ITS Team Security warns small businesses that failing to prevent a cyber attack can be catastrophic
The protection and peace of mind afforded to a business by a competent IT management service partner is much more affordable than the alternative. Keeping a business operational and safe is only a fraction of the cost required to repair the damage done by a successful cyber-attack. Since modern companies are data-driven, a data breach can devastate a small company or strangle a new business.
What is the expense of a successful security breach to a small business?
Regardless of what size of a business is, a cyber-attack imposes budgetary pain. However, the pain of a cybersecurity incursion upon a small business will be felt differently than an assault on a large company. The scale of size may soften the blow on the large company even though the actual cost to repair, replace, and restore may be many times greater than the expense to the smaller business. The damage inflicted by a breach can carve a significant slice out of a small business’s bottom line. The intensity and longevity of that pain depend on the extent of the intrusion, the IT management solutions in place to deal with the disaster, and other less noticeable impact areas.
A recent study analyzed the associated costs of a successful cyber-attack. The average security breach at a small company or business costs about $38,000. This figure includes the costs of downtime, lost business opportunities, and the services that the targeted company will need to bring on board to resolve the cybersecurity breach. On average, small businesses pay about $10,000 in professional services including hiring IT security and risk management consulting, legal counsel, accountants, auditors, and public-relations specialists.
This broad assessment clearly shows the effects of a cyber-attack reaching into areas that are not typically associated with a repair and recovery effort. Network repair and data recovery are more easily addressed than the less tangible matters of public relations. Data recovery is one thing; reputation repair is another.
The tangential but significant impacts on a small business break along the following lines
- Downtime costs for small businesses are around $23,000.
- Lost business opportunities calculate to about $5,000.
- Many victims will pay approximately $8,000 to make sure such an incident never occurs again. These efforts involve investing in new staff, cybersecurity training for current employees and upgrading the IT infrastructure.
According to estimates, the direct financial damage inflicted on a large business is even more costly. The average cybersecurity incursion costs about $825,000 which is many times more than that of a small business. Economies of scale come into play when factoring the overall pain inflicted on a company, but size in and of itself does not make a business impervious to the cyber carnage resulting from an attack.
What companies are required to make known about a cyber incident shapes much of the popular conception regarding the cost and impact of security breaches? Some examples of security breaches that make it onto a public venue and into the public eye involve payment data, personal health information (PHI), and the theft of personally identifiable information (PII). Costs related to customer notification, credit monitoring, and the possibility of legal judgments or regulatory penalties are lower profile, but they are still very real. In response to breaches in these areas, there is movement in the direction of calculating the “cost per record” for consumer data breaches.
Infrequently brought to public attention are instances of espionage, data destruction, theft of intellectual property (IP), attacks on core operations, or attempts to neutralize critical infrastructure. These types of attacks can inflict a more traumatic injury and lead to additional costs that are more complex to calculate.
Given the impact and growing frequency of cybersecurity breaches across many fronts, business owners and executives must consider both the direct costs to their businesses and the number of the less obvious costs associated with a cybersecurity breach.
Preventing a destructive cyber event is much less expensive and time-consuming than recovering from one. Having a competent IT management solution in place and operational 24/7 is mandatory for any business in the 21st century.
For more information about cybersecurity, managed IT services, HIPPA and DOD cyber compliance, network repair, cloud services, data recovery, email compliance, VoIP solutions, IT business consulting, business continuity plans, and peace of mind, visit the ITS Team Security website at or contact the team by phone at (858) 538-4729