The 2020 Hiscox Cyber Risks Report shows that if their number decreases, the cost of cyber attacks on businesses continues to increase. Indeed, 34% of companies have been the target of one or more attacks in the last 12 months, according to ourCyber Risk Management Report 2020. A decrease compared to the year 2019 (67%). At the same time, this same report shows that losses linked to cyberattacks have multiplied by 6 in one year, from a media cost of $ 9,000 to $ 51,200.
The average cost of cyberattacks is $ 35,000 compared to $ 9,000 in 2019, an increase of 290%! For large companies (+1000 employees), the average loss peaks at $ 458,000. An increase that is partly explained by the resurgence of ransomware: 350 companies in our sample reported having paid a ransom after an attack, including 18% of companies.
But beware, small businesses are more and more regularly the target of cyber attacks, the amounts of which can reach very large sums. So how much does a cyberattack cost? How do you estimate the cost of hacking for your small business? You can read my finance blogs.
How much does a cyberattack cost?
Small businesses easy prey for hackers.
We have the opportunity to meet many entrepreneurs as part of our workshops dedicated to the topic of cyber security. We have thus noticed that many of you think you are "too small" to interest hackers. Well no. Small businesses can also be the target of attacks. As our partner Inquest reminded us during our last “Breakfast & Learn” meeting, the question today there is no more time remaining whether we will be attacked but when.
Indeed, hackers launch thousands of attacks every day and wait for a careless mistake to get you off the hook. Indeed, if large companies remain those most likely to be affected. About 63% of companies with less than ten employees said they had not experienced any incident or breach. However, almost half of them (49%) do not have a cybersecurity manager and so there could be events not taken into account.
How do you estimate the cost of hacking for your small business?
Often times, when a business executive tries to assess what a cyberattack could cost them, they underestimate the risks and potential losses. Indeed, we are often satisfied with an estimate of "surface" which takes into account only the costs directly linked to the attack: customer information, credit monitoring, legal fees or regulatory sanctions. If that already sounds like a lot, they're just the tip of the iceberg.
A recent study by Deloitte identifies the “hidden costs” of cyber attacks. It thus gives a more accurate idea of the costs that could be associated with an attack on your business.
The 14 impacts of a cyberattack
In order to support you in this process, we have created the “Cyber Calculator ". It allows, on the basis of three very simple criteria (the nationality of your company, the sector of activity in which you operate and your turnover) to estimate how much could cost you a cyber attack. In a few clicks for free, you will receive an assessment of the risk to which you are exposed.