customers.
The Trends in Data Breaches
Unfortunately, the information shows that data breaches are getting bigger and more expensive. Across the world, 30 percent of all organizations will likely suffer at least a single data breach in the next two years. Organizations based in the United States could be facing an average cost of more than $8 million for their breaches. Some of the reasons why these costs are so much higher include a different regulatory landscape and individualized state regulations. Even in the United Kingdom, the financial downfall from these breaches can be extensive.
In terms of data breach size, the average is more than 25,000 records surrendered. This is a significant problem, particularly in the US, where the average size is more than 32,000 records. This has been going up during the past few years. The average cost per record in the United States is more than $240.
The bad news is that the true cost of these data breaches is hard to estimate. This is because one of the side effects of a data breach is a significant breach of trust on behalf of the consumer. One of the most notable breaches involved Equifax, a major credit monitoring agency in the United States. They surrendered millions of records in their breach, and this contained confidential information on numerous people throughout the United States. While these “mega-breaches” are still rare, even a small data breach could lead to consumers never trusting the organization again. This could be enough to send a company into bankruptcy.
For these reasons, everyone needs to take steps to protect their data. It is also incumbent on companies to keep up with the latest cybersecurity measures to prevent these breaches from happening. Even a single breach could end up costing a company millions of dollars.
Trust the Trained Professionals
Data breaches are a severe problem, and companies need to take steps to prevent them. Anyone who is looking for the latest cybersecurity measures to defend against data breaches and other threats should reach out to trained professionals today. We have the tools necessary to protect businesses and organizations from harm. Give us a call today to learn more about our services! We would be happy to help you!