The True Cost of a Data Breach

The True Cost of a Data Breach

According to InformationWeek, in 2013 there were 617 data breaches that cost upwards of five million USD – and that does not include the $10-million Target breach. There is no argument that any data breach, large or small, is financially devastating, which is why it is so surprising that so many smaller and mid-size businesses believe that they are immune to the risk. Some business owners believe they are too small to be a target, while others assume an annual purchase of an antivirus utility will protect them from harm.

Unfortunately, more and more often, smaller businesses are the favoured target of cybercriminals, and every business needs to take a much more proactive stance toward data security. The costs of a breach are measured far beyond initial financial losses. A significant number of businesses in Canada are at risk. As many as 56 percent  of Canadian businesses have experienced a data breach; according to IBM, there has been a 38-percent increase in data breaches. 

Time, Money, and Inconvenience: The Data Breach Cost to Your Customer

When your organization suffers a data breach, you’re not the only one who has to pay for it. Often, consumers whose data is stolen become the victims of identity theft and incur hundreds to thousands of dollars of expenses themselves. And if the loss includes personal information, such as medical records or legal data, the impact on your customer can be even bigger. When the costs from breaches are calculated, Authentify estimates that $140 billion is passed on to consumers.

The True Cost of a Data Breach May Be Immeasurable

While the consequences of a data breach can be measured and calculated to determine the financial impact to an organization, determining the true cost is far from simple. Consider the loss of trust experienced by a client whose information is stolen because of their choice to do business with you. For some, this breach of trust is irreparable. Client and customer retention become much more difficult when you’ve put your customers’ data in harm’s way.

Every Canada Business Leader Has an Obligation to Deliver Better Data Security

With data breaches seemingly out of control in Canada, and recent amendments to PIPEDA, every business leader must take a hard look at how proactively their organization is addressing data security. In order to deliver peace of mind to your clients and customers, you must be able to assure them that you are employing best practices to ensure your data – and their data – is secure. Start by taking the following steps:

  1. Develop policies and procedures that control who can access what data.
  2. Audit regularly to ensure that policies are being implemented and followed correctly.
  3. Don’t forget that many breaches are caused by either careless or malicious acts from within your own company. Hire carefully and train well.
  4. Establish comprehensive data recovery and off-site backup plans to protect your data, regardless of the type of attack.
  5. Monitor and control access to data at all times.
  6. Implement proactive measures that detect potential threats and halt them before they become a problem.
  7. Don’t forget to include across-the-board mobile device management.
  8. Keep software and platforms up-to-date.

Data security is more than just a good business practice. It is an absolute imperative. The ITeam is dedicated to helping organizations in the Calgary area secure their data and provide peace of mind to their customers through a modernized approach to information technology. If you’re ready to move to a more cost-effective, efficient, and reliable approach that aligns your business IT support with your desire to achieve growth, as well as be responsive and globally competitive, we can help. The ITeam is Calgary’s number one resource for Managed IT Support and On Demand IT services. To learn more, contact us today.

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