{"id":43041,"date":"2025-08-21T04:32:03","date_gmt":"2025-08-20T16:32:03","guid":{"rendered":"http:\/\/sticky-highjinx.flywheelsites.com\/?p=43041"},"modified":"2025-08-21T04:32:11","modified_gmt":"2025-08-20T16:32:11","slug":"cost-of-security-breach","status":"publish","type":"post","link":"https:\/\/envistacorp.techyscouts.dev\/en-au\/2025\/08\/21\/cost-of-security-breach\/","title":{"rendered":"Understanding the True Cost of a Security Breach"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>When housing insurance first became available, people were not convinced it was a good idea. The concept of paying upfront for insurance to cover an event that might occur seemed illogical. Without a need for the insurance, people weren\u2019t buying in.<\/p>\n\n\n\n<p>Then a person saw their neighbor\u2019s house catch on fire and the need for housing insurance became apparent. \u201cIt could happen to me\u201d suddenly became a reality.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-no-one-is-exempt-from-an-attack\"><strong>No One Is Exempt from an Attack<\/strong><\/h2>\n\n\n\n<p>Every year, thousands of companies suffer from security breaches. The <a href=\"https:\/\/www.ibm.com\/thought-leadership\/institute-business-value\/report\/2025-threat-intelligence-index\" target=\"_blank\" rel=\"noreferrer noopener\">top sectors at risk<\/a> include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Manufacturing:<\/strong> 26 percent of incidents<\/li>\n\n\n\n<li><strong>Finance and insurance:<\/strong> 23 percent of incidents<\/li>\n\n\n\n<li><strong>Professional, business and customer services:<\/strong> 18 percent of incidents<\/li>\n\n\n\n<li><strong>Energy:<\/strong> 10 percent of incidents<\/li>\n<\/ul>\n\n\n\n<p>The following headlines are prime examples of major companies affected by data breaches:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>AT&amp;T says <a href=\"https:\/\/techcrunch.com\/2024\/07\/12\/att-phone-records-stolen-data-breach\/\" target=\"_blank\" rel=\"noreferrer noopener\">criminals stole phone records<\/a> of \u2018nearly all\u2019 customers in new data breach<\/li>\n\n\n\n<li>A Ticketmaster hack may <a href=\"https:\/\/www.npr.org\/2024\/06\/01\/nx-s1-4988602\/ticketmaster-cyber-attack-million-customers\" target=\"_blank\" rel=\"noreferrer noopener\">affect more than 500 million customers<\/a><\/li>\n\n\n\n<li>Bank of America Customers <a href=\"https:\/\/www.nasdaq.com\/articles\/bank-of-america-customers-left-in-the-dark-about-data-breach-for-90-days\" target=\"_blank\" rel=\"noreferrer noopener\">Left In The Dark About Data Breach<\/a> For 90 Days<\/li>\n<\/ul>\n\n\n\n<p>While headlines often highlight large, well-known organisations,\u00a0security breaches affect companies of all sizes \u2014 and small businesses are often an ideal target.<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There were&nbsp;<a href=\"https:\/\/www.idtheftcenter.org\/publication\/2023-data-breach-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">2,365 cyberattacks in 2023<\/a>, with 343,338,964 victims.<\/li>\n\n\n\n<li>A <a href=\"https:\/\/www.ibm.com\/reports\/data-breach\" target=\"_blank\" rel=\"noreferrer noopener\">data breach costs<\/a> an average of $4.9 million.<\/li>\n\n\n\n<li><a href=\"https:\/\/pages.egress.com\/whitepaper-email-risk-report-01-24.html\" target=\"_blank\" rel=\"noreferrer noopener\">Email security incidents<\/a> have been reported by 94 percent of organisations.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>While IT departments often promote increasing security efforts, businesses typically wait until a breach occurs before investing resources. Organisations need protection \u2014 a security insurance policy \u2014 before disaster strikes.<\/p>\n\n\n\t\t<div data-elementor-type=\"page\" data-elementor-id=\"114847\" class=\"elementor elementor-114847\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-41ad0b5 elementor-section-stretched elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-eae-slider=\"7416\" data-id=\"41ad0b5\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"aux-parallax-section has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-61a0c0b\" data-eae-slider=\"44071\" data-id=\"61a0c0b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-inner-section elementor-element elementor-element-8e36e15 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-eae-slider=\"66843\" data-id=\"8e36e15\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"aux-parallax-section has_eae_slider elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-7452533\" data-eae-slider=\"18456\" data-id=\"7452533\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0312418 elementor-widget elementor-widget-spacer\" data-id=\"0312418\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"aux-parallax-section has_eae_slider elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-9c1b27b\" data-eae-slider=\"31771\" data-id=\"9c1b27b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5725035 elementor-widget elementor-widget-text-editor\" data-id=\"5725035\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<strong>SECURITY ASSESSMENT<\/strong>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cf591c7 elementor-widget elementor-widget-heading\" data-id=\"cf591c7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Take the First Step Toward a More Secure Organization\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a5b76c5 elementor-widget elementor-widget-text-editor\" data-id=\"a5b76c5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"TypographyPresentation TypographyPresentation--medium RichText3-paragraph--withVSpacingNormal RichText3-paragraph\">enVista\u2019s cybersecurity risk assessment identifies holes in your attack surface and provides a cohesive strategy to protect your organisation and employees from a security breach.<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-60910aa elementor-widget elementor-widget-button\" data-id=\"60910aa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/web.envistacorp.techyscouts.dev\/security-assessment\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Request Assessment<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-breaking-down-the-cost-of-a-security-breach\"><strong><strong>Breaking Down the Cost of a Security Breach<\/strong><\/strong><\/h2>\n\n\n\n<p>Following a breach, organisations incur direct and indirect costs. In the financial industry alone, <a href=\"https:\/\/www.ibm.com\/think\/insights\/cost-of-a-data-breach-2024-financial-industry\" target=\"_blank\" rel=\"noreferrer noopener\">security breaches cost targeted companies<\/a> an average of $6.08 million. When hackers leak 50 million records or more, the costs may soar to $375 million.<\/p>\n\n\n\n<p>In addition to the <a href=\"https:\/\/envistacorp.techyscouts.dev\/blog\/how-recent-cyber-security-attacks-have-impacted-businesses\" target=\"_blank\" rel=\"noreferrer noopener\">financial impact<\/a>, the company&#8217;s reputation takes a hit. Customers may withdraw their accounts after a leak, causing a drop in profits and stock prices.<\/p>\n\n\n\n<p>Sometimes, a breach leads to expensive lawsuits. Businesses need a strong PR strategy to recover from a hacking incident.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-direct-costs\"><strong>Direct Costs<\/strong><\/h3>\n\n\n\n<p>Any expense incurred as a result of activities performed post-breach, such as the need for legal aid, is a direct cost.<\/p>\n\n\n\n<p>Direct costs of a security breach may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increased investment in an organisational security program<\/li>\n\n\n\n<li>Federal and State regulatory penalties<\/li>\n\n\n\n<li>Legal aid<\/li>\n\n\n\n<li>Identity protection services for victims<\/li>\n\n\n\n<li>Hiring professionals to investigate the breach<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-indirect-costs\"><strong>Indirect Costs<\/strong><\/h3>\n\n\n\n<p>Indirect costs are expenses incurred as a direct result of a security breach, such as lost business. These costs are easy to overlook until a breach impacts your business. The impact of indirect costs shouldn\u2019t be underestimated, as they often make it difficult for companies to recover from an attack.<\/p>\n\n\n\n<p>According to a study conducted by the Ponemon Institute, companies spend almost twice as much on indirect costs as they do on direct costs.<\/p>\n\n\n\n<p>Indirect costs may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employee time spent on recovery (downtime, time to restore, time to recover, time spent notifying customers)<\/li>\n\n\n\n<li>Lost business and customer turnover<\/li>\n\n\n\n<li>Negative impact on reputation<\/li>\n\n\n\n<li>Litigation by impacted customers<\/li>\n\n\n\n<li>Damage to company databases<\/li>\n\n\n\n<li>Increase in the cost of obtaining new customers (due to failed trust)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-average-cost-of-a-data-breach\">What Is the Average Cost of a Data Breach?<\/h2>\n\n\n\n<p>The average data breach cost can vary depending on the size and nature of the breach, as well as the industry and location of the affected organisation. However, the <a href=\"https:\/\/www.ibm.com\/reports\/data-breach\" target=\"_blank\" rel=\"noreferrer noopener\">global average cost of a data breach<\/a> was $4.88 million in 2024.<\/p>\n\n\n\n<p>This cost includes expenses such as investigations, remediation, notification, legal fees and lost business. The study also found that the average cost per lost or stolen record was $150.<\/p>\n\n\n\n<p>As of 2024, the&nbsp;top five most vulnerable industries include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Transportation<\/li>\n\n\n\n<li>Manufacturing<\/li>\n\n\n\n<li>Finance and insurance<\/li>\n\n\n\n<li>Professional, business and customer services<\/li>\n\n\n\n<li>Energy<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-protect-your-business\">Protect Your Business<\/h2>\n\n\n\n<p>Protecting your business from security breaches could save about $2.2 million and preserve your company&#8217;s reputation.&nbsp;<\/p>\n\n\n\n<p>Take the following measures to secure your business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-proactive-measures-prevention-through-technology\"><strong>Proactive Measures: Prevention Through Technology<\/strong><\/h3>\n\n\n\n<p>AI\/ML tools are continuously learning and updating, which helps you stay ahead of the latest cyber threats. You could also invest in zero-trust architecture that requires authentication for each login. Encryption scrambles your sensitive data, while employee training helps your company prepare for threats.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-reactive-measures-responding-to-a-breach\"><strong>Reactive Measures: Responding to a Breach<\/strong><\/h3>\n\n\n\n<p>Write a breach response plan that provides clear instructions for recovering after an attack. Afterward, your forensics team will find the source while you talk to lawyers about your legal response. Hire a publicist who can explain the issue to the public while minimising the damage to your reputation.<\/p>\n\n\n\n<p>No business is exempt from attack. Security breaches impact both large and small organisations.<\/p>\n\n\n\n<p>Think of your security program as an insurance policy. The more proactive you are, the less likely it is that your organisation will experience an attack and be forced to learn the true cost of a security breach.<\/p>\n\n\n\n<p>Unsure where to begin? Start with an <a href=\"https:\/\/web.envistacorp.techyscouts.dev\/security-assessment\" target=\"_blank\" rel=\"noreferrer noopener\">IT Security and Risk Assessment<\/a>. Our team can help you develop a <a href=\"https:\/\/envistacorp.techyscouts.dev\/en-au\/managed-services\/it\/security\/\" target=\"_blank\" rel=\"noreferrer noopener\">cybersecurity solution<\/a> that minimises breaches and helps you respond to and contain threats as they emerge.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Security breaches can be detrimental to organisations of all sizes. That is why it is important to take a proactive approach and invest in a security insurance policy before disaster strikes.<\/p>\n","protected":false},"author":22,"featured_media":117337,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_searchwp_excluded":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[3475],"tags":[3913,3769,3563],"class_list":["post-43041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-cyber-security","tag-information-technology","tag-security"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding the True Cost of a Security Breach - enVista<\/title>\n<meta name=\"description\" content=\"Learn the true cost of a security breach and how to protect your business. 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