Cyber attacks are on the rise, and businesses of all sizes are feeling the pain. A recent study by Hiscox that we collected from CNBC found that the average cost of a data breach for all-size businesses was $200K.
We’ll explore the cost of cyberattacks for businesses – both large and small as well as touch on the potential global economic impact of these attacks.
How Much Do Cyber Attacks Cost Businesses
Cyberattacks cost businesses an average of $200,000 per incident, according to a recent study from Hiscox and a report from CNBC that we gather data from.
Cyber attacks are costly because they often lead to data breaches, which can damage a company’s reputation and result in financial losses. In addition, cyber attacks can cause business interruption, leading to lost revenue and additional expenses.
As a result, businesses need to be prepared to respond to cyber-attacks quickly and effectively. They also need to invest in cybersecurity measures to help prevent attacks from happening in the first place.
How much do cyber attacks cost small businesses
So, what is the average cost of a data breach for a small business?
Cyber attacks can be costly for small businesses, with the average cost being $25,612 and these costs can include lost productivity, legal fees, and damage to reputation.
Moreover, small businesses are often less prepared to deal with cyber attacks than larger businesses. They may have fewer resources and less robust security systems. As a result, they can be more vulnerable to attack.
In facts, 60% of small businesses that experience a cyber attack are forced to close within six months. This highlights the importance of investing in cyber security, even for smaller businesses.
How Much Do Cyberattacks Cost Companies per year
Cyberattacks are becoming more and more common, as technology advances and our reliance on digital systems grows.
According to a published report from WebFx, the average cost of a cyberattack for companies around the world is $7.7 million per year. This number is only expected to grow as attacks become more sophisticated and difficult to defend against.
Many factors contribute to the high cost of cyberattacks, including recovery costs, Lost productivity, damaged reputation, and legal fees. As we become more reliant on digital systems, it is important to be aware of the dangers of cyberattacks and take steps to protect ourselves.
How much does cyber attacks cost the global economy?
A recent estimate by the head of Italian defense, security, and aerospace giant Leonardo suggests that cybercrime will cost the world 6 trillion dollars annually in 2021.
This amount covers both direct and indirect expenses connected with damage and recovery, as well as lost production and intellectual property theft.
The 6 trillion dollar figure is also likely to underestimate the true cost of cybercrime, as many attacks go unreported or undetected.
In addition, the economic damage caused by ransomware and other malicious software can be difficult to quantify.
Yet, there is no denying that cybercrime is a significant drain on the global economy. As businesses and governments become more reliant on digital infrastructure, the cost of cyberattacks is expected to rise further.
Final Thoughts
Cyberattacks are a major problem for businesses of all sizes. They can lead to data breaches, business interruption, and damage to reputation. In addition, cyberattacks can be costly, with the average cost being $200,000 per incident.
Small businesses are more vulnerable to cyber attacks because they typically have fewer resources and less sophisticated security systems. As a result, small businesses must invest in cyber security measures to assist prevent assaults from occurring in the first place.
