Data breaches: their hidden costs and preventive measures
In the ever-evolving digital landscape, the importance of cybersecurity has never been more crucial. As we delve into the past, let's revisit a significant milestone in the history of data breaches – the year 2015.
According to a study by The Ponemon Institute, the average cost of a data breach in 2015 was approximately $3.79 million. This figure, though seemingly high, serves as a stark reminder of the financial impact such incidents can have on organizations.
Every piece of software and hardware used by an organization could potentially serve as a gateway for hackers. To mitigate this risk, businesses were advised to train employees to be vigilant and educate them about emerging threats. This includes awareness of hacking techniques such as phishing and social engineering attacks.
Hackers often target employees instead of taking on the firewall. Clicking on a malicious link in a phishing email can give hackers access to a network, making employee training a crucial aspect of cybersecurity.
Moreover, a zero trust environment is implemented by firewalls and takes away the automatic assumption that an action or actions should be trusted. Organizations should work in such an environment, treating every action with the same degree of suspicion.
The cost of a data breach extends beyond the immediate financial impact. Lost business costs, including customer turnover, increased customer acquisition activities, and reputation losses, also saw a significant increase. In 2015, these costs rose from £950,000 in 2014 to £1.07 million.
The total average organizational cost of a data breach increased to £2.37 million in 2015, up from £2.21 million in 2014. This includes manhours, software/hardware/vendor expenses, and repairing financial and IT systems.
To avoid these costs, businesses were urged to create a dedicated budget to address cybersecurity. This proactive approach can help prevent breaches and the subsequent financial and reputational damage.
Lastly, the advice to employees is to remain vigilant and question any unexpected emails with attachments. Hackers can exploit compromised employee-owned devices to gain access to networks and data, making employee awareness a key component in the fight against cyber threats.
In conclusion, the cost of data breaches in 2015 was substantial, underscoring the importance of robust cybersecurity measures. As we continue to navigate the digital world, it's crucial for businesses to prioritize cybersecurity and invest in employee training to protect their networks and data.
[1] Source: Wieland Alge, VP & GM EMEA, Barracuda Networks. [3] For more recent data on data breach costs, see https://www.ponemon.org/data-breach-cost-calculator/
In the realm of business, a substantial portion of the financial budget should be allocated towards cybersecurity to prevent data breaches, as evidenced by the average cost of a data breach in 2015 being approximately $3.79 million. Furthermore, as technology continues to shape the business landscape, organizations must prioritize employee training to foster awareness about cybersecurity threats, such as phishing and social engineering attacks, to safeguard their networks and data-and-cloud-computing resources.
