Did you know that criminal and malicious attacks are the number one cause of data breaches in the first six months of 2020, according to an OAIC (Office of the Australian Information Commissioner) report! These breaches usually involved contact information and of all cases, 22% were reported by the health sector, while 14% by the finance sector.
If you run a serious business you must be aware of the importance of having strong cyber security because a data breach could cost your business quite a lot. But, how much exactly? To help you find out the answer, 6YS – the ultimate tech company offering a broad IT as a Service Portfolio – has come up with the following guide on data breach, how it can affect your business? how much could it cost? and how to prevent data breaches.
How Could Data Breach Affect Your Business?
The following is a list of the most common harmful effects data breaches could have on businesses:
- Business loss – data breach could easily harm the reputation of your business and partners and eventually lead to company loss
- Investment loss – this is mainly due to the time needed to let the authorities know about the incident
- Financial loss – in case of information and/money theft your business may be affected financially
How much Could a Breach actually Cost?
Precisely speaking, an average breach cost in Australia is remarkable $2.13 million which is stated in a Data Breach Report by IBM (International Business Machines Corporation). The same report shows that in the Asia-Pacific (APAC) region a data breach costs a whopping $2.62 million.
Also, in the past three years, theft or loss has reached records in the APAC region making it the worst global location regarding damages which include the average size of the breach, both total and per-record cost, and surprising customer turnover.
Attacks recorded by APAC companies were in most cases Denial of Service attacks (DoS attacks) which are characterized by huge website assaults and web application attacks. According to APAC businesses, the total average cost of such attacks is from $1.1 million to $2.4 million per company.
Even though breaches caused by human error or system failure make up half of the overall cases, the most common and expensive are malicious breaches which may cost up to $4.45 million on average per company. Finally, the report notes that investing great resources is key to recovering from a data breach in Australia.
How to Prevent Data Breaches?
As we already mentioned, the most common cause of data breaches is malicious or criminal attacks which show that data security should be businesses’ number one priority when building their cyber security strategy.
To prevent data breaches companies should:
- Have a strong data breach recovery plan
- Train employees in cyber security systems and strategies
- Use strong passwords and reset them regularly
- Use multi-factor authentication
- Ensure plugins, browsers, and operating systems are up-to-date
- Use anti-virus protection against malware
- Seek help from companies offering professional services
And, if you want to ensure your company gets the best services possible, contact 6YS today!