The Increased Cost of a Cyber Attack on Small Businesses

Cybersecurity threats are rising, and small businesses are feeling the pinch more than ever. Recent data reveals a troubling trend: while larger organizations with more than 5,000 employees experienced a slight decrease in data breach costs, smaller businesses saw significant increases (IBM, 2023). In particular, organizations with fewer than 500 employees faced a 13.4% rise in the average data breach cost, jumping from USD 2.92 million to USD 3.31 million (IBM, 2023). For those with 500–1,000 employees, the increase was even steeper at 21.4%, with costs rising from USD 2.71 million to USD 3.29 million (IBM, 2023). Businesses with 1,001–5,000 employees saw a nearly 20% increase, with the average cost escalating from USD 4.06 million to USD 4.87 million (IBM, 2023).

Increasing Prices to Reduce Burden

These rising costs are not just a burden on businesses; they also impact consumers. Most organizations (57%) reported increasing prices for their services and products following a data breach, which mirrors last year's findings (IBM, 2023). The financial strain on businesses and consumers underscores the issue's severity.

Customer and Employee Personally Identifiable Information (PII)

Customers ' and employees ' PII remains the most costly and commonly compromised data. In 2023, the average cost per breached record was USD 183 for customer PII and USD 181 for employee PII (IBM, 2023). These figures highlight the high stakes businesses face in protecting sensitive information. Notably, 52% of all breaches involved customer PII, a five percentage point increase from 2022 (IBM, 2023). The compromise of employee PII also saw significant growth, increasing from 26% of all records compromised in 2021 to 40% in 2023 (IBM, 2023).

As these statistics show, data breaches' financial and reputational costs continue to grow, particularly for smaller organizations. It is more crucial than ever for businesses to invest in robust cybersecurity measures to protect against these escalating threats.

How Northern Virginia Cyber Solutions Can Help

At Northern Virginia Cyber Solutions, we understand the unique challenges that small and medium-sized businesses face in today's cybersecurity landscape. With the rising costs and frequency of cyber attacks, it is essential to have a trusted partner to safeguard your business. Our comprehensive cybersecurity services are designed to protect your critical assets, reduce the risk of data breaches, and minimize potential financial and reputational damage.

We offer tailored solutions, including advanced threat detection, robust data protection, and secure access controls, to ensure your business stays secure. Our team of experts works closely with you to assess your specific needs, implement the latest security technologies, and provide ongoing monitoring and support. By choosing Northern Virginia Cyber Solutions, you can focus on your core business operations, knowing that your digital infrastructure is protected against evolving cyber threats. Let us help you build a strong defense against cyber attacks and secure your business's future.

References

IBM. (2023). Cost of a Data Breach 2023. IBM. https://www.ibm.com/reports/data-breach