Security breaches cost businesses $US551,000 each: Kaspersky Labs

Security breaches cost businesses $US551,000 each: Kaspersky Labs

New report shows enterprise spends an average of $US551,000 to recover from security breaches

Security breaches cost enterprise an average of $US551,000, according to a report released by Kaspersky Labs.

The worldwide survey of 5500 companies also found SMBs are forced to pay $US38,000 on average in the aftermath of a cyber-attack.

Kaspersky Lab head of market intelligence, Brian Burke, said the industry had not seen too many reports on the consequences of IT security breaches, estimating a loss in real money.

“It is hard to come up with a reliable method of producing an average, but we understood that we had to do it, to bridge the theory of the corporate threat landscape with business practice. As a result, we have a list of corporate threats that caused the most significant damage – the ones we believe businesses should pay the utmost attention to,” he said.

According to the report, the most expensive types of security breaches are employee fraud, cyber-espionage, network intrusion and the failure of third party suppliers.

As part of the study, Kaspersky Labs has released a list of the average bill for a breached enterprise.

  • Professional services (IT, risk management, lawyers): up to $US84,000 with a probability of 88 per cent
  • Lost business opportunities: up to $US203,000 at 29 per cent
  • Downtime: up to $US1.4 million, 30 per cent
  • Total average: $US551,000
  • Indirect spend: up to $US69,000
  • Including reputation damage: up to $US204,750

Kaspersky said nine out of ten companies that took part in the survey reported at least one security incident. However, not all these incidents were serious and/or lead to the loss of sensitive data.

The security firm said a serious security breach is most frequently the result of a malware attack, phishing, leaks of data by employees and exploited vulnerable software.

In addition, the report showed large companies pay significantly more when a security breach is the result of a trusted third party failure. Other expensive types of breaches detailed include fraud by employees, cyber-espionage and network intrusion.

Kaspersky said SMBs tend to lose a significant amount of money on almost all types of breaches, paying a similar high price on recovering from acts of espionage, as well as DDoS and phishing attacks.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cybercrimesecurity breachkasperskyddoscyber-espionage

Brand Post

Show Comments