Timely software updates can cut business data breach costs in half: report

Enterprises in the META region running outdated technology can lose 16 per cent more money when they suffer a data breach compared to those who update judiciously, a new report by Kaspersky reveals.

For small and medium-sized businesses, the difference is even starker with up to 54 per cent more in losses, the report adds.

The issue of obsolete and unpatched software is quite common and important for businesses to address since nearly half of organisations (55 per cent) use at least some form of out-of-date technology in their infrastructure.

While vulnerabilities are inevitable in any software, regular patching and updates can minimise the risk of exploitation. That’s why users are always advised to install the latest software versions as soon as they are available, even if these updates can sometimes be difficult or a time-consuming task.

If a data breach happens, enterprises with any form of outdated technology, including unpatched operating systems, old software and unsupported mobile devices, can suffer an additional $158,000 in financial damage, taking losses to an average of $1.152m. This is 16 per cent more than the cost for companies with completely updated technologies ($994,000). Small and medium-sized businesses on the other hand can lose an additional $33,000. The total cost rises to $122,000 – 36 per cent more compared to $89,000 for businesses with all required updates installed.

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“Any additional costs for business are of course critical, especially now; the global economic situation is unstable because of the pandemic and investments in IT and IT security are predicted to decrease,” Sergey Martsynkyan, head of B2B Product Marketing at Kaspersky observed.

“This year’s ‘IT Security Economics’ report offers strong reasoning why the issue of obsolete software is so important. Even if it is impossible to get rid of it overnight, there are still some measures to mitigate the risk. Companies can not only save money but also avoid other potential consequences – which is crucial for any business,” he added.