4 Proven Ways to Mitigate the Costs of a Data Breach

Free Crop man paying with American dollars Stock Photo

No business in Boca Raton wants to suffer a data breach. Unfortunately, in today’s environment, it’s difficult to completely avoid them. According to the IBM Security 2022 Cost of a Data Breach Report, approximately 83% of organizations have experienced more than one data breach.

These data breaches hurt businesses in many ways. First, there is the immediate cost of remediating the breach. Then, there are the lost productivity costs. Lost business and lost customer trust are added on top of that. A business could also have extensive legal costs associated with a breach.

The cost of a data breach climbed again in 2022, according to IBM Security’s report. The global cost of one breach is now $4.35 million, up 2.6% from last year. In the U.S., the cost rises to $9.44 million, while in Canada, the average data breach costs companies $5.64 million.

Costs for smaller companies tend to be a little lower. But breaches are often more devastating to SMBs. They don’t have the same resources that larger companies do to offset all those costs.

It’s estimated that 60% of small companies go out of business within six months of a cybersecurity breach.

Companies in Boca Raton don’t need to resign themselves to the impending doom of a data breach. There are some proven tactics they can take to mitigate the costs. These cybersecurity practices can limit the damage of a cyberattack.

All these findings come from the IBM Security report, which provides hard facts on the benefits of bolstering your cybersecurity strategy.

Cybersecurity Tactics to Reduce the Impact of a Breach

Use a Hybrid Cloud Approach

Most organizations use the cloud for data storage and business processes. Researchers found that 45% of all data breaches happen in the cloud. But all cloud strategies are not created equally.

Breaches in the public cloud cost significantly more than those in a hybrid cloud. What is a hybrid cloud? It means that some data and processes are in a public cloud, and some are in a private cloud environment.

What some may find surprising is that using a hybrid cloud approach was also better than a private cloud.

Cost of a Data Breach Report
Graph from: IBM Security/Ponemon Institute 2022 Cost of a Data Breach Report

Put in Place an Incident Response Plan & Practice It

Creating an incident response (IR) plan is not just for large enterprises. Even small businesses in Boca Raton can benefit from having an IR plan. The IR plan is simply a set of instructions for employees to follow should any number of cybersecurity incidents occur.

For example, in the case of ransomware, the first step should be to disconnect the infected device. IR plans improve the speed and effectiveness of a response in the face of a security crisis.

Having a practiced incident response plan can significantly reduce the cost of a data breach. It can lower it by an average of $2.66 million per incident. This can make a significant difference for small businesses that may not have the same resources as larger companies to absorb the costs of a data breach.

Adopt a Zero Trust Security Approach

Zero trust is a collection of security protocols that work together to fortify a network. An example of a few of these are:

  • Multi-factor authentication
  • Application safelisting
  • Contextual user authentication

Approximately 79% of critical infrastructure organizations haven’t adopted zero trust. Doing so can significantly reduce data breach costs. Organizations that don’t deploy zero trust tactics pay about $1 million more per data breach.

Use Tools with Security AI & Automation

Using the right security tools can make a big difference in the cost incurred during a data breach. Using tools that deploy security AI and automation brought the biggest cost savings.

Data breach expense lowered by 65.2% thanks to security AI and automation solutions. These types of solutions include tools like advanced threat protection (ATP). They can also include applications that hunt out threats and automate the response.

How to Get Started Improving Your Cyber Resilience

Lowering data breach costs involves implementing best practices. You can start by taking them one at a time and rolling out upgrades to your cybersecurity strategy. Working with a trusted IT provider, put together a roadmap. Address the “low-hanging fruit” first, then move on to longer-term projects.

For example, “low-hanging fruit” could be putting multi-factor authentication in place. It’s a low-cost and easy-to-implement solution that significantly reduces the risk of a cloud breach.

A longer-term project might be creating an incident response plan. Once you have a plan, set up a schedule to have your team drill on the plan regularly. During those drills, you can work out any kinks.

Implementing best practices like these can help small businesses in Boca Raton prevent data breaches or mitigate their impact if they occur. By working with a trusted IT provider and creating a roadmap for upgrades, businesses can make steady progress towards a more secure cybersecurity strategy.

Need Help Improving Your Security & Reducing Risk?

Working with a trusted IT partner takes a lot of the security burden off your shoulders. Give us a call today to schedule a chat about a cybersecurity roadmap.

Featured Image Credit

This Article has been Republished with Permission from The Technology Press.