Report: Cybersecurity Budgets Nearly Triple as Costs for Cyber Attacks Rise

February 17, 2023by TNTMAX

Businesses of all sizes and across all industries are taking cybersecurity more seriously and assessing their cybersecurity budgets. A report from Hiscox found that the median IT budget for cybersecurity has more than doubled from $50,000 in 2018-2019 to $129,000 in 2021-2022. 

Overall, IT budgets have increased over the years with 23% now being allocated to cybersecurity, compared to 10% in 2018. 

The cybersecurity budget increases come as costs related to cyber attacks seem to be rising. Whether it be costs to recover and repair after an attack or to invest in preventative measures, net profits are being affected. The median cost of cyber attacks within a year has increased from $10,000 in 2018-2019 to $16,950 in 2021-2022. The period of 2019-2020 marked a record high for the cost of cyber attacks, with the highest reported single cost being $67,050. 

Notably, the number of dedicated cyber security roles at companies has stayed the same across all reports. However, though the number isn’t increasing, the budget is. And these jobs don’t appear to be going anywhere anytime soon.

Cybersecurity is an essential aspect of any business, as cyber-attacks can have devastating consequences, including data loss, financial damage, and reputational harm,” said Frederic Farcy, TNTMAX President. “Business continuity planning (BCP) is an approach that helps organizations prepare for and respond to unexpected events, including cyber security incidents. Contact TNTMAX so we can help you with your BCP.” 

Another report from (ISC)² Research found that, although organizations of all sizes are bracing for staff cuts in 2023, cybersecurity teams will be the least affected by staff reductions, as organizations anticipate an increase in cyber threats in 2023.

The study examined input from C-suite business leaders concerned about the economy and found that, should layoffs be necessary, respondents expect bigger cuts in other areas of their businesses such as HR, finance, operations, marketing and sales, than in cybersecurity. Just 10% of respondents foresee reductions in cybersecurity teams, compared to an average of 20% in other areas.

Over half of respondents (51%) say cybersecurity professionals would be prioritized for hiring or rehiring. Additionally, IT is another priority (49%), with research and development (R&D) close behind (41%). 

It’s more important than ever for businesses to be prepared when it comes to cybersecurity. For all your cybersecurity needs call TNTMAX at (201) 891-8686, email us at  [email protected], and browse our website for more solutions on how to stay safe online.