How Much Do Cyber Security Breaches Cost?
Cybercrime is now one of the most prevalent and damaging criminal activities on the planet. It appears no business is safe, with hackers, fraudsters and cyber criminals targeting organisations of all shapes, sizes and niches as well as individuals. According to Lloyd’s of London, serious cybercrime has cost the global economy more than £92 billion, that’s higher than the cost of the world’s worst natural disasters. Businesses who fall victim to the tools and techniques used by cyber criminals suffer direct financial losses, but how much does a cyber security breach cost?
Cost and recovery times by cybercrime type
The average cost of a cyber security breach comes down to the type of cyber-attack used. The type also influences the recovery time, which ranges from 2.5 days to 55.2 days! The techniques and tools used by hackers and other cyber criminals are becoming more and more sophisticated. Whilst an increasing number of businesses have improved their cyber security processes, new practices are being used by cybercriminals to identify vulnerabilities and exploit loopholes. As a result, the financial cost of the average cyber-attack is increasing with more damaging, difficult to recover from consequences for the businesses at the centre of these breaches.
The average cost for the UK business community and recovery times are as follows:
Malware attacks – cost: £1.57 million. Recovery time: 6.4 days
Web-based breaches – cost: £1.52 million. Recovery time: 4 days
Denial-of-service (DoS) attacks – cost: £1.31 million. Recovery time: 16.8 days
Malicious insiders – cost: £960,000. Recovery time: 50 days
Malicious code – cost: £960,000. Recovery time: 55.2 days
Phishing and social engineering – cost: £960,000. Recovery time: 20 days
Stolen devices – cost: £700,000. Recovery time: 14.6 days
Ransomware – cost: £520,000. Recovery time: 23.1 days
Botnets – cost: £260,000. Recovery time: 2.5 days
Certain cyber-attacks are costlier due to a company’s size. Statista revealed that the average cost of a cyber security breach can be £19,600 for a large business, dropping down to £3,070 for a medium sized enterprise and dropping further to £1,380 for a small or start-up company. Whatever your company’s size however, the cost of a cyber breach will provide a damaging blow.
Other costs for UK businesses
It’s not just the financial implications that are difficult to handle for those affected by cyber security breaches. As well as loss of profits, cyber-attacks can damage a brand’s reputation to diminish trust and reduce sales. Other costs will also arise from the theft of corporation information, financial data, money, disruption to trading, and loss of business. You may be subject to fines and regulatory sanctions if the security of the personal data you hold has been compromised.
How you deal with the cyber-attack in those initial hours and days can make or break your business. Preserving the customer relationship and protecting your business’ reputation is an important focus. Safeguarding the trust you’ve spent some much time, effort and money building over the years is all about communication, so keep customers, clients, suppliers and partners informed in the wake of a breach.
Want further advice about increasing cyber security for your company? Find the latest on our blog roll or contact our team for support.
A specialist IT Company based in Corby, Northamptonshire, Syntec Systems provide expert IT Solutions and IT Support services to businesses in the local area. Syntec Systems specialise in IT Management, IT Consultancy and IT Procurement, and their experienced technicians also offer a 24/7 helpdesk service to help resolve untimely IT Issues for all businesses with no prior contract.