Cost of cyber security breaches doubles, reaches USD 2.2 million

According to the Information Security Breaches Survey 2015, the rising costs of malicious software attacks and staff-related breaches and illustrates the need for companies to take action. For small and medium sized businesses (SMEs), the most severe breaches cost can now reach as high as USD 475,213 (GBP 310,800), up from USD 175,835 (GBP 115,000) in 2014.

However, more companies are taking action to tackle the cyber threat, with a third of organisations now using the government’s guidance, up from a quarter in 2014. And nearly half (49%) of all organisations have achieved a ‘Cyber Essentials’ badge to protect themselves from common internet threats, or plan to get one in 2016.

The survey unveils that 90% of large organisations reported they had suffered an information security breach, while 74% of small and medium-sized businesses reported the same. For companies with more than 500 employees the average cost of the most severe breach is now between GBP USD 2.2 million (1.46 million) and USD 4.8 million (GBP 3.14 million).

For small and medium sized business the average cost of the worst breach is between USD 114,675 (GBP 75,000) and USD 475,213 (GBP 310,800). Also, 75% of large businesses and 30% of small business suffered staff-related breaches.