The True Cost of Cyber Breach : Incident Management
The True Cost Of Cyber Breach: Incident Management
The true cost of a data breach is far greater than the damages reported in news stories.
We’ve all seen the headlines about a recent data breach and the million-dollar lawsuits that followed. However, there is also an indirect cost of a cyber breach that can have a long-term impact on your company’s bottom line. According to Cyber Security Ventures, by the end of this year, the expected cost of cybercrime globally is $6 trillion, which is further expected to hike to 10.5 trillion dollars in 2025.
Some Major Cyber Breaches From The Past
A cyber attack can cause you money or full or partial closure of your business.
The Works had to close multiple stores across the UK earlier in 2022 due to delayed resupply of stock and online deliveries after a cyber attack. Cyber attacks do not make your pockets empty only but they also cause structural and operational damage.
Wood Ranch Medical
In August 2019, Wood Ranch Medical was hit by a ransomware attack, which locked them out of the patients’ data. According to reports, the attack rendered infected systems permanently damaged, making file recovery impossible, leading to the announcement of permanent closure of services until December 17, 2019.
In June 2014, the attackers gained access to the firm’s cloud databases, wiping out data backups, and configurations, and deleting offsite backups entirely or partially. Due to the extremely high recovery costs, in a statement, the company explained why they were shutting down.
Factors Contributing To The Real Cost Of A Cyber Breach
Cyber attacks can impact your company’s reputation and adversely affect your customers’ trust in you. This could lead to a loss of customers, or a decline in sales or profits. The consequences of reputational damage can even affect your suppliers, as well as your relationships with partners, investors, and other third parties invested in your business.
Cyber attacks frequently result in significant financial loss as a result of corporate information breaches, financial information leakage (eg bank details or payment card details), theft of money, and disruption to trading (eg inability to conduct transactions online). Businesses will generally incur costs associated with repairing affected systems, networks, and devices when dealing with the breach.
Regulatory Fines & Legal Costs
Data protection and privacy laws require you to keep the data of your customers and employees securely. If this data is compromised accidentally or intentionally, and you fail to implement appropriate security measures, you may face fines and regulatory sanctions.
The smooth operation of services is the top priority for every organisation. A cyber attack can disrupt the operation of services and cause downtime which in turn, impacts your end-users, and reputation, and in some cases cause fines due to regulations.
Sensitive Data Leakage
The cost of a data breach in 2021 was US$ 4.24 million, according to an IBM report. Data leakage can lead to regulatory fines as per GDPR and other data protection acts. It can also cause severe reputation damage and can affect the future goals of an organisation
Organisations must not overlook the true cost of cyber security. It’s just not all about money, cyber-attacks are capable of the complete closure of your business. Consider the prevention of the true cost of cyber-attack to your business by requesting a DEMO of our cutting-edge AI-based software “Managed PDR” for Prevention, Detection, and Response to prevent cyber-attacks and their hidden real cost. Managed PDR will detect and remediate the vulnerabilities across the attack surface before adversaries discover them.
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