Each Cyberattack Costs Large Companies $861K:Kaspersky

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By George R. Lynch

Sept. 13 — One cybersecurity incident costs large businesses approximately $861,000 on average, according to a Sept. 13 Kaspersky Lab report.

Small and medium-sized businesses pay an average of $86,500 per cybersecurity incident, the report said.

Businesses with 1,000 or more employees are considered large businesses, while businesses with less than 1,000 are considered small and medium, a Kaspersky spokeswoman told Bloomberg BNA Sept. 13.

The biggest expense for large, medium and small businesses alike is the additional internal staff wages that companies need to pay in the aftermath of a cyberattack, the report said.

The report is a reminder that, in addition to reputational harm, cyberattacks also inflict significant financial losses on companies of all sizes.

Security Spending Down

About half of all businesses believe that their information technology systems will be compromised, the report said. Despite this widespread concern, the report found that 73 percent of companies are spending less than 20 percent of their information technology (IT) budget on security.

The number of businesses that fear the fallout of a cyberattack is growing, the report found, and 75 percent of businesses expect to increase their IT security spending over the next three years, with an average increase of 14 percent.

Thirty percent of survey respondents said they have been exposed to risk due to the physical loss of mobile devices, and 10 percent of U.S. businesses admitted that it could take up to a year to discover that a data breach has occurred.

The report, “Measuring the Financial Impact of IT Security on Businesses,” is based on a 2016 Corporate IT Security Risks survey, conducted by Kaspersky Lab with international market research company B2B International Inc. It surveyed the IT security budgets, infrastructure complexity and real cost of cybersecurity incidents of over 4,000 business representatives from 25 countries.

To contact the reporter on this story: George R. Lynch in Washington at glynch@bna.com

To contact the editors responsible for this story: Donald G. Aplin at daplin@bna.com ; Jimmy H. Koo at jkoo@bna.com

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