The Relative Cost of a Hack
The cost of silence
Cybercriminals are reaping big. Not just in terms of data that they steal or compromise, but also in terms of money that they pilfer from large companies across the world. According to the British Insurance Company, Lloyd’s, the damage recorded by major enterprises annually is worth up to $400 billion. The worst part is that most cybercrime cases go unreported. According to some of the companies affected, they prefer to endure the path of silence rather than risking getting in trouble with relevant regulators or even being ridiculed, which may end up damaging their business reputation.
Allocation of funds
Most of the companies which have fallen victims in the past have been forced to significantly redirect financial resources to deal with cybercrime. In fact, the global spend has been on the rise to around $600 billion and is expected to continue rising in the next five years. Facebook, for example, takes most of the burden. The company incurs a significant amount of money for running digital forensics to address cyber crime. This money could be better used for innovation within the organization for research, community projects, and many other competing business priorities.
Opportunity cost
With cyber crime on the rise, companies are forced to dig deeper into their pockets. With the emergence of cyber insurance, it points to the high degree of financial resources which are being spent to address cybercrime cases. Furthermore, the technological landscape is constantly changing due to the rise of mobile applications adding more costs that need to be incurred to address security protocols on all relevant platforms. All in all, companies are taking the heat that emanates from hacks which are now becoming commonplace.
The opportunity cost of a hack is getting too high. With significant funds redirected to either fighting or cleaning up hacks, businesses are becoming less efficient and nimble.
There were over 1.5 million cyber attacks today. Are you ready?
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