Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Operational Security //

Data Leakage

5/25/2018
10:20 AM
Scott Ferguson
Scott Ferguson
News Analysis-Security Now
50%
50%

Kaspersky: Data Breaches Cost Enterprises $1.23M

Between 2017 and 2018, the average cost to clean up a data breach in an enterprise increased 24% to $1.23 million, according to new research from Kaspersky Labs. The recovery for small firms increased even more to 36%.

The clean-up costs for an enterprise that has sustained a data breach has increased nearly 25% between 2017 and 2018, totaling about $1.23 million for each incident, according to new research from Kaspersky Labs.

For small and midsized businesses (SMBs), the cost jumped even more -- 36% -- during the last 12 months, with each breach costing approximately $120,000 in 2018.

This look at data breaches and their clean-up costs are contained in a new report, "On the Money: Growing IT Security Budgets to Protect Digital Transformation Initiatives," which Kaspersky released May 24. It's based on the responses of over 6,600 IT and business executives in 29 different countries.

Overall, the cost of addressing an enterprise data breach reached a new high this year, jumping from $992,000 to clean up each incident in 2017, to $1.23 million this year. For SMBs, that number jumped from $88,000 per incident in 2017 to $120,000 this year.

(Source: Flickr)\r\n\r\n
(Source: Flickr)\r\n\r\n

The number of known data breaches also increased significantly in 2017 -- by the end of last year, there were 5,207 known data breaches, a 20% increase over the previous high-water mark set in 2015. (See Data Breaches Topped 5,200 in 2017, Smashing Records.)

Rob Cataldo, the vice president of enterprise sales for Kaspersky Lab North America, told Security Now that there are several reasons why the costs of data breaches rose so significantly over the past 12 months, such as enterprises' migration to the cloud. In addition to the breaches themselves, many businesses, large and small, are simply investing more in security, whether it's technology, people or both.

"This higher price tag may be due to the increased complexity of the IT infrastructure which businesses are investing in more and more, which includes those moving to the cloud," Cataldo wrote in an email. "As awareness of cybersecurity incidents increases, with new attacks in the news headlines on a daily basis, threat mitigation has become more of a priority for the enterprise and executive management is more willing to invest in the infrastructure needed to maintain the highest levels of data security."

The report found enterprises of all sizes are faced with the challenge of ensuring that data in the cloud remains secure. Since cloud remains relatively new, businesses are struggling with ensuring that their customer data remains protected as they retain the responsibility for that data, while the cloud provider ensures that the infrastructure remains intact. (See TeenSafe Data Leak Shows Cloud Security Weaknesses.)

For smaller businesses, with more limited staff, these costs can spiral out of control quickly.

"SMBs also saw significantly higher costs stemming from factors like employee training and extra PR to repair brand damage, underscoring the increased attention towards cybersecurity that many SMBs are seeing from their customers and business partners," Cataldo wrote.

For large enterprises and small businesses, North America remains the most expensive place to have a data breach in. On average, enterprises in the US and Canada will pay $1.6 million to clean up after an incident this year, while an SMB can expect to pay $149,000 on the average.

"In North America there are a few strategic impacts that drive the cost of a data breach well beyond that of other regions," Cataldo wrote. "Examples include the increased cost of repairing reputational damage or the high cost of finding and employing external professionals to mitigate the impact of a breach."

Cataldo added that new laws and regulations, such as the European Union's General Data Protection Regulation, or GDPR, is likely to add to these security costs going forward. (See GDPR: SecurityNow's Need-to-Know Guide.)

Related posts:

— Scott Ferguson is the managing editor of Light Reading and the editor of Security Now. Follow him on Twitter @sferguson_LR.

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
Edge-DRsplash-10-edge-articles
I Smell a RAT! New Cybersecurity Threats for the Crypto Industry
David Trepp, Partner, IT Assurance with accounting and advisory firm BPM LLP,  7/9/2021
News
Attacks on Kaseya Servers Led to Ransomware in Less Than 2 Hours
Robert Lemos, Contributing Writer,  7/7/2021
Commentary
It's in the Game (but It Shouldn't Be)
Tal Memran, Cybersecurity Expert, CYE,  7/9/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
How Data Breaches Affect the Enterprise
Data breaches continue to cause negative outcomes for companies worldwide. However, many organizations report that major impacts have declined significantly compared with a year ago, suggesting that many have gotten better at containing breach fallout. Download Dark Reading's Report "How Data Breaches Affect the Enterprise" to delve more into this timely topic.
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2021-4020
PUBLISHED: 2021-11-27
janus-gateway is vulnerable to Improper Neutralization of Input During Web Page Generation ('Cross-site Scripting')
CVE-2021-23654
PUBLISHED: 2021-11-26
This affects all versions of package html-to-csv. When there is a formula embedded in a HTML page, it gets accepted without any validation and the same would be pushed while converting it into a CSV file. Through this a malicious actor can embed or generate a malicious link or execute commands via C...
CVE-2021-43785
PUBLISHED: 2021-11-26
@joeattardi/emoji-button is a Vanilla JavaScript emoji picker component. In affected versions there are two vectors for XSS attacks: a URL for a custom emoji, and an i18n string. In both of these cases, a value can be crafted such that it can insert a `script` tag into the page and execute malicious...
CVE-2021-43776
PUBLISHED: 2021-11-26
Backstage is an open platform for building developer portals. In affected versions the auth-backend plugin allows a malicious actor to trick another user into visiting a vulnerable URL that executes an XSS attack. This attack can potentially allow the attacker to exfiltrate access tokens or other se...
CVE-2021-41243
PUBLISHED: 2021-11-26
There is a Potential Zip Slip Vulnerability and OS Command Injection Vulnerability on the management system of baserCMS. Users with permissions to upload files may upload crafted zip files which may execute arbitrary commands on the host operating system. This is a vulnerability that needs to be add...