What is the Real Cost of a Cyber Attack?
Did you know that a single cyber attack can cost an enterprise company millions of dollars and completely devastates small businesses?
As we become increasingly more dependent on the internet to store and communicate important and delicate information, the need for exceptional cyber security increases in tandem. Organizations small and large suffer from breaches and intrusions more and more frequently. The only thing safe to say is that no one in the business world can guarantee safety from a cyber attack.
High-profile and costly attacks against governments, health organizations, financial institutions, corporations and smaller scale businesses can be found in news reports daily.
According to Fortune Magazine, cyber attacks cost companies $400 billion annually but the real cost of a cyber attack goes even further. You have to consider all aspects, from the cost of response to cyber-insurance and everything in between.
Cyber attacks often lead to repeat intrusions. This is why you can’t leave your company sitting vulnerable after an attack. An effective post-attack response includes disaster recovery, security audits, new security solutions and business disruption, which all come at a cost.
According to a survey conducted by the Ponemon Institutein 2015, as reported by Security Week, “…the average annual cost of responding to cyber attacks was $12.7 million, up 96 percent over the previous five years.”
Rising Cost of Cyber-Insurance
Insurance companies began capitalizing on potential threats from cyber-criminals years ago, however with the increase in both quantity and scale, insurers are either cutting back on coverage, increasing rates, or both, due to the costly attacks of the recent past.
Not only have premiums shot up a whopping 32% for many companies protected by cyber-insurance- according to Reuters, but deductibles are also increasing and some insurers are limiting coverage to $100 million.
Many industries today rely on cloud and other cyber services to store sensitive personal data. Many of these industries have adopted strict regulations revolving personal data and its security. Therefore, on top of the deficits inherently created by cyber attacks, these sorts of industries incur additional costs through regulatory fines.
HIPAA fines can range up to $50,000 per violation. These costs can add up quickly with large-scale data breaches.
Loss of Consumer Trust
Customer loyalty drives a consistent and profitable business. That being said, intangible costs have a real impact on the bottom line. For instance, the infamous Target data breach of 2014 is still having an effect on this retailer.
According to Forbes, the company’s profit decreased 46% following the breach on top of the $61 million the company had already spent on damages. Despite the damage in revenue, no amount of money can regain customer trust and loyalty after a cyber attack. This bullet point is possibly the most costly of all.
Awareness and training are key to maintaining an effective cybersecurity program at your organization. All employees should be trained in IT security best practices, as appropriate for their skill levels and job roles. The entire organization must get on board with improving cybersecurity measures in order to keep your data safe and sound. Creating a company culture of awareness and relevancy to cybersecurity procedures is the best way to fend off potential threats and keep your customers and employees out of harm’s reach.
The Optimal Training Solution
CyberTraining 365’s Data Security and Privacy Training is a comprehensive training solution aimed at teaching employees how to identify, mitigate and report cyber threats; creating awareness of information security risks for all roles across a company, Finance, HR, Legal, IT, Marketing, etc. This training is available on https://datasecurity365.com.
The training is subscription based, which is great for optimizing your budget with rotating seats, and has white-labeling availability. This way, you can keep your academy consistent with your internal branding.
On top of this, you can create a wider library for your business with advanced cyber security training courses for your IT team, data security and privacy training for your non-technical employees and the most current, up-to-date methodologies for your cyber security team to keep up with the industry.
CyberTraining 365 is an online academy that offers nearly 1,000 hours of relevant and cutting edge cyber security training. Our training provides the most in demand industry certification prep courses including EC-Council, CompTIA, (ISC)2 and Cisco; all taught by leading cyber security experts. All of our offerings are aligned with the national initiative for cyber security education (NICE) and ensure the most up-to-date information for this constantly shifting field. With engaging content in a scenario-based format, CyberTraining 365 uses bite-sized micro-learning methodology ensures learners are not overwhelmed with information. On Demand LMS platform has white-label capabilities ideal for internal training purposes.