IBM Security and Ponemon Institute published their The Cost of a Data Breach Report for 2019. The report studied 507 companies and interviewed more than 3,200 individuals. It found that:
- United States had the highest breach cost amongst countries
- Healthcare companies experienced the most expensive breaches
- Small businesses (fewer than 500 employees) were impacted most by breaches
USA Atop The List
Globally, the average total cost of a data breach was $3.92M, with the USA having the highest average cost at $8.19M/breach. Figure 1, below, shows that the Middle East, Germany and Canada trailed the US in cost of data breach.
The majority of breach costs (nearly 2/3rd) were actually indirect costs in each country. These indirect costs include investigations and communication, as well as the projected cost of customer loss resulting from turnover or diminished customer acquisition rates.
Healthcare Companies Experienced Highest Industry Losses
Healthcare companies had the highest average breach costs with $6.45M (see figure below). Financials, energy and industrial trailed, all with over $5M average breach costs.
Small Businesses Have Difficulty Recovering Financially After a Breach
The total cost for the largest organizations (more than 25,000 employees) averaged $5.11 million, which is $204 per employee. Smaller organizations (fewer than 500 employees) had an average cost of $2.74 million, or $5,480 per employee. Thus, smaller organizations have higher costs relative to their size than larger organizations, which can hamper their ability to recover financially from the incident. Many small businesses are not able to recover from a multi-million dollar loss.
In another report by Verizon, it was reported that 58% of successful breaches target small businesses due to their lack of cybersecurity. This is where a product with simple integration is a game changer.
CyberQuay’s value proposition is simple. For a tiny fraction of the cost, you can be protected against a catastrophic breach that might cripple your business financially.