Security News > 2023 > October > The hidden costs of data breaches for small businesses

The cost of data breaches to all businesses is at its highest level ever with an average cost of more than $4.4 million globally, more than $5.1 million in Canada, and more than $9.4 million in the U.S. This financial impact could cripple a small business as they face potential regulatory actions and fines, legal fees, and the loss of customers.

3 in 4 small business leaders and 94% of the individual consumers surveyed said they are concerned about future data breaches.

To help avoid future breaches, more than 90% of small business leaders believe that data and information protection and compliance training is an essential security practice.

"Running a business is now more costly than ever, and businesses continue to look for ways to save money. Our 2023 Data Protection Report found that small business leaders recognize that information and data security are critical in building and retaining strong relationships with customers. However, many are still at risk of losing customers and related revenue if sensitive physical and digital data protection becomes compromised. Addressing data protection properly is an essential part of business leaders' strategic decisions," added White.

73% of the small business leaders and 94% of the consumers surveyed are concerned about data breaches in the future.

Only 60% say they are proactive when it comes to data and information protection, and a mere 22% report being 'extremely proactive,' potentially leaving many small businesses exposed to future issues.

News URL

https://www.helpnetsecurity.com/2023/10/31/small-business-data-safety/