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Top 5 cyber risks for businesses - SureID Blog
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SureID Blog / Industry News  / Top 5 cyber risks for businesses
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Top 5 cyber risks for businesses

One of the biggest tasks for business owners is to mitigate any excess costs that’s cutting their bottom line. In the 21st century, that’s harder to do than ever before, and that’s all thanks to cyber attacks.

Cyber risks come in all forms, and if you’re a business owner, you have to protect against all of them. That means identity proofing everyone that’s involved in your business, and giving them the proper clearance that’s in accordance with their responsibilities.

Insurance company Travelers recently wrote a fascinating piece about what are the biggest risks companies face against cyber attacks. Although their numbers and examples are too big for a smaller business to relate to, that doesn’t mean small companies shouldn’t take notice, especially since nearly half of all cyber attacks happen to them.

You should read the rest of the Travelers blog, but here were some of their notable examples.

Human Error

Hypothetically speaking, let’s say you’re a prominent employee at an employee benefits company. You just lost your work cell phone or work laptop that you used to access your company’s unsecured database that had more than 15,000 clients information, including social security numbers and health records.

On average, you just cost your company $3.4 million

  • Breakdown of the largest costs
    • Average cost post-breach – $1,640,000
    • Average cost for legal defense – $698,000
    • Average legal settlement costs – $558,000

Hacker

If you worked at a large retail business that was just hacked, it could cost your company more than $5.9 million. The dollars start to stack up when you realize you have to spend money to notify all your customers that their information is compromised. Your company would also have the ongoing costs of providing continual credit monitoring, and not to mention the potential class action lawsuits.

  • Breakdown of the largest costs
    • Loss of business costs – $3,720,000
    • Average cost post-breach – $1,640,000
    • Average cost to notify customers – $560,000

These numbers are big, but they’re also avoidable. Take your data seriously, and use solutions like vendor risk management to make sure you’re not leaving any vulnerable spots for threats.

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