Average Cost of Data Breach for Business

According to Statista, in 2023 the average cost of a data breach for UK businesses was £1,100. These were largely the result of fraudulent emails or other messages, known as phishing attacks, which are responsible for some 80% of all UK security breaches.

A data breach carries much more than an immediate financial cost, though. Your business may also lose some income during the time it takes you to recover from the attack. If cyber criminals steal client or customer data, you’ll likely suffer reputational damages too, and it’s hard to put a price on this.

It’s for this reason that any data breach, no matter how small, has the potential to utterly sink your business.

A data breach carries much more than an immediate financial cost

No Business is Safe From Cyber Crime

The Statista figures show that large businesses pay a higher price for data breaches than smaller businesses. But it’s a mistake to think that your business is safe from cyber crime if you’re “only” a small business.

One study found that, when it comes to data breaches, criminals are three times more likely to target smaller businesses than larger businesses. As a result of this, BIBA estimates that up to 96% of all cyber-attacks are aimed at small to medium businesses.

If you run a small business, you might think that cyber criminals have very little to gain in targeting you. Your turnover’s modest, your client list is small. Why would cyber criminals bother going after you when they could make significant gains through targeting a rich multinational instead?

Why Do Cyber Criminals Target Small Businesses?

The truth is that cyber criminals target small businesses precisely because they’re small. Small businesses may not take the necessary steps to protect their data precisely becausethey don’t think it’s worth much. Or they will likely lack the resources to train their staff to understand the risks of phishing and other cyberattacks.

Finally, very few small businesses will have dedicated data breach response procedures in place. This means that any breaches are much more likely to be successful.

Common Sense is Your Finest Weapon Against Data Breaches

When it comes to data breaches, prevention is better than a cure. Above we mentioned how around 80% of data breaches are the result of phishing attacks. This involves criminals sending a fake message, usually via email, which will often direct recipients to a fraudulent website.

This website will encourage the recipient to enter certain sensitive information, such as logins and passwords. Doing so could give criminals direct access to your IT systems, from which they can either steal data directly, or else use their access to mount a much more devastating cyberattack.

Common sense is your best defence against phishing attacks. Take the time to educate yourself, and your staff, on some of the telltale signs of a fraudulent email. Here’s a good government resource to get you started.

Cyber Insurance – An Essential Line of Defence Against Data Breaches

Unfortunately, cyber criminals are getting smarter and more sophisticated all the time. They’re now capable of creating false messages that seem so convincing and authentic that they may trick even the most seasoned of cyber security experts.

A data breach isn’t inevitable. But should your business ever fall victim to cybercrime, dedicated cyber insurance can act as an essential safety net.

This will cover you and your business for any losses you might make as a result of hacking, cyber-attacks, data breaches, viruses, and other online threats. This can include ongoing monitoring services to help you ensure that none of your staff, clients, or customers fall foul to identity theft or credit fraud as a result of the breach.

So while it may not prevent breaches from occurring in the first place, cyber cover can at least ensure that your business will be able to bounce back.

Get more information about how cyber insurance works, what it covers, and to get a free no-obligation quote in minutes.

If you have any questions or would like to discuss your options, please contact our Tapoly team at info@tapoly.com, call our help line on +44(0)2078460108 or try our chat on our website.