The Cost of a Data Breach in 2023

Cybercriminals continue to present new challenges for businesses around the world with the average data breach cost skyrocketing in recent years.

Summary

Data is an equally valuable resource for small and medium-sized businesses (SMBs), and enterprises. Whether client details, financial statements, or trade secrets, protecting your information from data breaches is a high priority.

While you know the importance of sensitive data to your business functionality, cybercriminals also find that same data valuable to their nefarious activities. SMBs and enterprises can prepare by investing in cybersecurity services.

Hackers are a worldwide threat and are presenting new challenges for business owners. By some estimates, the average cost of a data breach in 2023 could reach $5 million. Once threat actors breach the network perimeter with a cyber attack strategy, organizations are left in reactive mode.

Cyber Attacks Against SMBs and Enterprises

Security breaches dominate headlines despite an increased focus on risk management plans. Whether through social engineering malware, phishing, or viruses, hackers will continue looking for new ways to circumvent security defenses.

A security breach can take on different forms because cybercriminals work nonstop to find vulnerabilities worth exploiting. Their goal is to infiltrate, steal, and profit from valuable data and credentials. Malware can gravely damage your server, computer, or entire network.

You can prepare your business with an incident response plan. Doing so strengthens your position to detect, manage, and quickly recover if you get hit with a cybercrime.

Security Challenges for Small to Midsize Businesses

Dealing with a cybersecurity incident is a challenging endeavor. Do not get caught off guard by assuming your business is too small. Any business functioning in digital spaces is subject to cyber threats.

Lack of preparation exposes your business to the type of vulnerabilities cybercriminals seek to exploit. Your security team should not only understand the consequences of a data breach but also be prepared to take action.

Hard Costs of Data Breaches

A cyberattack can have a devastating impact on small and medium-sized businesses. One breach in data security can interrupt the entire operation and limited resources could increase recovery time. Some SMBs may never recover.

System downtime directly affects employee productivity. Furthermore, customer service suffers when business operations cannot function after cybercrimes such as ransomware attacks. The financial impact reaches the bottom line in different ways such as:

• Investigating the origin of the breach
• Compensating affected customers
• Developing incident response efforts
• Investing in new data security measures

Repercussions can extend beyond financial losses if an SMB has business relationships with large enterprises.

Long-term Consequences of Data Breaches

One of your most prized assets is a good reputation within your industry and with the customers that you serve. Customers put their trust in your company when they share sensitive data. A breach in your security system can severely damage the very relationships you have worked so hard to curate.

The result is a loss of that trust and a diminished corporate reputation. No matter how well your business recovers with a quick response and cybersecurity remediation practices, a tarnished reputation is a strong possibility.

Enterprise Businesses Also Face Data Breach Challenges

Large companies also suffer the serious consequences of a data security breach.

Hard Costs of Data Breaches

Even though large corporations have more resources to bounce back, financial losses are still their reality after a cyber attack. Potential costs enterprises face are similar to SMBs. Additionally, enterprises can get hit with legal fees for various lawsuits.

Long-term Consequences of Data Breaches

Large corporations also face reputation damage to their corporate brand. Since information lives on the internet forever, a data breach can impact your reputation years after it occurs.

Your PR or marketing department will spend a lot of time and resources on damage control after falling victim to a cyber attack. They could spend years restoring the trust of their partners and their reputation with their customers.

Another possible long-term consequence is your business becoming a less attractive employment option. IT and security professionals may choose a company that has not suffered a data breach.

Shielding Your Business from Costly Cyber Attacks

One way you can protect your business against cyber attack losses is with cyber insurance. Plans offered through insurance providers cover liability claims after your business suffers a data security breach. Sensitive customer data generally covered in cyber insurance include:

• Credit card numbers
• Driver’s license numbers
• Social Security numbers
• Healthcare records.

Get Protection for Data Breach Prevention

Understanding the average data cost of data breaches is an important step toward safeguarding businesses. Whether your business is in the healthcare industry, financial industry, or major other industry, Meriplex offers an action plan to help small, medium, and large businesses protect what their hard work has built.

Meriplex is a leading provider of cyber protection services. We provide automation technology, data protection, and risk management plans that cover the threat landscape affecting the business world. Our customized solutions can help you prevent, detect, and respond to an attack.

Connect with us today and learn how a Meriplex risk assessment or other services can reduce the threat of a security breach.