As we begin the new year vigilant about keeping businesses protected from cyber threats on the rise, it helps to reflect on what happened in the world of cyber security in 2019. Here are some of the most alarming statistics of the past year.
A Cyber Readiness Report released by Hiscox relieved that 73% of businesses rank as cyber novices and just 27% of businesses are prepared to take on cyber threats. Only 11% of businesses were considered cyber experts. Scary statistics considering the rapid rate at which cyber attacks are growing.
The rate of breaches is increasing at about 22.5% per year. Between 2018 and 2023, it is expected that over 146 billion records will be exposed through data breaches and can likely include your sensitive customer or company information.
Cyber criminals do not discriminate or only target large organizations. A 2017 Data Breach Investigation Report performed by Verizon revealed that same year that 61% of reported data breach victims were businesses with less than 1,000 employees.
The costs of data breaches continue to rise, with an increase of 6% in 2018 over 2017. The average global cost for a breach is 3.86 million and for American companies, the average is a whopping 7.91 million. What is involved in the cost of a data breach? Public relation costs, opportunity costs, breach relief expenses, legal and mitigation costs.
Accidental data leaks from employees or deliberate leaks from unethical ones are a major concern. In a report by Varonis Data Lab, titled the 2018 Global Data Risk Report, highlighted that 88% of organizations with over a million data folders have more than 100,000 folders open for any of their employees to access.
Your business could be experiencing a data breach at this exact moment and not know it. It was reported in the 2018 Data Breach Investigation Report by Verizon that on average it took months or even longer for 68% of businesses to discover they had experienced a breach.
If your business has experienced a sensitive data breach in the past, 64% of customers will be unlikely to do business with you. It can be incredibly difficult to rebuild your organization’s reputation and regain trust from customers once you have suffered from a data breach.
A study done by Ponemon in 2018 revealed that when businesses lose 1% or less of their customers as a result of a data breach, they can stand to lose on average $2.8 million. If they lost 4% or more of their customers, that number climbs to $6 million. Customers want to know that they can trust you with their sensitive information and if they don’t feel that they can trust you with their information, many will not trust you with their business.
The Global Data Risk Report by Varonis revealed that a shocking 65% of organizations have over 500 users with passwords that are not set to ever expire. Just think about how long some of these employees have gone without ever changing their password. This type of oversight enables poor security habits.
A whopping 92% of malware infections as reported via the 2018 Verizon Data Breach Investigations Report were a result of phishing emails. As pretty much every employee has access to email, it is essential that your organization deliver effective security training so that staff can identify and avoid risks.
While these statistics are alarming, there is no avoiding that businesses must invest in a solid cyber security system. After all, a cyber attack will only be effective if your organization is not protected or prepared to thwart a breach. By working with MBC, your business can have the peace of mind it needs knowing that a team of industry experts is monitoring, protecting and implementing the right cyber tools to keep your business secure.
To learn more about the risks your business faces and how we can keep you protected in 2020 and beyond, get a free assessment today.