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Report: Average enterprise data breach cost rises to $1.3M

  • The cost of a data breach for enterprises in North America increased this year, according to a new report from Kaspersky Lab and B2B International, released Tuesday.
  • Breaches cost an average of $117,000 per incident for small- and medium-sized businesses (SMBs), the report also noted.After surveying more than 5,000 businesses across 30 countries, Kaspersky Lab found that businesses are beginning to view IT security as a strategic investment, and are increasing security budgets in response.
  • The average IT security budget for enterprises worldwide dropped from $25.5 million in 2016 to just $13.7 million this year—a major concern for businesses, as security breaches are getting more expensive to recover from.
  • SEE: Information security incident reporting policy (Tech Pro Research)When a data breach occurs in North America, the top financial losses for enterprises stem from additional staff wages needed ($207,000), while for SMBs, it is from loss of business ($21,000) and employing external professionals ($21,000).
  • Kaspersky Lab also recently released its Kaspersky IT Security Calculator, a free guide to the cost of IT security based on the average budgets being spent (by region, industry and company size), security measures, major threat vectors, and money losses.

The average cost of a data breach for enterprise organizations in North America is $1.3 million, and $117,000 for SMBs, according to a new report from Kaspersky Lab.

The cost of a data breach for enterprises in North America increased this year, according to a new report from Kaspersky Lab and B2B International, released Tuesday. The total impact of a data breach now amounts to $1.3 million for large companies—up from $1.2 million in 2016, the report found. Breaches cost an average of $117,000 per incident for small- and medium-sized businesses (SMBs), the report also noted.After surveying more than 5,000 businesses across 30 countries, Kaspersky Lab found that businesses are beginning to view IT security as a strategic investment, and are increasing security budgets in response. All companies spent 18% of their budget on IT security this year, compared to 16% last year, and this pattern was consistent across both large and small organizations. This year’s increases were driven by the growing complexity of IT infrastructure, the report noted.

Though IT security is receiving a larger portion of the budget, overall budgets are shrinking, the report found. The average IT security budget for enterprises worldwide dropped from $25.5 million in 2016 to just $13.7 million this year—a major concern for businesses, as security breaches are getting more expensive to recover from. SEE: Information security incident reporting policy (Tech Pro Research)When a data breach occurs in North America, the top financial losses for enterprises stem from additional staff wages needed ($207,000), while for SMBs, it is from loss of business ($21,000) and employing external professionals ($21,000).

Report: Average enterprise data breach cost rises to $1.3M

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