4 Proven Methods to Reduce the Costs of a Data Breach
No company wants to fall victim to a data breach. Yet sadly, it’s hard to come out unscathed in the current environment. About 83% of businesses have experienced more than one data breach. That’s why we’re here to help. Here are our 4 proven methods to reduce the costs of a data breach.
There are several ways in which a data breach can hurt business. The immediate cost of fixing the breach certainly comes first. The next factor might be the lost productivity. From there, you can add the cost of lost business, and the loss in customer trust. Don’t forget the potential legal fees associated with a breach.
According to a report by IBM Security, the cost of a data breach has increased since 2022. On average, a single breach can cost up to $4.35 million. If your company is located in the US, the cost can be up to $9.44 million.
Smaller businesses typically incur slightly lower costs. But… and it’s a big but, SMBs are often targeted and hurt more by a breach. They lack the resources larger businesses have to offset all the expenses.
It’s estimated that 60% of small businesses fail within six months of a cybersecurity attack.
Luckily businesses don’t have to accept the inevitability of a data leak. There are some tried-and-true strategies. These cybersecurity procedures can help reduce the potential for a cyberattack causing harm.
Cybersecurity Methods to Reduce the Cost of a Data Breach
Use a Hybrid Cloud Strategy
For data storage and business operations, the majority of businesses use the cloud. According to research, the cloud is the location of 45% of all data breaches. Yet not all cloud computing techniques are made equal.
Breaches that occur in a public cloud are far less expensive than those in a hybrid model. What is a hybrid cloud? It’s one that stores some data and processes in a private cloud, and some in a public cloud.
In some ways, you might be surprised to learn that employing a hybrid cloud strategy can be better than a private cloud.
Create an Incident Response Plan and Test It
An incident response (IR) plan can be crucial for businesses of any size. The IR plan simply consists of a set of guidelines. The plan is something employees can abide by should any number of cybersecurity issues take place.
For instance, in the event of ransomware, the first thing that should be done is to disconnect the device. An IR plan in place helps the process move along more quickly and effectively.
Simply by having and practicing an Incident Response plan, you can reduce the cost of a data breach. It reduces the average cost of a breach by $2.66 million.
Use a Zero-Trust Security Strategy
Zero trust is a group of security protocols that work together to strengthen a network. A handful of these protocols are:
- Multi-factor authentication
- Admin controls
- Application safe-listing
- User authentication
Over 79% of critical infrastructure businesses have yet to adopt zero trust. Doing so can greatly decrease the cost of a data breach. Companies that don’t use a zero-trust strategy end up paying an extra $1 million for each data breach.
Employ Security AI & Automation Tools
When you use the appropriate security measures, it can significantly reduce the expense associated with a data breach. The biggest “savings” come from using security AI and automation tools.
In most examples, when using security AI and automation, reduces the cost by 65.2% as a result. Advanced threat protection (ATP) is one of these types of solutions. These include applications that look for threats and automate the reactions.
What You Can Do to Start Increasing Your Cyber Resilience
Several methods for reducing the cost of data breaches are just standard practices. One by one you can implement updates to your cybersecurity strategy.
Working with a trusted IT provider to create a roadmap can significantly improve your security position. The “low-hanging fruit” should be addressed first, then move on to long-term projects.
“Low-hanging fruit” consists of turning on multi-factor authentication. It is something that isn’t expensive and easy to implement. Also, it greatly lowers the chance of a cloud breach.
An example of a long-term project is developing an incident response strategy. After that, you would create a schedule for your team to practice the plan on a regular basis. That way, you work out the kinks.
Need Help Increasing Security & Reducing Risk
Partnering with a reliable IT partner relieves you of a lot of security-related stress. Call us right away to arrange a discussion about a cybersecurity plan.
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