Cyber Security in Austin: The Potential Cost of a Data Breach

We all know it is dangerous to be out in the open during a thunderstorm, so we take steps to get to a safe place when lightning’s about, don’t we? We certainly don’t stand around waiting to get struck down. The risk of being struck by lightning is around one in 960,000, but a recent study found more than one in four organizations faces being subject to a material data breach in the next two years. This really starts to put the spotlight on cyber security in Austin.

That same study also found the cost to organizations for each stolen or lost record was $141, with the average size overall of breaches rising nearly two percent from a year earlier. The smallest breach in the study was 2,600 records. Even at that scale, with an average cost per record of $141, the cost quickly adds up, doesn’t it?

And that is before you start accounting for potential damage to your brand, future sales, and even ability to maintain your systems. Consider further that data breaches can occur without an organization even realizing it. Over time, the siphoning out of data can have a major impact, not just on a business’s profitability but potentially on its ability to survive.

So, how will a data breach cost you? The losses due to a data breach can manifest in a number of different areas:

IT Repair Bills

Maintaining cyber security in Austin can be seen as costly but failing to maintain that security and being left with the job of restoring order and security following a breach can be even more expensive. When your systems are breached, you may not know the full extent and scale of the breach. You may have to comb through everything to guarantee that a small breach hasn’t left bigger damage. Certainly, management and policy reviews will be required, and this will just eat into what little time busy management may already not have available.

Lost Business/Customers

A data breach can have vast direct and indirect costs in terms of lost business. Customer confidence takes a hit, resulting in delayed or canceled buying decisions. Negative PR leads prospective customers to shop elsewhere.

Legal Costs

Just getting lawyers in as a precautionary move is not cheap. If legal action is taken over perceived failings on your company’s part, the costs from even a successful defense can rapidly mount. Uncertainty over the outcome of a major lawsuit can last years, even harming your ability to win investment.

Regulatory Fines

In many industries, government and oversight bodies put data protection regulations in place. Falling short of those standards can result in punitive costs.

Cost of Disruption

If your systems are disrupted by a data breach, your business may not be able to operate normally. The costs from disruption of business can rapidly grow and the knock-on effects on employee productivity may be hard even to measure.

You can see the cost of a data breach can easily and quickly become a major injury for a business. The threat is growing, driving the need for effective cyber security in Austin. At Contigo Technology, we help businesses of all sizes tackle the threats. Contact us to learn more.