Despite a recent data breach, numerous corporations remain reluctant to increase their financial investment
In a recent development, AJ Thompson, the Chief Commercial Officer at Northdoor plc, a leading London-based IT consultancy specialising in data security, has expressed concerns about the decision of many organisations not to invest in cybersecurity after a breach.
According to Thompson, such a move is deeply flawed, as a breach indicates that existing security measures have failed. Without addressing these vulnerabilities, companies are inviting repeat attacks.
This concern is supported by the findings of IBM's annual Cost of a Data Breach report. The report reveals that the average cost of data breaches has hit a record high of $4.88 million in 2024, marking a significant rise from $4.4 million in the previous year. Alarmingly, the report highlights an alarming pattern of companies not increasing their security spending after a breach.
In fact, the report indicates that 51% of companies do not plan to increase their security spending after experiencing a breach. This figure is up by ten percent from 2023. There are no available search results providing information about companies that have increased their security spending only slightly after experiencing a data privacy failure.
Thompson recommends that organisations facing resource constraints should consider partnering with security consultancies for additional support. He emphasises that investing in cybersecurity is essential for survival in today's digital landscape.
The report also highlights the importance of addressing vulnerabilities within the supply chain. Many companies overlook these potential backdoor access points, which can provide a gateway for cyberattacks.
Northdoor plc has released its 2021 insurance sector cyber security assessment report, which analysed over 150 companies across the insurance sector. The assessment used the RiskXchange Cyber Risk Rating. The report reveals how the insurance sector is responding to threats and where vulnerabilities lie.
Interestingly, the report also found that organisations using AI and automation in their security systems save an average of $1.9 million per breach compared to those without such technologies.
Recent high-profile cyberattacks on key UK organisations, such as the hacking of two NHS Trusts, have further emphasised the importance of robust cybersecurity measures. Northdoor plc has provided some thoughts on this trend, as well as on the true costs of data breaches.
Daily global cyberattacks exceed 2,200, with ransomware featuring in 44% of data breaches. These statistics underscore the need for increased vigilance and investment in cybersecurity.
The IBM report was split across brokers, carriers, underwriters, and service providers. The report provides valuable insights for organisations seeking to improve their cybersecurity posture and protect against the growing threat of cyberattacks.
