The cost of a data breach

If you use the internet, computers or mobile devices, your computer is at risk for a data breach, and you need cyber liability coverage. Simple as that.

What’s at risk? Beyond a damaged brand, it could be nearly $674,000 -the average cost of a single cyber breach in 2015 according to NetDiligence’s latest cyber/data breach claims study. Ultimately, the cost of each lost record per this study came out to an average of $964. That’s a lot of money – nearly $10,000 even if you only had ten records compromised!

Of particular mention is the fact that cyber criminals are not fixated on only large organizations – smaller companies reviewed in the study accounted for the most claims. Those with revenue less than $50 million accounted for 28 percent of reported incidents.  Symantec, a sponsor of the report, theorized that this happens because “These organizations tend to be operating with the tightest budget for security and staff, they have business connections to larger companies through partnerships and products, and the data they are storing and transmitting is still very useful to nefarious individuals.”

Beyond company size, cyber criminals don’t care what industry you occupy either. They simply want data. And if you have data, you have risk. NetDiligence’s research revealed that the loss of personal identifiable information made up the most claims (45 percent). Nearly a third involved hackers, and an earlier MJ blog revealed how your own employees add to this risk (why education and training is so important). Your exposures only escalate with human error, remote employees, a malicious former worker intent on causing damage, a lost mobile device, risky technology at a vendor or supplier, infected downloads or USB devices, weak passwords, open wi-fi networks, etc.

Yes, this list is overwhelming. Yes, the costs of a data breach aren’t getting cheaper. This is the new normal in business.

MJ is ready to help with a comprehensive cyber risk management approach, including both proactive security measures and cyber liability risk transfer products. If you’re ready to get started, just click here.  If not, keep that checkbook handy; an expensive data breach claim could be waiting.