{"id":98091,"date":"2024-11-26T11:45:24","date_gmt":"2024-11-26T03:45:24","guid":{"rendered":"https:\/\/version-2.com\/?p=98091"},"modified":"2024-11-22T11:47:54","modified_gmt":"2024-11-22T03:47:54","slug":"what-drives-data-breach-costs","status":"publish","type":"post","link":"https:\/\/version-2.com\/en\/2024\/11\/what-drives-data-breach-costs\/","title":{"rendered":"What Drives Data Breach Costs?"},"content":{"rendered":"
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<\/p>

What drives data breach costs?<\/b><\/p>

The worldwide cost of a data breach in 2024 averages around $4.88 million, which is a 10% increase over 2023.\u00a0 <\/span>If you are unlucky enough to be a victim of ransomware<\/a>, the cost is 10% higher, at$ 5.37 million. And if you\u2019re in the United States, the average cost almost doubles to $9.36 million.\u00a0 <\/span>What exactly are you spending all this money on?\u00a0 <\/span>Let\u2019s dive deeper into the costs of a data breach.<\/p>

Where does it all go?<\/b><\/p>

According to IBM<\/a>, there are four key categories to spend money in post-breach: \u00a0<\/span><\/p>

Detection and Escalation<\/b><\/p>

Detection is about finding the breach (and determining the extent of it) as fast and ideally as early as possible.\u00a0 <\/span>When a data breach is detected, the first priority is to figure out what has been compromised, how far the hackers got in, and how to plug the hole.\u00a0 <\/span>Costs associated with this might include a new messaging system \u2013 communicating via your existing e-mail or instant messenger might tip the hackers off as to your plans, which will prevent you from being able to contain the damage.\u00a0 <\/span>You might need more robust network monitoring, firewalls, SIEM (security information and event management) systems, and more.\u00a0<\/span><\/p>

Time is of the essence during the detection phase \u2013 the longer it takes, the more expensive it will be to unwind.\u00a0 <\/span>It takes around 194 days<\/a> to find a data breach, with an additional 64 days to contain it \u2013 that\u2019s a lot of time for a bad actor to have access to your systems.\u00a0 <\/span>The longer detection takes, the more expensive the breach is<\/a>. \u00a0<\/span><\/p>

Escalation begins the process of notifying internal stakeholders.\u00a0 <\/span>IT and any Security personnel are often the first to know.\u00a0 <\/span>It\u2019s crucial to loop in customer-facing organizations like support and sales early in the process, as they are the first points of contact your customers will often make when reaching out to you.\u00a0 <\/span>You will want to have a statement crafted that can be sent out, which will likely involve marketing.\u00a0<\/span><\/p>

Notification<\/b><\/p>

Moving on from internally, next will be letting the world know \u2013 this will include regulators, customers, and the general public. Hiring a\u00a0 <\/span>PR firm to help craft a statement is a smart move, and you\u2019ll surely want to retain legal counsel to make sure you don\u2019t make your situation any worse.\u00a0 <\/span>Doing this in a timely manner is crucial so that you don\u2019t run afoul of any regulations<\/a>.\u00a0 <\/span>There are several laws in different countries that have time-bound requirements; for instance, GDPR<\/a> requires notification within 72 hours of discovering a data breach.\u00a0 <\/span>In this stage your customers will have questions \u2013 probably a lot of questions \u2013 and it will be all hands on deck, not just for sales and support, but product and marketing as well.\u00a0 <\/span>Maintaining accurate, clear, and consistent communication with customers, the press, and regulators is of paramount importance.<\/p>

Post-Breach Response<\/b><\/p>

This is a crucial, make-it-or-break-it time for companies; after the initial announcement, there is likely a great deal of attention laser-focused on you, your business, your customers, and any other person or organization in your orbit. A good post-breach response will help restore lost confidence, and hopefully minimize the impact of lost business. \u00a0<\/span><\/p>

An excellent example of a post-breach response comes from Okta.<\/a>\u00a0 <\/span>When they were breached in 2023, although only less than 150 customers were impacted, their communication was transparent, forthright, and thoroughly detailed what they found and their next steps<\/a>. \u00a0<\/span><\/p>

Lost Business Cost<\/b><\/p>

Inevitably, when you suffer a breach, you will lose some business.\u00a0 <\/span>Some customers will leave, some prospects will go dark, and some current customers will reduce the amount they spend.\u00a0 <\/span>While that\u2019s inevitable, you will also suffer the loss of future plans \u2013 your roadmap, feature development, and all other work will grind to a halt as the data breach becomes a black hole that sucks all activity in, and everyone focuses on the other three areas we\u2019ve covered.\u00a0 <\/span>Your UX team will become QA testers; your marketers will become support reps; and your customers will be clamoring for answers you may not have yet.\u00a0 <\/span>It will take a long time, with a lot of intense effort, to return to some semblance of normal.<\/p>

Each of these efforts alone can run up costs in the millions of dollars; combined altogether it\u2019s easy to see why breaches like Target<\/a> run into the hundreds of millions of dollars.\u00a0 <\/span>Given that these costs are projected to continue to skyrocket, and you probably have many other things to spend $10 million dollars on, it\u2019s worth it to invest in training and security tools to keep your organization safe.<\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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About Portnox<\/strong>
Portnox provides simple-to-deploy, operate and maintain network access control, security and visibility solutions. Portnox software can be deployed on-premises, as a cloud-delivered service, or in hybrid mode. It is agentless and vendor-agnostic, allowing organizations to maximize their existing network and cybersecurity investments. Hundreds of enterprises around the world rely on Portnox for network visibility, cybersecurity policy enforcement and regulatory compliance. The company has been recognized for its innovations by Info Security Products Guide, Cyber Security Excellence Awards, IoT Innovator Awards, Computing Security Awards, Best of Interop ITX and Cyber Defense Magazine. Portnox has offices in the U.S., Europe and Asia. For information visit http:\/\/www.portnox.com<\/a>, and follow us on Twitter and LinkedIn.\u3002<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\t\t

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About Version 2 Digital<\/h3>

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.\n

\nThrough an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.<\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

What drives data breach costs? 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