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Data breaches could cost companies millions every day

(Image credit: Image Credit: Balefire / Shutterstock)

Data breaches that compromise sensitive data could cost large tech firms as much as $174 million a day (or $37.3 billion a month) according to a new report from cloud solutions firm iomart.

Analysing the financial impact of data breaches, the firm found that a large company typically loses anywhere between 10-99 million records in an incident, resulting in a 7.27 percent fall in company value.

The report explains loss in valuation corresponds with how long criminals are able to remain in the network - the longer the breach, the steeper the fall.

Tech businesses take on average 187 days to identify a breach and another 59 days to contain it. This brings the average potential loss to $42.9 billion per incident for the highest-earning tech companies, iomart claims.

Apple stands to lose the most (an estimated value drop of $95.7 billion), followed by Microsoft ($81.6bn) and Amazon ($68.7bn). Meanwhile, infringing GDPR could cost Apple up to $2.56 billion and Microsoft $1.34 billion.

For Bill Strain, Product Development Director at iomart, the findings are a “stark warning about the importance of investing in data protection.” He believes many smaller businesses are unequipped to survive the operational effects of a successful cyberattack, not to mention the financial impact.

“Looking at your potential risk and knowing where your data is, controlling who has access to it, and making sure it’s secure should be an absolute priority. It’s still the case that most cyber-attacks start by exploiting our human vulnerability. By training staff to spot suspicious emails or links you can lock the front door and then use technological solutions to ensure the hackers can’t get in around the back," he said.