Large enterprises pay an average of $591K per security incident in the Middle East, South Africa

Kaspersky Lab’s recently launched study in partnership with B2B International named ‘IT Security: cost-center or strategic investment?’ reveals the five IT security incidents that have the most severe financial impact on organisations in the Middle East, Turkey and South Africa.

The report states that in 2017, enterprises in these regions paid up to $1.5M for incidents involving electronic data leaks from their internal systems, and more than $1M for incidents affecting suppliers that they share data with. Meanwhile, SMBs lost $141K when employees used IT resources inappropriately and $118K when there was an incident affecting infrastructure hosted by a third party.

Even though the cost of a cybersecurity incident is growing, the report shows that the proportion of IT budgets spent on IT security in the META region is declining: 62% of companies in the Middle East, Turkey and South African regions are investing in cybersecurity, which is 3% less than last year. The average IT security budget for enterprises dropped from 23% of IT budgets to 19% in 2017. This is a concern for businesses, especially as it can be very costly for a business to recover from an IT security incident. This year, large enterprises in the region paid an average of $591K per security incident, while SMBs faced an $88K bill per attack.

“Overspending on cybersecurity is not the way forward. Rather, it is important for organisations to choose the right security vendor that will correctly address their cybersecurity needs. However, threats in this part of the world are moving fast and the costs associated with cyber incidents are constantly rising. It is therefore becoming critical for organisations to invest in threat intelligence services, and combine these with the most appropriate security solutions that will mitigate potential harm”, said Maxim Frolov, Managing Director for the Middle East, Turkey and Africa at Kaspersky Lab.

Kaspersky Lab recently introduced the Kaspersky IT Security Calculator – a tool to assist businesses in developing solid IT security strategies, looking at the cost of IT security based on average business budgets (by region, industry and company size), security measures, the major threat vectors, money losses and tips on how to avoid a compromise.

 

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