24th July 2019 | Posted in Cyber Security
Computer Weekly has reported that the average global cost of a data breach has risen by 12% over the past five years to £3.2m. The UK has seen an average increase of 10.56% in the past year alone to £2.99m.
The average size of a data breach has increased by 3.6%, representing an increase of 9.69% from 2018. This has almost doubled in the past decade, according to the Cost of a data breach report conducted by the Ponemon Institute.
The rise in costs is representative of the multiyear financial impact of breaches, increased regulatory factors and the complexity of resolving cyber-attacks and data breaches.
The report is based on comprehensive interviews with over 500 companies globally who’ve suffered a recent data breach. This includes 45 organisations within the UK and takes into account hundreds of cost factors including legal, regulatory and technical activities to loss of brand equity, customers, and employee productivity.
The fact was also highlighted that the financial impact of a data breach can be particularly detrimental for small to medium businesses.
Businesses with less than 500 employees suffered average losses of over £2million. This is a crippling amount for small to medium organisations that typically have annual revenue of under £40million.
The longtail financial impact of a data breach was also examined and identified that the repercussions were evident for years. An average data breach cost of 67% was realised within the first year after the incident. 22% of costs were accrued in the second year and another 11% accumulated more than two years after a data breach.
Ultimately, these statistics further highlight the critical importance of having comprehensive IT security in place.