The financial cost of data breaches has reached an all-time high in 2023, with the average breach costing companies $4.45 million.

The cost of data theft has consistently increased every year, according to prominent studies done by both IBM and Poneman Institute, indicating a serious need for businesses to address this concern.

In an example of needing to spend money to save money, the services of data theft protection companies have never been a more important investment for businesses hoping to avoid a data breach and protect themselves against the financial losses that they bring.

Internal Data Breach Detection Saves Money

According to surveys, only one-third of businesses detected their data breach internally, with two-thirds learning about their breach through associated third parties or attackers themselves.

Breaches that went undiscovered until revealed by attackers cost companies $1 million more, as these breaches were not identified until an average of three months later than those detected by a company’s own cybersecurity teams.

Similarly, it took third parties nearly two months longer to reveal ongoing data theft that businesses did not detect on their own.

Noting this, the one-third of businesses with effective cybersecurity strategies enabling them to detect breaches internally experienced a lower cost of damages related to their breach.

Involvement of Law Enforcement Recommended

Research on data theft protection also suggests that companies experiencing breaches must involve law enforcement once the breach is detected, especially in ransomware cases.

Of the companies surveyed, more than one-third that did not report their breaches to law enforcement experienced a data breach that was 33 days longer than average and cost them an additional $470,000 in expenses.

The inclusion of law enforcement in resolving data breaches saved companies time and money by shortening the breach life cycle as well as the damages that resulted from those breaches.

AI and Automation Reduce Effects of Data Theft Attacks

In an effort to detect breaches sooner, data theft protection companies recommend the implementation of AI and automation tools into a company’s cybersecurity strategy to reduce detection delays and allow for immediate reactions.

Research on businesses reporting breaches indicates that those using AI and automation had an incidence response that was an average of 108 faster than others, with a cost that was $1.76 million lower.

Save Money With Effective Data Breach Protection

Data breach protection is necessary not only to prevent these attacks but also to reduce the associated costs should they happen anyway.

With a combined effort that includes effective internal data theft protection strategies to improve incidence response such as the implementation of AI and automation tools, good employee training, investments in cybersecurity, and the involvement of law enforcement, businesses can reduce their data breach costs.

An experienced data breach protection company can help any business assess its threat detection capabilities and make improvements as needed to develop the most cost-effective solution for saving money on protecting their networks!