Cyber security is one of the most important issues facing businesses today. With data breaches becoming all too common, cyber security is at the top of every business’s list. But just how much does cyber security cost? And just how much do businesses actually spend on cyber security? In this article, we will explore these questions and more. We will also provide a few tips on how you can reduce your cyber security costs and ensure your business is as safe as possible.
What is cyber security?
Cyber security is a growing field, with more and more businesses expecting to be able to protect themselves from digital attacks. Cyber security makes up an estimated 7% of the GDP in the US and UK, according to Markets and Markets. Cyber security can encompass a wide range of activities and services, from protecting networks and endpoints from cyber attacks, to developing policies and procedures for incident response.
The cost of cyber crime depends on the organization’s size, sophistication levels and location, but a comprehensive report by Verizon found that the average cost per occurrence for data breaches was $5.1 million in 2016. That figure has been steadily increasing over the past few years as organizations have become better at recognizing when something is off and reacting quickly to prevent further damage. The number of malicious attempts against companies grew by 122% between 2013 and 2017, according to Verizon’s report “Operation Cloud Hopper: Advancing Global Anticipatory Security Strategies.”
There are a number of factors that contribute to increased costs associated with cyber security threats:
- Increased complexity of attacking targets – as attackers become more skilled at finding vulnerabilities in systems, they also become more capable of conducting simultaneous attacks that can overwhelm defenders.
- Growing use of artificial intelligence (AI) across multiple industries – AI can help automate some tasks involved in cybersecurity such as detecting malicious activity or tracking down stolen data. However, misuse of AI could lead to increased risks associated with cyberattacks.
- Evolving standards – as threats become more sophisticated, so too do the methods companies use to defend themselves. As a result, organizations need to maintain up-to-date equipment and software in order to stay ahead of the curve.
There are a number of different types of cyber attacks, which can include:
- Malicious software – this type of attack involves installing malicious software on a target computer in order to steal data or cause damage.
- Phishing scams – these attacks involve emails that look like they come from a trusted source such as a company’s HR department, but contain malicious content that attempts to trick the recipient into revealing personal information.
- Social engineering attacks – this type of attack involves exploiting someone’s trust by tricking them into revealing confidential information. For example, attackers may try to get someone to click on a link that takes them to a fake website, or they may try to trick someone into revealing their login credentials for an account they control.
- Malicious URLs – these are links that have been designed to exploit vulnerabilities in web browsers and redirect unsuspecting users toward illegitimate websites.
- Spear phishing – this type of attack is directed at specific individuals who are likely to have access to sensitive information. Attackers will send an email that appears to be from a trusted source such as a company’s HR department, but contains a link that leads to a phishing website designed to steal login credentials or other sensitive information.
Types of cyber security
Cyber security plays a critical role in safeguarding computer networks and data from potential cyber attacks. Cyber security professionals work to identify and prevent attacks before they occur, while also restoring affected systems or data should an attack occur. According to the Bureau of Labor Statistics (BLS), employment of cyber security specialists is projected to grow 19% over the next decade, much faster than the average for all occupations.
The BLS offers a few different ways to measure cyber security salaries. One estimate suggests that median annual pay for cyber security specialists was $102,580 in 2016. The highest paid 25 percent earned more than $160,780 annually, while the lowest paid 25 percent earned less than $62,590 annually. This suggests that cyber security salaries vary widely depending on experience and qualifications.
Cyber security jobs may be found in public or private sector organizations. The private sector typically employs more cyber security specialists than the public sector due to its reliance on computer networks and electronic data transmission. However, many public sector organizations are beginning to adopt cyber security policies and practices in order to protect their citizens’ personal information and government records.
The different types of cyber crime
Cyber crime is a growing concern for businesses and individuals. There are many different types of cyber crimes, each with its own consequences.
The most common types of cybercrime include theft of personal information, online fraud, and computer sabotage. Theft of personal information can be done by stealing someone’s credit card number or identity, or by accessing their email account without their permission. In online fraud, criminals use stolen identities to open fraudulent accounts in banks or other financial institutions, or to purchase goods online. Computer sabotage can involve deleting important files from a computer system, shutting down a company’s network access, or even causing the system to crash.
There are also more serious forms of cybercrime that can have much broader consequences. Cyber attacks on government agencies and critical infrastructure sectors (like power grids) can result in widespread damage and loss of life. Cyber espionage is another type of cybercrime that involves attackers stealing sensitive information from companies or governments for the purpose of economic gain or military advantage. Even electronic warfare – using the internet as a weapon to damage or destroy targets – is now considered a form of cyberwarfare.
As cyber crime becomes more sophisticated and brazen, businesses must continue to invest in cybersecurity measures to keep themselves and their customers safe. The cost of employing effective cybersecurity measures varies depending on the size and scope of the organization being protected, but it can typically range from tens of thousands to hundreds of thousands of dollars per year.
Cyber security is big business
Cyber security is big business and the sector is growing constantly. In 2016, the cyber security market was valued at over $160 billion and is expected to grow to reach $267 billion by 2025. Cybersecurity services are now one of the most in-demand services across all industries.
A study by MarketsandMarkets showed that the cyber security services market will grow at a CAGR of 19.1% between 2017 and 2024. The primary drivers behind this growth are increasing cyber threats, elevated investments in information technology (IT) infrastructure and growing awareness about the need for robust cybersecurity measures.
The top five providers of cyber security services accounted for 60% of revenue in 2016. These firms include Symantec (Nasdaq: SYMC), McAfee (NYSE: MCAF), Intel Security (NASDAQ: INTC), Kaspersky Lab (KLAVY) and Trend Micro (TMRD). Major clients of these companies include banks, tech giants, government agencies and large enterprise businesses.
Cyber security in the public sector
Cyber security is an important part of ensuring public safety and protecting government data, but it’s not the only cost to consider. According to the National Institute of Standards and Technology (NIST), cyber security costs in the public sector can amount to 1 percent or more of a department’s budget. Here are some examples:
- The FBI spent $2 million on cyber security in 2016.
- The Department of Homeland Security (DHS) estimates that its total annual cyber security costs will top $1 billion by 2021.
- The State Department has estimated that its worldwide cyber security spending could reach as high as $5 billion by 2020.Not all costs are easy to track, however, so it’s difficult to get an accurate picture of just how much cyber security costs the public sector each year. One way to estimate expenses is to look at attacks that have taken place and see how much money was lost due to them. In 2016, for example, hackers stole $81 million from banks using a type of ransomware called Wanna Cry. If we assume that this attack would have resulted in losses had it not been stopped quickly, then we can say that cyber security costs taxpayers approximately $81 million per year.
How cyber security affects small businesses?
Small businesses are often the first to be targeted in cyber attacks as they are more vulnerable and don’t have the same resources available to protect themselves. Cyber security can cost a small business anywhere from $3,000 to $250,000 per year, but it is important to remember that not every cyber attack results in financial losses. In fact, most small businesses only experience a few minor incidents each year that don’t cause any real disruption. However, if your business is hit with a major attack, it could end up costing you thousands of dollars. Here are three ways that cyber security affects small businesses:
- Increased Risk of Attacks: Cyber security is essential for protecting businesses from hackers who want to steal confidential information or interrupt operations. Unfortunately, small businesses are typically targets for attacks because they are less likely to have the same resources available to protect themselves as larger companies. In fact, 70% of all cyber crime takes place against small businesses .
- Reduced Productivity: A cyber attack can disrupt operations by causing systems to crash or by stealing confidential information. This can lead to lost sales and missed opportunities due to increased delays in shipping goods or services.
- Financial Losses: Cyber security breaches can also result in financial losses due to data theft or system disruptions that prevent customers from doing business with your company. If you suffer financial losses as a result of a cyber attack, it can be difficult to recover fully – especially if the attack was preventable.
Cyber security in the healthcare sector
Cyber security in the healthcare sector is an ever-growing concern, and for good reason. Transmissions and access to confidential data can have devastating consequences for organizations that don’t take adequate measures. The costs of not protecting data can be high, whether it’s from fines or lost revenue.
The healthcare sector is especially vulnerable to cyberattacks because of its highly sensitive data, its reliance on electronic systems, and the fact that it accounts for a large percentage of the world’s economy. In 2012, healthcare accounted for over $3 trillion in economic activity worldwide. That year, medical device companies were the most frequent target of cyberattacks, with losses totaling $2.7 billion.
There are a number of ways to prevent cyber attacks in the healthcare sector:
- Implement a comprehensive cyber security policy that specifies how data will be protected and accessed.
- Establish strong passwords and security protocols for accessing electronic files and databases.
- Install firewalls to protect against unauthorized access to system resources.
- Create robust notification and incident reporting procedures so that administrators know immediately if there’s been a breach in security.
Cyber security in the retail sector
The retail sector is one of the most vulnerable to cyber crime, with large numbers of companies and individuals falling victim each year. Cyber security in this sector can make a significant impact on business productivity and profitability, denying criminals access to customer data or causing systems to fail unexpectedly.
According to the 2015 State of Retail Security Report, 44 percent of retailers experience at least one data breach each year – costing them an average of $744,000. In addition, 71 percent of retailers say they have experienced a system failure due to cyberattack, resulting in lost sales or increased expenses.
In order to protect themselves against these threats, retailers must take steps such as implementing strong cybersecurity policies and procedures, installing robust anti-virus software, and training employees on how to identify and report suspicious behavior. By doing so, they can minimize the amount of damage inflicted by cybercrime and improve their overall business performance.
The cost of cyber security
Cybersecurity is a high-cost industry, with an average cost of $2.1 million per organization, according to the Ponemon Institute. The costs of cyberattacks vary depending on the size and sophistication of the organization and its cyber defense infrastructure, but they can be broadly categorized into two types: active attacks, in which hackers attempt to penetrate a company’s systems; and passive attacks, in which unauthorized individuals access data or systems without breaking through security measures.
The average cost for an organization to respond to a breach is $600,000. Cybersecurity expenses also include costs associated with training employees on how to protect their data, monitoring system activity for signs of compromise, and purchasing appropriate security equipment.
The financial impact of a cyberattack can be catastrophic. Consider the 2012 attack on Sony Pictures Entertainment—which resulted in the theft of intellectual property and confidential customer data—which impacted the company’s revenue by $170 million. In 2013, Target Corporation was hit with a massive data breach that resulted in the theft of more than 40 million credit card numbers and personal identifying information (PII) from customers who had made purchases at its stores between October 2013 and February 2014. This breach caused Target Corp.’s revenue to fall by more than 10 percent year over year due to decreased consumer spending within retail industries.
Cybersecurity is an ever-growing industry, and the demand for professionals with skills in this area only continues to increase. According to recent studies, the average cyber security professional makes more than $100,000 per year. Whether you are already employed in this field or you are looking to enter it soon, learning about cyber security salaries and what qualifications are necessary can help you make an informed decision about your future.