• Average cost of cyber attack for large businesses now stands at £652,000

Large businesses will lose, on average, £652,000 per cyber-security incident they experience, while the average cost to SMEs is £65,500, according to research from Kapersky Lab.

The report also highlighted that quick reactions to breaches can save businesses money. Small business pay 44% more for breaches discovered a week or more after the event, while large enterprises pay 27% more when attacks are discovered late.

Vladimir Zapolyansky, head of SMB marketing at Kaspersky Lab, said: “Based on our worldwide survey, the average IT security budget is ‘worth' just 2.5 cyber-attacks once all direct and indirect losses are taken into account. With the corporate world dealing with thousands of attacks on a daily basis, an efficient cyber-security strategy definitely pays off.

“Businesses understand the threat clearly: 59% of SMBs and 62% of enterprises say they will improve their security regardless of the ability to measure return.”

The report said businesses are to increase their IT security budgets by 14% over the next 12 months. It added that SMEs typically spend around 18% of their total IT budget on security, while big companies allocate 21% of their total spend on average. The most frequent cost incurred is hiring extra staff to deal with the consequences of a breach.

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