Small and Medium-Sized Businesses at Risk: The Hidden Costs of a Data Breach
- Matthew Clancy
- Aug 20, 2024
- 2 min read
In today’s world, no business is immune to the risk of a data breach. Yet, small to medium-sized businesses (SMBs) often underestimate their vulnerability. Shockingly, SMBs account for 43% of data breaches, as highlighted by the 2019 Data Breach Investigations Report. The reasons? A lack of time, resources, and education put these businesses at significant risk.
The Financial Reality of a Breach
Many SMBs assume that a data breach happens only to larger enterprises with vast data stores. However, cybercriminals often target SMBs precisely because they are perceived as easier targets. The financial repercussions can be devastating.
According to the 2018 InsuranceBee Cybercrime Survey, 83% of SMBs lack the funds to recover from a data breach. Even more concerning, a quarter of those businesses didn’t realize recovery costs would be involved.
The Potential Cost of a Data Breach
Let’s break down the potential costs for a firm with 100 employees:
Incident Investigation
Breach Coach: $25,000
Forensics: $60,000
Total: $85,000
Notification and Crisis Management
Crisis Management: $30,000
Notification: $2,800
Call Center: $1,300
Credit Monitoring: $90
Total: $34,190
Grand Total: $119,190
This staggering figure doesn’t even account for the potential loss of customer trust, legal fees, or the long-term impact on your business’s reputation. For many SMBs, a breach of this magnitude could be a financial death sentence.
Take Action Before It’s Too Late
The good news? You don’t have to face these risks alone. You can significantly reduce your cyberattack vulnerability by taking proactive steps to secure your business’s data.
As a seasoned IT consultant with extensive experience in cybersecurity, I can help you assess your current security measures, identify potential weaknesses, and implement strategies to protect your business from the ever-evolving threat landscape.
Don’t wait until it’s too late. The cost of inaction could be catastrophic. Let’s ensure your business is fully protected. Schedule a consultation with me today to review your security and take the first step towards safeguarding your business.
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