Preventing Business Cyber Attacks: The Cost Comparison of 15 Cyber Incidents vs Proactive Cybersecurity Measures.
In 2022, the average cost of a data breach has reached a record high of US$4.35 million, according to the 2022 cost of a data breach report by IBM and the Ponemon institute.
Cyber attacks, data breaches, and ransomware attacks have become more frequent and damaging in recent times. These types of incidents can be expensive and can result in not just financial losses, but also the loss of customer trust, productivity, and important data and intellectual property. Some of the most expensive cyber attacks have caused billions of dollars in damage and affected millions of people and organizations worldwide.
To prevent these kinds of incidents, it’s important for organizations to take proactive measures to protect their data and assets. This can include network security, endpoint protection, vulnerability management, data encryption, and security awareness training. Investing in these measures is much more cost-effective than trying to recover from a breach. For example, the Equifax data breach cost the company up to $700 million in settlements and legal fees, and the WannaCry ransomware attack caused an estimated $4 billion in damages globally.
Innovation and financial stability are great, but don’t neglect cyber security. A data breach can harm your reputation and cost more than proactive measures. Protect your company now.
In addition to external threats, organizations also face the risk of insider threats, espionage, and the theft of trade secrets. Employees who have access to sensitive information can cause harm to the company, whether intentionally or unintentionally. Regular security assessments and audits can help organizations identify areas for improvement and make sure their cybersecurity practices are effective.
In short, the cost of not investing in proactive cybersecurity measures can be substantial, both in terms of financial damage and reputational harm.
List of high-profile cyber attacks, data breaches, and ransomware attacks, along with explanations of what happened, statistics, and how they could have been prevented with proper cybersecurity measures:
- Marriott International Data Breach (2018) – A data breach that affected 500 million customers and exposed sensitive information such as names, addresses, birth dates, passport numbers, and credit card information. The breach was caused by a vulnerability in Marriott’s Starwood guest reservation system, which was not properly secured. The breach cost Marriott $124 million and caused reputational damage. To prevent such attacks, companies should implement strong security measures for their reservation systems, regularly assess and update their security posture, and invest in employee training and education on cyber security best practices.
- Capital One Data Breach (2019) – A data breach that affected over 100 million customers and applicants and exposed sensitive information such as names, addresses, phone numbers, email addresses, dates of birth, credit scores and credit card information. The breach was caused by a misconfigured firewall in the company’s cloud infrastructure and cost $150 million with reputational damage to Capital One. To prevent such attacks, companies should implement strong security measures for their cloud infrastructure, regularly assess and update their security posture, and invest in employee training and education on cyber security best practices and that access to sensitive data is limited to authorized personnel only.
- Target Data Breach (2013) – A data breach that affected 40 million customers and exposed sensitive information such as names, addresses, phone numbers, email addresses, and payment information. The breach was caused by a vulnerability in Target’s point-of-sale systems, which were connected to the company’s network. To prevent such attacks, companies should ensure their point-of-sale systems are properly secured and regularly updated to address vulnerabilities.
- Equifax Data Breach (2017) – A data breach that affected 147 million customers and exposed sensitive information such as names, addresses, social security numbers, birth dates, and payment information. The breach was caused by a vulnerability in Equifax’s web application software, which was not patched in a timely manner. The breach cost Equifax $575 million and caused reputational damage. Equifax Inc. has agreed to pay at least $575 million, and potentially up to $700 million, as part of a global settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau (CFPB), and 50 U.S. states and territories, which alleged that the credit reporting company’s failure to take reasonable steps to secure its network led to a data breach in 2017 that affected approximately 147 million people. (https://www.ftc.gov/news-events/news/press-releases/2019/07/equifax-pay-575-million-part-settlement-ftc-cfpb-states-related-2017-data-breach) To prevent such attacks, companies should ensure their web applications are regularly updated to address vulnerabilities and implement a robust security monitoring and response plan and invest in employee training and education on cyber security best practices.
- SolarWinds Supply Chain Attack (2020) – A supply chain attack that affected 18,000 organizations worldwide, including government agencies and Fortune 500 companies. The attackers used a compromised software update from SolarWinds to gain access to sensitive information. To prevent such attacks, companies should implement a rigorous supply chain security program that includes regular security audits and risk assessments of third-party vendors.
- JPMorgan Chase Data Breach (2014) – A data breach that affected 76 million households and 7 million small businesses, exposing sensitive information such as names, addresses, phone numbers, email addresses, and internal bank information. The breach was caused by a vulnerability in JPMorgan’s network, which was not properly secured. JPMorgan Chase estimated that the breach would cost the company $1 billion, including increased security measures, customer notifications, and legal fees. To prevent such attacks, companies should implement strong network security measures and regularly assess and update their security posture.
- Uber Data Breach (2016) – A data breach that affected 57 million customers and 600,000 drivers, exposing sensitive information such as names, addresses, email addresses, and driver’s license numbers. The breach was caused by a vulnerability in Uber’s AWS cloud infrastructure, which was not properly secured. The breach cost Uber $148 million, including a settlement with regulators and reputational damage. To prevent such attacks, companies should ensure their cloud infrastructure is properly secured and implement regular security audits and risk assessments.
- NotPetya Ransomware Attack (2017) – A ransomware attack that affected thousands of companies worldwide, causing widespread disruption and financial losses. The attack was disguised as a tax software update and encrypted files, demanding payment for their release. To prevent such attacks, companies should implement strong security awareness training for employees and implement robust email filtering systems to prevent phishing and malicious software.
- Anthem Data Breach (2015) – A data breach that affected 80 million customers and exposed sensitive information such as names, addresses, birth dates, Social Security numbers, and medical information. The breach was caused by a vulnerability in Anthem’s network, which was not properly secured. The breach cost Anthem $115 million and caused reputational damage. To prevent such attacks, companies should implement strong network security measures, regularly assess and update their security posture, and invest in employee training and education on cyber security best practices.
- WannaCry Ransomware Attack (2017) – A ransomware attack that affected over 200,000 computers in 150 countries and caused widespread disruption to businesses, governments and financial losses. The attack exploited a vulnerability in outdated versions of Microsoft Windows operating systems and encrypted files, demanding payment in exchange for their release. To prevent such attacks, companies should ensure their systems are up to date with the latest security patches and implement a robust backup and recovery plan, strong security awareness training for employees, and invest in other network security measures.
- Target Data Breach (2013) – A data breach that affected 110 million customers and exposed sensitive information such as names, addresses, birth dates, and credit card information. The breach was caused by a vulnerability in Target’s point-of-sale systems, which were not properly secured. The breach cost Target $162 million and caused reputational damage. To prevent such attacks, companies should implement strong security measures for their point-of-sale systems, regularly assess and update their security posture, and invest in employee training and education on cyber security best practices.
- Red Cross Data Breach (2022) In January 2022, hackers carried out an attack on servers hosting the personal information of more than 510,000 people receiving services from the Red Cross and Red Crescent Movement, locations and contact data. The International Committee of the Red Cross has revealed that hackers have stolen data on over 515,000 “highly vulnerable people,” recipients of aid and services from at least 60 affiliates of the charitable organization worldwide. During the investigation into the extent of the attack, which targeted a contractor in Switzerland that was storing the data. The biggest concern is that the hackers will ransom, leak or sell sensitive information on the families and their locations to bad actors who might seek to cause further harm to victims. To prevent such attacks, regular security assessments and audits can help organizations identify areas for improvement and ensure that their cybersecurity practices are comprehensive and includes regular security audits and risk assessments of third-party vendors.
- The Sony Pictures Entertainment cyber attack occurred in November 2014 and was caused by a group calling themselves the “Guardians of Peace.” The hackers gained access to Sony’s internal network and stole sensitive data, including employee personal information, unreleased movies, and confidential emails. The cost of the Sony attack was estimated to be around $15 million in direct expenses, but the reputational damage and loss of trust from customers, partners, and employees was much greater. To prevent similar attacks, companies should have strong passwords, regular software updates, and network security protocols in place. Additionally, companies should regularly backup important data and have incident response plans in place to quickly respond to a breach.
- Yahoo Data Breaches (2013-2014) – Cost: $117.5 million The Yahoo data breaches exposed the personal information of all three billion Yahoo users, including names, email addresses, phone numbers, and dates of birth. The breaches were caused by state-sponsored hackers who exploited vulnerabilities in Yahoo’s security systems. However after an internal investigation and Yahoo concluded the hack originated from a phishing email. This is an email appearing to be from a legitimate source with a link to direct the user to a source with the intention to obtain sensitive information or to install malware (unauthorized software). Yahoo agreed to pay $117.5 million in settlements with the Securities and Exchange Commission and multiple states to resolve investigations and lawsuits. To prevent such attacks conduct regular employee training. Train employees to recognize phishing attacks to avoid clicking on malicious links.
- Twitter Data Breach (2021) – Cost: $250 million The Twitter data breach exposed the personal information of approximately 130 million users, including names, email addresses, and phone numbers. The breach was caused by a coordinated attack by a group of hackers who targeted Twitter’s employees with a phishing scam. Twitter agreed to pay a $250 million settlement with the Federal Trade Commission to resolve investigations and lawsuits related to the breach. To prevent pushing scan attacks conduct regular employee training: Train employees to recognize phishing attacks to avoid clicking on malicious links. Deploy a spam filter: Set up inbound spam filtering that can recognize and prevent emails from suspicious sources from reaching the inbox of employees.
Furthermore, cyberattacks are becoming increasingly sophisticated and frequent, making it crucial for organizations to take proactive measures to protect themselves. Implementing a comprehensive cybersecurity program, with a focus on network security, endpoint protection, vulnerability management, data encryption, and security awareness training, can help organizations mitigate the risks posed by cyberattacks and reduce their exposure to data breaches and other types of incidents.
The benefits of proactive cybersecurity far outweigh the costs, making it a crucial investment for any organization that values its data, assets, and reputation.
The following cybersecurity services and solutions can help prevent the types of attacks mentioned above:
- Network security: Network security solutions, such as firewalls, intrusion detection and prevention systems (IDPS), and virtual private networks (VPNs), can help prevent unauthorized access to a network.
- Endpoint protection: Endpoint protection solutions, such as antivirus software and endpoint detection and response (EDR) tools, can help protect individual devices from malware and other threats.
- Vulnerability management: Vulnerability management solutions can help organizations identify and remediate security vulnerabilities in their systems and applications before they can be exploited by attackers.
- Identity and access management (IAM): IAM solutions can help organizations control access to their systems and data by establishing strong authentication and authorization processes.
- Data encryption: Data encryption solutions can help protect sensitive data by rendering it unreadable to unauthorized users, even if it is intercepted or stolen.
- Disaster recovery and business continuity planning: Disaster recovery and business continuity planning solutions can help organizations quickly respond to and recover from a cyber attack by having a plan in place for responding to incidents and restoring critical systems and data.
- Security awareness training: Security awareness training can help educate employees on the importance of cybersecurity and how to identify and avoid common cyber threats.
- Penetration testing: Penetration testing services can help organizations identify and remediate security weaknesses in their systems and applications by simulating real-world cyber attacks.
By implementing these cybersecurity services and solutions, organizations can help reduce their risk of being targeted by cyber attacks, data breaches, ransomware attacks, and other types of cyber threats.
Organizations that value their data, assets, and reputation should take a proactive approach to cybersecurity to ensure that they are well-prepared to respond in the event of an incident and avoid the high costs associated with data breaches, ransomware attacks, and other types of cyberattacks.
Tips on how to prevent cyberattacks.
By taking these steps, organizations can greatly reduce their risk of falling victim to a cyberattack.
- Implement a secure network architecture: A secure network design that implements multiple defensive layers is critical to defend against threats and protect resources within the network. The design should follow security best practices and model Zero Trust. This means verifying user identities, devices, and systems before granting access to network resources .
- Invest in security resilience: Security resilience is the ability to protect the integrity of every aspect of your business in order to withstand unpredictable threats or changes. Investing in security resilience helps ensure that your business can survive and thrive, even in the face of a cyberattack.
- Use secure DNS: Cisco Umbrella secure DNS can also stop compromised systems from exfiltrating data via command and control (C2) callbacks to the attackers botnet infrastructure, over any port or protocol. Unlike appliances, our cloud security platform protects devices both on and off the corporate network, and unlike agents, the DNS-layer protection Cisco Umbrella provides is easy to deploy and maintain.
- Keep systems and software up-to-date: Regularly updating systems and software helps to patch vulnerabilities and keep your network secure. This also includes making sure that antivirus and antimalware software is up-to-date and actively running on all devices connected to the network.
- Train employees on cybersecurity best practices: Cybersecurity is a shared responsibility and everyone in your organization has a role to play in keeping the Internet safe. Regular training for employees can help raise awareness about the latest cyber threats and best practices for staying safe online
- Use unique usernames, passwords and account settings: Most devices have default administrative credentials which are advertised to the public, and they often grant full administrative access to a device.
- Enable and configure logging to identify malicious activity: Logging is an important mechanism for recording device activities and tracking network security events. It provides administrators with the ability to review the logs for suspicious activities and to investigate incidents.
- Protect your network management tools from adversaries: Network devices can be managed remotely by administrators through various services. Some common network services include SSH, Hypertext Transfer Protocol (HTTP), SNMP, and File Transfer Protocol (FTP). These services are useful for administrators, but they are also targeted by adversaries to exploit and gain privileged level access to a device. All of them must be properly configured to reduce the probability of a compromise.
- Configure your routers for network use vs malicious abuse: Routers forward data packets between computer networks. When a router receives a packet, it uses its routing table and the packet’s network address information to determine the next hop to reach its destination. An improper configuration of the router itself or the dynamic routing protocols used to populate the routing table could allow an adversary to redirect packets to a different destination, allowing sensitive data to be collected, manipulated, or discarded, which would violate confidentiality, integrity, or availability.
There are many steps that organizations can take to prevent cyberattacks, including implementing a secure network architecture, investing in security resilience, using secure DNS, keeping systems and software up-to-date, and training employees on cybersecurity best practices. By taking these steps, organizations can greatly reduce their risk of falling victim to a cyberattack
“Hackers need to identify and take advantage of security flaws, while cyber defenders are tasked with closing them.”
Strong cybersecurity practices is essential for protecting organizations and their customers from the ever-growing threat of cyberattacks. The cost of a data breach or ransomware attack can be staggering, and the impact can last for years. By taking a proactive approach to cybersecurity, organizations can reduce their risk and ensure that they are well-prepared to respond in the event of an incident. Investing in proactive cybersecurity measures can help organizations avoid the high costs associated with data breaches, ransomware attacks, and other types of cyberattacks. The savings from avoiding a data breach alone can make proactive cybersecurity measures a worthwhile investment. Additionally, the reputational damage caused by a data breach or ransomware attack can have a long-lasting impact on an organization’s brand and customer trust.
According to recent studies, the average cost of a data breach is approximately $4.35 million (2022), while the cost of implementing proactive cybersecurity measures can be significantly less.
As a business owner or stakeholder, it’s important to understand that your company, no matter how innovative or financially stable it may be, is still vulnerable to a data breach. In today’s digital age, cyber attacks are becoming increasingly common and can cause devastating damage to your business’s reputation and bottom line. That’s why it’s crucial to prioritize proactive cyber security measures. By investing in the right tools, training your employees, and staying vigilant about potential threats, you can help protect your business from the consequences of a data breach. Don’t wait until it’s too late – take action now to safeguard your company’s future.
Sources for the above information include:
US Cybersecurity and Infrastructure Security Agency (CISA)
FBI Cyber Crime Division
The Wall Street Journal
Network Infrastructure Security Guide
The 5 dimensions of security resilience
Cybersecurity companies and industry experts interviews.
The Guardian: “Sony Pictures Hack: What We Know so Far
Wikipedia: “Sony Pictures Hack”
3 Mega-breaches and how they could have been prevented
Alarming Cyber Statistics For Mid-Year 2022 That You Need To Know
Cost of Data Breaches Report by IBM Security
The Global Ransomware Market Report by Cybersecurity Ventures (https://cybersecurityventures.com/global-ransomware-market-report/)
Data Breach Statistics by the Identity Theft Resource Center (https://www.idtheftcenter.org/data-breaches/)
Cybercrime Statistics by Cybersecurity Ventures (https://cybersecurityventures.com/cybercrime-statistics/)
Global State of Information Security Survey by PwC (https://www.pwc.com/gx/en/services/consulting/information-security-survey.html)
Disclaimer: The logos used in this image are for informational purposes only and do not represent any affiliations or endorsement by the respective companies. The companies represented in the image have been previously reported to have suffered from data breaches. The purpose of this image is to raise awareness about the importance of proactive cyber security measures for all companies. The information provided is based on publicly available sources and is intended to be used for educational purposes only.
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