Costs of a Data Breach

Small- and medium-sized businesses accounted for half of all of the data breaches in 2019, so it’s a threat that has become all too real for small business owners. The looming threat to small business owners is starting to be recognized, but many owners don’t realize the true cost that would be associated with this threat if they were to fall victim to a data breach. So long as it is possible for cybercriminals to benefit from consumer and business data that has been illicitly placed on the dark web, hackers will continue to target small- and medium-sized organizations.

Cybersecurity researchers have found that in 2019 the cost of a data breach increased significantly to $120,000 per incident for small- and medium-sized businesses. That dollar amount is a staggering number for many businesses that are just making ends meet. But the costs don’t stop there…

The financial effects of a data breach are felt before the breach is detected and well after it has been controlled. Usually, small businesses will have an expenditure for IT security to prevent something like this. Then, when a hacker does infiltrate the system, the costs really start adding up. Typically, a company will pay about two-thirds of the total cost of a breach in the first year, 22% in the second year, and the remaining, quantifiable costs in the third year.

The costs of a data breach are not just a one-time hit to the victim firm’s expenses, and the costs are not necessarily calculatable because a data breach can and will adversely affect future sales. When a customer learns that a company with which they have done or wanted to do business has suffered a data breach, they will likely not do business with that company again as they cannot trust the breached firm to handle their data properly.

The National Cyber Security Alliance found that 60% of small- and medium-sized businesses close their doors within six months as a direct result of a data breach. Don’t let that be your company. The best thing that you can do, as a business owner, is to be prepared for this type of incident.

LibertyID is the leader in identity theft restoration, having restored the identities of tens of thousands of individuals without fail. If you retain personal information on your customers, now it is the time to get data breach planning and a response program in place with our LibertyID for Small Business data breach preparation program. With LibertyID Enterprise you can now add value to existing products, services, or relationships by covering your customers, employees, or members with LibertyID’s fully managed identity theft restoration service—at a fraction of our retail price—with no enrollment and no file sharing. We have no direct communication with your group members–until they need us.

Call us now for a no obligation proposal at 844-411-LIBERTY (844-411-5423).