{"id":18328,"date":"2021-08-25T00:52:11","date_gmt":"2021-08-25T04:52:11","guid":{"rendered":"https:\/\/quantumlifecycle.com\/staging\/the-staggering-costs-of-data-breaches-how-to-prevent-them\/"},"modified":"2023-09-06T14:59:44","modified_gmt":"2023-09-06T18:59:44","slug":"the-staggering-costs-of-data-breaches-how-to-prevent-them","status":"publish","type":"post","link":"https:\/\/quantumlifecycle.com\/en_CA\/blog\/the-staggering-costs-of-data-breaches-how-to-prevent-them\/","title":{"rendered":"The Staggering Costs of Data Breaches & How to Prevent Them"},"content":{"rendered":"

The Digital Age has accelerated business in every industry. Yet, with digital advancements come new risks, including the potentially devastating impact of a data breach<\/a>. These cyber events can affect any business, though there are several tactics organizations can deploy to decrease their vulnerability. Here\u2019s what to know about the potential implications of a data breach and how to control your risk.<\/p>\n

The Far-Reaching Impact of Data Breaches<\/h2>\n

Data breaches<\/a> can affect a company in several ways. For one, they may encounter permanent reputational damage. Both existing and potential customers lose trust in a business when personal data is exposed. This damage can be costly and cut deep into a business\u2019s profits, with lost business accounting for 40%<\/a> of the total cost of a data breach on average.<\/p>\n

The other costs associated with data breaches can overwhelm businesses, too. Regulatory violations can add up: PIPEDA<\/a>, the Canadian federal law that governs the collection and use of personal data, carries fines of up to $100,000 per violation<\/a>. Insurance companies impose their own penalties, too. Premiums for business insurance can increase up to 200%<\/a> for the same coverage after personal data is leaked. When we factor in the loss of intellectual property and competitive advantage and operational downtime, the total cost of a data breach can climb exponentially.<\/p>\n

While it can vary based on the industry and size of the company, the average total cost of a data breach is $3.86 million<\/a>. For healthcare, the industry in which data breaches are most expensive, the cost is nearly double that figure, at $7.13 million<\/a>. These losses are significant for large companies, but they could bankrupt a smaller organization.<\/p>\n

The Newest Wave of Data Breaches: Ransomware Attacks<\/h2>\n

As technology evolves, so do cybercriminals. Ransomware is an increasingly popular tactic, consisting of a specific type of malware that encrypts data and renders it unusable to businesses. In exchange for decryption and access to data, hackers request a specific ransom value.<\/p>\n

Ransomware attacks are becoming larger in scale and are happening at an increasing rate. The cybercrime is quickly becoming one of the world\u2019s most pressing data security<\/a> concerns, and 2021 has already seen a number of attacks:<\/p>\n