Third-party cyber security breaches 'cost enterprises £1.3m'

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Security firm Kaspersky Lab has warned that cyber attacks against third-party IT services suppliers are costing enterprises 1.3 million a year.

The issues stems from vulnerabilities or poor cyber security in third-parties' infrastructure and the services they provide, which when breached affects both the supplier and their customers.

Security breaches in third-party infrastructure alone cost enterprises around 1.2 million, Kaspersky said.

"Raising IT security budgets is only part of the solution, as the most staggering losses stem from the incidents involving third parties and their cyber-failures," said Alessio Aceti, head of the enterprise business division at Kaspersky Lab.

"While cyber security incidents involving third parties prove to be harmful to businesses of all sizes, their financial impact on a company has the potential to result in twice as much damage.

"This is because of a wider global challenge with threats moving fast, but businesses and legislation changing slowly. When regulations like GDPR become enforceable and catch up with businesses before they manage to update their policies, the fines for non-compliance will further add to the bill."

And the situation is potentially set to get more complex as governments across the globe push to introduce new legislation on data regulation and cyber security.

Kaspersky also pointed out that despite cyber security receiving a higher proportion of IT budgets, overall budgets for technology have come down, which could mean that investment in cyber security software and services is actually being reduced.

This can be seen as concerning given the cost of security and data breaches to an enterprise has gone up, according to Kaspersky.

All this suggests that companies investing in security should proceed with caution, making sure the services they procure and use are robust enough to resist and recover from cyber attacks. And they should remember that investment in security services is far less costly than dealing with the consequences of a cyber attack or data breach.

Picture: Bigstock

Roland Moore-Colyer

Roland is a passionate newshound whose journalism training initially involved a broadcast specialism, but he’s since found his home in breaking news stories online and in print.

He held a freelance news editor position at ITPro for a number of years after his lengthy stint writing news, analysis, features, and columns for The Inquirer, V3, and Computing. He was also the news editor at Silicon UK before joining Tom’s Guide in April 2020 where he started as the UK Editor and now assumes the role of Managing Editor of News.

Roland’s career has seen him develop expertise in both consumer and business technology, and during his freelance days, he dabbled in the world of automotive and gaming journalism, too.