What is the actual cost of a data breach?

26 Jul

Too many companies are under the illusion that the cost of a data breach is just the immediate cost of updating systems, securing them and even replacing equipment and setups. In fact, the cost of a data breach runs far deeper than that. This is how a data breach could affect your business:

  • Customer loyalty will dwindle and as a result, sales will decline.
  • New records need to be created for customers and data for your business. This costs in terms of software, systems and teams to handle implementation.
  • Future business could be affected, as your business will gain a poor reputation.
  • Depending on the nature of the data breach and the terms and conditions that you have in place with regards to sensitive data, you could be faced with costly legal action in the event of a data breach.

According to stats mentioned on Healthcare IT News, with regards to data breaches in the health care field alone, the average cost of a breached file in the USA is anything from $ 5 to $158 per file. That statistic alone is shocking when you think about global stats that reflect South African businesses have around 10 000 files breached, per breach – and that’s simply because of a lack of security measures! In fact 90% of data breaches affect small to medium size business!

A 2016 report from research conducted by Ponemon Institute on 383 organisations, across every industry and 12 participating countries, included South Africa for the first time. The study confirmed the highest cost of breaches to be in the US and Germany ($221 and $213/capita), while South Africa was one of the lowest organisational costs at $1,87 million. The disturbing fact was that of all the data breaches across South Africa only 37% were caused by malicious attacks, while human error was responsible for more than 60%!

What can you do to ensure that you don’t suffer the cost of a data breach?

  • Ensure that all passwords are secure and regularly updated.
  • Place limitations on network access. Don’t allow everyone to access all information.
  • Limit how staff members connect to the network – with particular attention on personal devices.
  • Carry out regular cloud backups to ensure that no sensitive data is stored locally and in the event of a system malfunction or breach, the information and data you need is safety stored in the cloud, and encrypted.

With just a bit of attention, effort and the assistance of the right cloud backup service provider, you can safeguard your business from potentially crippling data breach costs. For more information on how to protect your business, view our cloud backup package features and chat to one of our knowledgeable consultants!

Comments are closed.