Over the past ten years, U.S.-based companies have seen a dramatic increase in the number of reported data breaches and data exposures. From 419 reported cases in 2011, reports skyrocketed to 1,632 by 2017 and ended the decade with a hefty 1,001 reported breaches just last year, according to research group Statista.

While breaches may seem to be on a downward trend, this decline is deceptive. In fact, Deputy Attorney General Lisa Monaco at the Department of Justice warns, “It [cybercrime] has exploded; it has become more diffuse, more sophisticated, more dangerous than ever before.”

Cybersecurity used to be something of an afterthought for businesses and customers alike, but recent high-profile breaches have caused both groups to be more proactively concerned about the security of their data.

Weak business cybersecurity strategies account for approximately 155 million leaked personal records annually, and the resulting costs for businesses can be staggering. With the stakes so high, companies that prioritize cybersecurity gain a substantial competitive edge over those who do not – both in the minds of their customers, and to their bottom lines.

Risks to Business Competitiveness

In addition to a complete loss of consumer trust, businesses that fail to secure data and adequately prepare response plans face multiple disadvantages compared to those that do. Some of the most damaging consequences can include:

• Insurmountable Costs:

With the average total cost of a data breach at 3.86 million USD, many businesses simply cannot recover from the expenses caused by cyber-insecurity.

• Lengthy Downtimes:

Ransomware attacks that cripple a company’s ability to do business increased by 435% (Forbes) in 2020 over the previous year. The resulting downtime while trying to contain and eliminate these threats reduces company revenue, further exacerbating the damaging costs associated with recovering systems.

• Legal Consequences:

Notification laws require that companies notify consumers in the event of a breach. A failure to do so within the permitted time frame can result in substantial fines and penalties for businesses. In addition, organizations that fail to notify individuals affected by a breach will seem untrustworthy and unscrupulous.

Quick Cybersecurity Stats

Here is a quick list of some of the most impactful cybersecurity statistics compiled by industry experts:

• 86% of all data breaches are financially motivated, according to Verizon
• 45% of all breaches featured hacking, 17% involved malware, and 22% involved phishing, according to Verizon
• Google has registered 2,145,013 phishing sites as of Jan 17, 2021, according to Forbes
• There was a ransomware victim every 10 seconds in 2020, according to Forbes
• Cybercrime is expected to cost the world $10.5 trillion annually by 2025, according to Forbes
• Average time to identify and contain a breach is 280 days, according to IBM.

Staying Secure with ERP

Enterprise Resource Planning (ERP) solutions can help a business stay secure in a dangerous digital world. Whether your company is large or small, utilizing the latest ERP and Accounting Software solutions will strengthen the overall effectiveness of organizational data security.
Joseph Johnson, a research expert with Statista, notes that “On average, the two highest factors that added to the cost of a single data breach were security system complexity (exacerbated by lack of in-house expertise) and cloud migration. Meanwhile, incidence response plan testing and business continuity management helped lower the potential damage from an attack.”

With ERP software solutions, companies can tackle these data breach factors simultaneously – both by simplifying security through software that homogenizes company systems into one solution, and by facilitating cloud migration through customizable cloud-based ERP product solutions.

Maintain Your Competitive Edge

Effective cybersecurity is paramount to business growth with data security even more critical as remote work opens more opportunities for cybercriminals to attack. Organizations with disparate employees accessing ERP (Enterprise Resource Planning) business data and IT networks from multiple remote locations now have to worry about cybersecurity in a way they haven’t had to before, making them more vulnerable to threats and substantial risks.

Business leaders work hard and should not lose their edge over the competition because criminal actors make them a target for cybersecurity breaches. Instead, keep your business secure with a comprehensive ERP solution, expert cybersecurity support, and effective incident response plans and maintain your competitive edge.