The Financial Burden of Inadequate IT Services and Security Data Breaches
January 12th, 2021 by Max Queen
How much will it cost your company to recover following a data breach? New research from IBM Security paints a sobering picture, with costs increasing by 450,000 on average from 2019 to 2020. And here in the U.S., businesses can expect to pay even more than other countries to respond to a data breach.
A Look at the Numbers
Here's a look at some numbers that show how critical a comprehensive IT security strategy is for your company according to IBM Security.
- The global average cost of a data breach in 2020 is $3.86 million.
- The average cost per lost or stolen record in regards to customer PII is $150.
- In the United States, the average cost of a data breach per organization is $8.64 million, a figure more than 2 times higher than the global average.
- Savings in average total cost of a data breach in organizations with full suite security automation are $3.58 million compared to those without automation deployed.
- Costs for data breaches in healthcare, finance, and education sectors are significantly higher than for other industries.
The High Cost of Recovery
When looking at the total cost to clean up a data breach, businesses must factor in a loss of business. In the U.S., the impact of business lost following a data breach costs an average of $1.52 million in 2020. As companies attempt to recover following a breach, a devastating loss of business often follows and may stem from the resulting negative impact on consumer confidence.
Who's to Blame?
IBM Security discovered that hackers and inside criminal activity caused 52% of data breaches. System failures and glitches comprised another 24%, and user error was to blame 24% of the time.
The Way Forward
Threats to your organization from data breaches are not likely to go away anytime soon, but there are solutions to keep them at bay. Professional Managed IT Security Services can provide comprehensive protection for your business, including mobile protection, data backup and disaster recovery, and secure solutions for your print infrastructure.
Our team at Function-4 would love to handle and discuss any further questions or concerns you may have on the topic of data breaches and IT services, as well as ways we could possibly improve your business. Feel free to visit our website or contact an advisor below!
Posted in: Cybersecurity