In 2020, the FBI reported a 300% increase in reported cybercrimes. With the rapid growth of cyberattacks, you need to do everything you can to prevent security leaks.
Regardless of what business you’re in, keeping your data secure is important. In any industry, data is your lifeline to financial health. The financial health of your business relies on your security strategy, which ultimately keeps your data safe. Continue reading to learn more about why ignoring security will cost you more in the long run.
Downtime Is Pricey — Especially for SMBs
Downtime is never a good thing because it can cost businesses thousands of dollars an hour or even by the minute. Your business needs a security plan to help minimize the risk of downtime and data loss from cyberattacks.
Research findings indicate that 40% of small businesses experienced eight or more hours of downtime due to a cyber breach. Also, this downtime accounts for an average of $1.56 million in losses. If your business experienced downtime from a cyber breach, how much would it cost you?
Security Breaches Can Run You Out of Business
One of the possible consequences of a cybersecurity attack is that it can force you to close your doors. Small Business Cyber Security Statistics published in late 2020 report that 60% of small businesses that are victims of a cyberattack go out of business within six months.
Compliance Issues Create Financial Penalties That Add Up
If your business has to maintain compliance with regulatory entities such as HIPAA or PA-DSS, a security breach can significantly hurt your bottom line. Should you fall subject to an attack that compromises protected customer information, you will have to worry about two major categories of financial impact — recovery and penalties.
Compromised data means that you will not only be hit with recovery costs but also be subject to financial penalties from the regulatory entities. The Athens Orthopedic Clinic, for example, had to pay a $1.5 million financial penalty for non-compliance with HIPAA.
Employee Training Is Less Costly Than a Cyberattack
Experts say that 90% of breaches are caused by human error. For these reasons and more, ignoring security in your business can be a costly mistake. If you know you have some cybersecurity gaps, look for a partner who can help you implement a strong defense against cyber threats. A proactive approach to security will certainly keep you more financially healthy in the long run.