{"id":18330,"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":"2021-08-25T00:52:11","modified_gmt":"2021-08-25T04:52:11","slug":"the-staggering-costs-of-data-breaches-how-to-prevent-them","status":"publish","type":"post","link":"https:\/\/quantumlifecycle.com\/en_CR\/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. 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 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 concerns, and 2021 has already seen a number of attacks:<\/p>\n