Your business, your privacy, your livelihood — all could be exposed and endangered by a cyberattack. Being the victim of a cybercrime is terrifying, and the trouble doesn’t always end once the breach is discovered and patched. The true recovery cost of cyberattacks covers a range of financial burdens, reputation management and internal protocol revisions.
But it’s the financial burdens that could make the most immediate and significant impact to your business. Let’s look at the numbers.
The financial impacts of a cyberattack have been rising in recent years. In 2023, the average cost of a data breach totaled $9.48 million, up from $9.44 million in 2022.1 The global average stands at $4.45 million, which shows a 15.3% increase over three years.1
What Factors Affect Recovery Costs?
Millions of dollars to recover from cybercriminals’ misdeeds? What is that money going toward?
Related: The Importance of User Identity Verification for Help Desks
Many organizations have turned to cyber insurance to address the issue. Cyber insurance covers damages caused by electronic threats that lead to the theft, damage or misuse of sensitive information.2 Premiums for cyber insurance depend on how much coverage you’ll need, so they vary. But some in the industry say rates for cyber insurance may be falling in the near future.3
Still, as the saying goes, “an ounce of prevention is worth a pound of cure.” Cyber insurance should be thought of as a safety net. It’s best to take preventive action to protect your business against harmful cyberattacks.
Trends seem to be shifting toward more targeted attacks, which can create more damage to businesses than a wide-ranging traditional malware attack. So, how should you address this growing threat?
Set Up an Incident Response Plan
Many businesses that experience a ransomware attack learn too late that preparing this in advance could have saved them a lot of money, pain and downtime. Create protocols, including a list of who’s responsible for certain actions, and make sure everyone is well aware of the plan.
Install Cybersecurity Defenses
No single solution is perfect, but having a cybersecurity defense can vastly reduce the risk. This includes defenses such as endpoint detection and response (EDR), antivirus software, firewalls and identity security.
Back Up Your Data
Backing up your data is especially important with ransomware. Even paying the ransom is no guarantee you’ll get your data back. Either way, it’s vital to have backups so you aren’t putting all of your eggs in one basket, so to speak.
Don’t Pay the Ransom
Paying your attacker the ransom they ask for typically isn’t an effective way to solve the problem or retrieve your data. It’s better to let your cybersecurity defenses tackle the issue and kick the attackers out.
For small businesses and medium businesses, a cybersecurity partner will likely be necessary to manage these demands. Even larger businesses can benefit from co-managed technology services. A dedicated support team is a partner you know and trust so if you call for support, they’re already up to speed with your security profile.
Partnering with Elevity gives you access to an expert team and technology that can support you in cybersecurity measures and beyond. In fact, Support is one of the pillars of our 4S approach to Technology Management: Strategy, Security, Solutions and Support. Together, we can work to prevent your business from having to spend money on expensive cyberattack recovery.
To help set the foundation for successful defenses, it’s important for your employees to understand the risks and how to protect themselves on a daily basis. Click the link below to access our helpful guide, Cybersecurity Tips for Employees.
1IBM, Cost of a Data Breach Report 2023, 2023.
2Progressive, Cyber Insurance, Accessed October 17, 2023.
3Business Insurance, Buyers set for another tough renewal as rate pressures rise, October 10, 2023.
