How Much Should You Be Spending on Cybersecurity

Technology seems to occupy a bigger position in our lives and businesses with each passing year. There have been huge annual advancements in computers, phones, tablets, POS systems, cloud storage, data backup, software, and more create an ever-changing realm of IT possibilities.

This can make it difficult to determine how to allocate your business’ technology funds. Many owners make the mistake of using the same IT budgeting model every year without considering changing company needs and technological advancements that could benefit them. However, just like any other software, it needs to be updated after an extent of time.

One of the biggest problems is that as cybercrime around the world continues to dominate the news and it becomes increasingly necessary for business owners to evaluate their own data security measures, and most of the times, business owners fail to notice this an important fact. It is important for business owners to look into what security best fits their needs instead of just settling for the most popular or most affordable. As a business owner either big a business or small, you need to educate yourself on what works for you by Seeking different options deeper than just the surface. Although newsworthy cyber-attacks tend to focus on big corporations or large-scale attacks, small- and medium-sized businesses (SMBs) are not immune from malicious attacks. Any business big or small is at risk. In fact, SMBs are frequently targeted by hackers as easy prey.

SMB’s owners Downplaying the Risk often under the false assumption that their company size alone makes them safe from attack and tend not to invest in data security measures. However, may fail to realize, the size of a business does not determine security. A study by Ponemon Institute found that 58 percent of SMB managers do not consider data breaches in company risk assessments. Moreover, according to the United Nations Office on Drugs and Crime, 65 percent of SMBs have no formal cyber security policy in place. This lack of awareness and preparation make SMBs low-hanging fruit for small-scale individual hackers and sophisticated cybercrime rings alike. This goes to show many business owners need to educate themselves on what is best for their business. Many don’t realize it is better to be safe than sorry until after being a victim of attack. The “this would never happen to me” sort of mindset can also play a big part. Sometimes we tend to forget it can happen to anyone.

Because of lack of investment, SMBs with basic security measures in place may not realize their vulnerability and risk. A recent FireEye and Mandiant study found that 96 percent of hackers bypassed multiple layers of several SMBs’ basic security protocols in a real-world scenario, suggesting businesses’ overwhelming reliance on outdated solutions and a false sense of security. Anti-malware software companies have the arduous task of keeping up with the latest advancements in hacking tactics, which, in turn, requires businesses to continually update and patch the software that they rely on for protection. Without dedicated IT professionals on staff or only having one IT guru responsible for a wide range of duties, these updates can slip, opening the door for hackers to attack only making their malicious jobs easier.

Hackers have the power to leverage your company’s stolen information for payment, whether they sell your files to a third-party or hold them for ransom. The cost of a cyberattack or data breach can be astronomical, costing SMBs an average of $217 per stolen record, according to the same Ponemon Institute study. Moreover, according to the U.N. study, of those attacks reported to law enforcement, only 10 percent of SMB cybercrimes result in a conviction. Therefore, hackers are faced with a small risk / big reward scenario that entices more cybercriminals to approach cybercrime as a profession rather than a hobby. All that money that is now being used to repair the damage could’ve been invested into better security benefiting both the business and its people.

There is not a magic number to allocated in your budget for cybersecurity. Although, you need to be investing in monitoring tools as first step and be prepared for the worst-case scenario. Business owners need to stay very much aware and educated about their security needs in order to proceed with excellent business continuity without any worries. Hackers are thinking of ways to breach your systems all day every day. By staying on top of your security needs you are making their job much harder and your business much safer.

How much time and resources are you dedicating to securing your business data? Contact us today to learn how to combat cyber-attacks by taking strategic steps to protect your business data .

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