Cyber Security Cost vs. Average Cost of a Data Breach

SMBs represent more than 40% of the total cyberattack target landscape. Yet, very few small businesses have an appropriate cyber security budget. Unless their business is a tech company, small to midsized business owners are so focused on driving their business’ day-to-day operations that they fail to focus enough on their cyber security risks until they are attacked. They are then blindsided and must scramble to address the threat after the fact. Unfortunately, the average cost of an SMB data breach is more than $200,000, and as a result, many companies go bankrupt from a deadly cyberattack.

To make matters worse, the increase in ransomware attacks has made it difficult to calculate the costs of an attack as they relate to how much ransom the hackers request and how long the businesses take to pay ransoms. As a result, the FBI warns, “The best insurance against a cyber attack is never to have one.”

The Average Cost of a Data Breach

Since the onset of the pandemic, cybercrimes have increased by more than 400%, and budget or not, the new hybrid remote access work environment has forced SMBs to take a closer look at new and more effective ways to lock down their business networks. Small businesses must now realize that inadequate cyber security makes them the “low hanging fruit” for hackers.

All businesses store private data. Employee data, proprietary data, accounting, tax and bank documents are all potentially at risk. Also, data related to the other companies with whom you do business could be compromised. Unless appropriate layers of security are in place, cybercriminals will recognize an SMB’s vulnerabilities and plan their attacks accordingly. Additionally, any device that is part of your wireless network (cell phones, laptops, tablets, etc.) presents a possible entry point for cybercriminals. At a time when our economy is struggling to stabilize itself, cyberattacks have a significant impact on economic recovery.

With employees working from home, at airports, train stations and anywhere they can get WiFi signals and log on to your network, every connected device they use presents an endpoint target for cybercriminals. Hackers count on users ignoring security protocols and using unsecured public WiFi connections. Unsecured public networks constitute a significant source of SMB data breaches. Can your small to midsized company afford a breach of its private data?

Case Study

A small, multi-office medical practice in Long Island, N.Y., grew from a one-office, family practice to a six-office general practice. The growth of the practice far exceeded the expectations of the founding physicians. However, as the company grew, the medical partners did not address the complementary change in their need for superior cyber security.

Next, the pandemic hit, and many office visits were replaced by televisits, and most of the administrative staff was working from home. The doctors spent much of their time ensuring that their patients received the care they needed and how best to serve them in the current public health environment. Administrative staffers were focused on logging on to the network and getting the company data they needed to continue working. Nobody considered the vast new array of cyber threats posed by the expanded remote access workforce. The office manager was not very comfortable working from home. She had many distractions around the house with grade school children attending classes online and other issues not present when working in the practice’s main office.

One day, distracted by a delivery at her front door, the office manager impulsively clicked on an attachment to an email that she mistakenly viewed as being from a trusted source. Within the hour, the medical practice’s network was attacked by malware. By the time anyone noticed, the attack had spread systemwide. By the following morning, every employee was experiencing frozen computers, blocked logins and numerous alerts from the limited cyber security that had in place.

IT professionals were called in by the end of the next day. Unfortunately, even though the experts could isolate and secure the threat, it cost the practice significant time and money to add sufficient layers of security to protect against future attacks.

Cyber Security for Companies

Do not wait for a cyberattack to address your network's cyber defenses. Businesses are constantly adding new connected devices, and each one is a potentially vulnerable endpoint that must be locked down before an attack. Every device you add to your business network widens the landscape for hackers to attack. Therefore, it is essential to hire cyber security experts to provide a thorough cyber risk analysis of your entire system and network to ensure you have appropriate protections in place.

DIGIGUARD Cyber Security Knows How to Best Protect Your Business Data

DIGIGUARD, specializing in preventing cyber threats, has a wide array of solutions to protect against cybercrimes. It works with small and midsized businesses to establish cyber security best practices to ensure their confidential data has the best protection possible and that all network users are on the same page. Many companies bound by strict compliance and privacy laws such as law firms, medical practices and financial service institutions cannot afford data breaches of any kind. For any business, cyberattacks can have devastating consequences. DIGIGUARD can assess your cyber risks and work with you to ensure you have the best protection solution for your business.

Call DIGIGUARD CYBER SECURITY at 833-33-CYBER (833-332-9237) and visit to increase your level of cyber security and protect your company’s and clients’ data before a costly cyberattack.