How Much Does Cybercrime Really Cost?

Cybercrime is on the rise, and businesses are feeling the effects. In a world where nearly everything is done online, it's more imperative than ever to be aware of the dangers that lurk in the digital realm. Cybercriminals are growing and becoming more sophisticated with each passing day, resulting in 71.1 million people falling victim to cyber-crimes yearly. They are constantly finding new ways to steal information and money from businesses. So, how much does cybercrime really cost?

The global annual cost of cybercrime is estimated to be $6 trillion per year, and on average, a typical malware attack costs a company over $2.5 million (including the time needed to resolve the attack. Ransomware is also 57x more destructive in 2021 than it was in 2015, creating a much larger need for preventative measures. Not only do these attacks cost money, but they may also result in downtime, additional stress, and can take weeks or even months to mitigate. On average, enterprises needed 50 days to resolve an insider’s attack and 23 days to recover from a ransomware attack. An attacker can also compromise an environment for an average of 287 days before their presence is discovered.

One of the most common misconceptions in the cybersecurity industry is that only large companies face cyber breaches, when in fact over 50% of all cyber-attacks target small business’s. Cybercriminals will typically either try to attack multiple less sophisticated environments with lower price tags, or they can commit additional time attempting to breach a big fish. Both can be effective, but with small businesses being much easier targets, they are more often the subject of ransomware attacks and other forms of malware. The average cost of a data breach to small businesses can range from $120,000 to $1.24 million.

Sometimes, stealing information is more valuable to hackers than asking for money, so that they can sell off the data to the highest bidder. This is why protecting your sensitive data is vital to a strong cybersecurity posture. Losing private information will hurt your relationship with clients and your brand image. It also costs an average of $180 per record of Personal Identifiable Information breached, creating further pressure to ensure that your business is following best practices.

The best way to combat cyber threats is to invest in cybersecurity. Budgeting for cyber is a necessary part of modern business. 50% of business leaders said they expect their cybersecurity budget to increase. This is no surprise with the rapid uptick in attacks in recent years. It is widely recommended that businesses devote at least 15-20% of their IT budget strictly for cybersecurity.

Clearly, cybercrime is an expensive issue that is only getting worse. Businesses leaders need to be aware of the dangers and take steps to protect themselves as cybersecurity is not something to be ignored. Investing in cybersecurity is no longer a luxury, it is a cost of doing business.

If your business needs a comprehensive cybersecurity partner, our team of experienced professionals at Alliant Cybersecurity are here to help guide you and share best practices to ensure that your company is prepared in the event of a cyber-attack.

Learn more: www.alliantcybersecurity.com