Data Breach Calculator: Understanding the Real Cost of A Cyberattack
Many businesses don’t understand the actual cost a data breach has on their company. Not only do you lose trust in your current customers, but there are various financial burdens, including fines, legal fees, customer compensation, and the cost of repairing the security vulnerabilities that led to the breach. While these costs vary depending on the nature and scope of the breach, at bay’s Data Breach Calculator can provide you an estimate based on industry benchmarks and historical data.
How to Use the Cyberbreach Calculator
Once getting to the site, it will ask you to answer 10 questions on your company for an estimate. Picture a 50-person company grappling with the aftermath of a data breach triggered by a phishing scam. This breach exposes both employee and customer data, including personal and credit card information.
Example Scenario Results
For just a 50-person company, it would cost $846,000 and is broken out as the following:
- Breach coach – $25,000
- Forensics – $120,000
- Crisis Management – $20,000
- Notification – $2,900
- Call Center – $1,300
- Credit Monitoring – $30
- PCI Fines & Assessments – $77,000
- Regulatory Fines & Defense – $600,000
Cyberbreach Cost Breakdown
In this example, regulatory fines and defense make up a substantial 71% of the total costs. These fines are penalties from state attorneys and the Office of Civil Rights, particularly concerning HIPAA violations stemming from the breach.
Forensics follows as the second most significant cost, making up 14% of the expenses. Forensics investigations are crucial for determining the extent of the breach and whether public notification is warranted, with costs possibly pushing towards the millions for complex scenarios.
While the remaining costs might appear comparatively smaller, they hold significance in managing the aftermath of a data breach.
Additional Costs
Beyond the mentioned costs above, several other factors contribute to a data breach expense:
- Loss of revenue: A data breach can result in a loss of customers and revenue.
- Damage to reputation: The reputational damage caused by a data breach can hinder your company’s ability to attract new customers and partners.
- Increased IT costs: Preventing future breaches may need substantial investments in new security measures.
Conclusion
We encourage you to test At Bay’s data breach calculator, allowing you to gauge the potential financial impact a breach could have on your company today. Moreover, we recommend reaching out to PivIT Strategy to explore comprehensive strategies for breach prevention and to uncover actionable steps you can take to fortify your defenses. Your business’s future security is worth every proactive effort.
