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The Real Costs of Recovering From a Security Breach

October 22, 2015 Leave a comment dridrive

Cyber Security Man pressing virtual screenJust in time for National Cyber Security Awareness Month: Nearly every organization has to deal with a security breach of some kind. But how hard does it really hit the budget? A recent study asked 5,500 companies and found the cost could be as high as half a million USD to recover — and the costs don’t end there!

Large businesses can expect to pay an average of $551,000 in direct expenses including payment for professional services, covering lost contracts, and downtime, while small businesses end up spending $38,000.

Additionally, the survey by Kaspersky Labs found that indirect costs, such as additional staffing, training, and systems upgrades required to cope with the breach or prepare for a future incident, can cost large companies $69,000 and small businesses $8,000.

The three most expensive types of security breach:

  • Cyber espionage ($69,026)
  • Third-party supply failure ($68,758)
  • Network intrusion/hacking ($55,973)

One bright spot: IT specialists are taking cyber threats much more seriously: 50% of IT professionals listed prevention of security breaches as one of their three major concerns, up 20% from the previous year.