In recent years the cost of enterprise data breaches has risen to $1.41 million in 2018, up from $1.23 million in 2017, according to new research from Kaspersky and B2B International.
But enterprises which deployed an internal Security Operation Centre (SOC) have been able to reduce financial damage from a cyberattack at $675000. The IT security budgets now average $18.9 million, up from 2018’s $8.9 million says the research and the Worldwide IT spending is projected to total $3.74 trillion for 2019.
“Establishing an internal SOC involves purchasing the necessary tools, building processes and recruiting analysts, which can be a challenge for any business,” said Veniamin Levtsov, vice president of corporate business at Kaspersky. “Likewise, finding a DPO who can combine IT security and legal knowledge is not an easy task. These require time and budgets, and security leaders often find it difficult to justify such initiatives.
But as we can see, these are worthwhile investments. Of course, just having a dedicated employee or even special subdivision does not guarantee that a company will not suffer a data breach. However, it does ensure that the business is prepared for these incidents, allowing them to recover from an attack more quickly and efficiently.”
Key Findings:
- 34% of companies with a data protection officer didn’t lose money when they suffered a data breach. And 38% of enterprises feel they lack sufficient insight on the threats facing their business.
- Unethical practice in IT carry weight for frequent form of business data breach. Cyber breach impact businesses causes substantial damage to credit rating/insurance, need to hire external professionals, lost business, need extra PR to repair brand damage, addition to internal staff wages, compensation, as well as penalties and fines.
- 57% businesses feel they lack sufficient insight on the threats facing their business.Only 12% enterprises are concerned about malware infection, despite it being the costliest security incident for them at $2.73 million.
- 61% of both enterprises, and small and medium sized businesses, with 50 to 999 employees (SMB) in North America are looking to increase their investment in specialist IT staff this year.
- Policies regulating third-party access aren’t increasing enterprise protection, but simply three times the potential for compensation.
- Organizations having Security Operation centre nearly halves the financial impact of enterprise data breaches from $1.4 million to only $675,000 says research.
- (Image Courtesy: www.secureops.com)