Cybercrime is on track to cost the world a staggering $10.5 trillion annually in 2025. With increased state-sponsored hacking rings and more financial incentives than ever, it's not slowing down anytime soon. Sadly, detection and prosecution rates are staggeringly low at 0.05% in the US, essentially giving cyber criminals a free pass to theft, destruction, and embezzlement.
Cyber criminals love nothing more than hearing "We'll invest in cybersecurity next year," or "We don't have the budget for the right security infrastructure, team, and resources." The consequences of underinvesting in cybersecurity should scare any leader or IT director. There are severe consequences of noncompliance, from millions of dollars lost to ransoms to business operations coming to a screeching halt for weeks to lost consumer trust.
According to IBM, the average data breach costs $4.88 million, a 10% increase over 2023 and the highest total ever. That figure rises for industries like healthcare, financial services, and government agencies that face legal fees, fines, and regulatory consequences. The cost of noncompliance with GDPR, HIPAA, and California Privacy Act (CPA) is also increasing in frequency when it comes to regulatory fines and penalties. Under GPR, the highest penalties can reach up to €20 million or 4% of the annual worldwide turnover.
High-profile cybercrime shows how devastating a successful attack can be on business operations. For example, the 2021 Colonial Pipeline ransomware attack shut down primary US fuel operations for almost a week, leading to fuel shortages and panic buying, disrupting global supply chains with ripple-effect consequences.
A cyber attack can severely threaten your business reputation, from audit failures to a loss of consumer trust. 74% of consumers said they would lose trust in a business after a data breach, and 70% would take their business elsewhere.
Even in mature, established cybersecurity programs, there are common areas of underinvestment. These areas might come from outdated legacy technology, third-party vendors, or identity and access management.
Almost 60% of data breaches come from third-party vendors, which is often much more challenging to detect than vulnerabilities within your own system. Just because you have security systems doesn't mean all your partners do. Leverage third-party risk assessment tools like security questionnaires and automated risk scoring to ensure your partners meet your compliance standards.
Older systems might start to fall by the wayside, skipping patches and updates, missing crucial security infrastructure, or creating security gaps when integrating across your tech stack. Legacy technology like data systems, IT infrastructure, or software applications might lack modern-day security tools, making them a prime target for cyberattackers.
A solid cybersecurity compliance checklist begins with a comprehensive risk assessment, employee training, incident response plans, and automated compliance monitoring and reporting. However, there are also other approaches to changing your business mindset, exploring fractional cybersecurity leadership, and investing in vulnerable areas.
One of the best ways to improve your security posture is to shift your mindset from reactive to proactive. Taking an offensive approach to compliance can reduce long-term costs and exposure. This approach means investing in security before a cyberattack, investing in solid infrastructure, and going above and beyond for compliance regulations.
Industry experts like Vistrada offer virtual Chief Information Security Officer (vCISO) services to proactively manage your cybersecurity program, mitigate risk, significantly lower operating expenses, and achieve compliance with industry and regulatory standards. If the budget doesn't allow you to hire full-time, expensive security leadership, the benefits of hiring a vCISO include increased compliance, protected investments, and improved business growth. Here are the best practices for integrating vCISO support into your security framework.
88% of data breaches come from human error, so relying on automated systems helps reduce the likelihood of human mistakes. While human oversight is important, automation can fill the 24/7/365 gap with continuous monitoring, real-time updates, and minimal downtime. Especially as systems become more interconnected and complex, automation helps keep up with the sophistication. Also, tools like Triton Regulatory Intelligence help monitor the collection and processing of data at scale, turning regulatory information into a competitive advantage.
Proactive cybersecurity is the name of the game, and services like Vistrada's vCISO support and Triton Regulatory Intelligence help drive overall cybersecurity success. With focused services, proven results, high-touch interactions, and comprehensive cybersecurity management, businesses can maximize their investment at a fraction of the cost. Talk to an expert today.