Securing Your Business: The 4 Main Expenses Associated with Data Breaches

SSI is committed to cybersecurity to not only protect our data, but also our customers' data. We want you to protect your data from cyber-attacks. Welcome to the first installment of the Securing Your Business series! "By implementing controls that help prevent cybersecurity incidents, you make huge steps to avoid the potential costs of data breaches," says SSI Chief Security Officer, Austin Jabs.

Our team knows that keeping your business secure is critical. This series walks through how to strengthen your team to reduce the likelihood of data breaches, the cost of a breach, and the main causes of data breaches, and how to avoid them.

The 4 Main Expenses Associated with Data Breaches

Lost Business Cost

Businesses experiencing data breaches suffer from multiple days of being unable to operate as usual. Lost business cost accounts for all the revenue lost due to stagnant business operations, along with any other cost associated with business practices not functioning.

Detection & Escalation

Time spent with investigative teams, forensic teams, and response teams is valuable. Additionally, the time spent determining and hiring third-party teams to do these jobs can be extensive and costly.

Post breach response

After a cyber breach event, increased cybersecurity efforts, tools, and cybersecurity insurance are strongly advised. These responses are necessary to support your business operations as they return to normal and protect them from future attacks. The reality is that these can be expensive but necessary upgrades and additions to your cybersecurity system, requiring a larger budget.

Notifying Those at Risk

Thorough investigations of what customers were affected by the attack can take time and effort from your internal or third-party teams. Additionally, notifying them of the incident upon realization can be an extensive process.

Other costs associated with data breaches are the potential legal fees associated with taking legal action against cyber attackers. According to IBM’s Cost of a Data Breach Report of 2024, the average cost of a data breach in 2024 was $4.88 million dollars to rectify, which is a 10% increase from the year prior.

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The most important aspect to remember when considering securing your data is that security is a process, not a product. Implementing these tools and empowering your staff is the first step to truly securing your business.