Is Cyber Security Worth the Expense? The Cost of Cyber Attacks

As our dependency upon technology has skyrocketed, so has our need for cyber security, which includes the protection and restoration of business data stored and shared on a wide variety of devices. Computers, cell phones, smart devices and tech gadgets are the playing field for data theft. Business data, including personally identifiable information, financial data, private health information, intellectual property and more, are all vulnerable to hacking. Companies can no longer depend on off-the-shelf or free virus protection software to provide enough data security.

Q: Is the Cyber Security Cost to Business Really Worth the Expense for a Small Company?

A: Short answer: yes—and usually a lot more than people expect. Think of cyber security like insurance you actually use. The cost of prevention (including network firewall security price) is almost always far less than the cost of cleaning up a breach, notifying clients, losing trust, and dealing with legal fallout. As the article shows, one incident can wipe out years of growth in a matter of moments, or put you out of business if data cannot be recovered.

Case Study: Cyber Security Cost to Business vs. The Cost of a Data Breach

The managing partner of a midsized law firm did not focus too much on cyber security. The firm had paid virus protection and a firewall on its network. It also had a part-time IT technician on board. The partner couldn’t justify spending more money on cyber security. Most of the firm’s employees had shifted to working remotely. Secure remote access was now of primary importance to the survival of the firm. Attorneys and paralegals were not only working at home, but they were now attending courtroom sessions remotely.

But the firm wasn’t adequately prepared and was caught off guard. On a Monday morning, the partner arrived at work to find his office in an uproar and dozens of messages pinging his phone. The firm’s database had been breached, files exfiltrated and data encrypted by the hacker.

Legal firms, healthcare entities and financial firms are required by law to protect their clients’ and employees’ private data. They are also required to immediately advise all their clients in the event of a data breach. Not being prepared for this attack led to the firm losing more than a third of its clients and more than 40% of gross revenue that year due to lost business, lost referrals, recovery and notification costs. They also face ongoing costs for credit monitoring and potential lawsuits from employees, network-connected business associates and clients. The firm’s ransom attack was in the hundreds of thousands, far more costly than a preemptive investment in cyber security would have been.

What Cyber Defenses are Available for a Small or Midsized Business?

Layers of cyber security are necessary to protect your business data. A cyber security expert can provide a vulnerability assessment to see what is best for your company, what type of compliance regulations are in effect for your industry sector and how your data is accessed. Some of the cyber security solutions include:

• Network Firewall Security – An basic layer of protection that can help filter out unauthorized users trying to access your network. The level of protection your business requires will determine the network firewall security price.
• Malware Protection – Malware is one of the most popular methods employed by hackers to breach private data. It is malicious software embedded in text messages and emails. Defending against malware is a business imperative.
• Ransomware Protection – Ransomware detection, prevention and employee education is a top priority. Imagine the horror of logging on to your network only to find your data is encrypted, kidnapped and being held for ransom.
• Insider Threat Protection – Part of protecting against insider threats (accidental or malicious) begins with educating employees about your cyber security protocols. In some instances, internal threats are intentional criminal acts by employees. However, most insider threats are the result of carelessness or a lack of basic knowledge of personal and business cyber security measures. Cyber security experts can get all of your workforce on the same page for contributing to overall network and data security.
• Virtual Private Networks – Virtual Private Networks or VPNs are powerful security tools that provide you with your own private “network tunnel,” affording anonymity, privacy and protection from hacking. VPNs are a very affordable layer of security and well worth adding to your cyber defenses.
• Cyber Security Monitoring – By analyzing network traffic continuously, potential threats can be recognized right away. When a data breach occurs, live security operations center (SOC) monitoring can help minimize the damage. A live human evaluates the threat alert and notifies your IT security team right away to take action.
• Employee Security Awareness Training – Employee error is the starting point in most cyber attacks. Training all employees (even C-Suite) to recognizes and avoid phishing attacks is essential. When employees understand what type of information cybercriminals are looking for, and the techniques they use to get it, they can become your best cyber defense.

Companies are required by law to protect the personal and financial data they collect and store from clients, patients and employees. If companies are attacked by ransomware, their clients have also been attacked. For healthcare, financial and legal practices, secure data is crucial to their reputations. In the worst cases, data breaches and cyberattacks put companies out of business. In any attack, it exposes companies to ongoing legal risk from clients and employees impacted by the attack, regulatory fines and added scrutiny.

Q: Why are Remote Workers Such a Big Cyber Security Risk?

A: Because every remote login is another door into your network. When employees work from home, restaurants, hotels or courtrooms, they’re often using less-secure networks and personal devices. Without tools like VPNs, monitoring, and proper training, hackers can exploit those weak points surprisingly fast—even if your office WiFi network is password-protected.

Start With a Vulnerability Assessment

A cyber security professional can help you protect company data and reduce risk.

As your business adds more devices (such as smart devices, tablets, printers, laptops, phones) your network vulnerability grows. Proactive cyber security and network security includes a wide array of solutions for small and midsized businesses to defend against cyberattacks. These cyber security experts help ensure your confidential business and financial data has the best protection possible.

Q: Where Should a Small Business Start with Cyber Security?

A: Start with a vulnerability assessment. It’s like getting a professional to walk through your business and point out unlocked doors and open windows—before someone else finds them. From there, a cyber security expert can help you prioritize protections that make sense for your size, industry, and budget, instead of overspending or guessing.

In addition to helping you defend against, respond to or recover from cyberattacks, experts can provide solutions that offer early detection of potential cyber vulnerabilities. If you are in the New York City area, give us a call to get started. Otherwise, contact a local professional before a cyberattack threatens your livelihood. We will assess your cyber vulnerability and work with you to ensure the best network and data protection solutions for your business.