Cost of a Breach

To Small and Medium businesses

Even a single modest breach can be devastating in terms of costs, downtime, and recovery disruption. Investing in proactive controls like user training, vulnerability assessments, and incident response planning is far less costly than recovery.

A server room on fire with flames and smoke coming from a server rack, illuminated by blue and orange lighting.

$8,000 per hour – Average cost of downtime for SMBs during a cyberattack.


Source: GGG LLP

An illustration of money falling into a black electronic device, resembling a cash deposit or money transfer scanner.
Illustration of dollar bills, a padlock, and a document, all wrapped with a chain, symbolizing financial security or protection.

$26,000 median ransomware cost – Doubled from previous years, disproportionately affecting SMBs.


Source: AP News

54% of SMB breaches cost ~$500,000, while 30% are under $100K.
Source: Dark Reading

Illustration of financial security with a shield, money, a burning document with a bug, and flames.

Average Breach Costs for Small Businesses

According to Verizon, a cybersecurity breach at a small business can cost anywhere from $120,000 to $1.24 million, depending on severity.

Tier 5 vCISO services cost a fraction of that—often less than a single breach response. We help you prevent the incident before it happens, for a fraction of the cleanup cost after.

The financial damage is only part of the story. A breach can also cause lasting reputation damage, loss of customer trust, and expose your business to fines, lawsuits, and regulatory investigations.

Protecting your revenue and reputation starts with a clear, expert-led security strategy—not a reaction to disaster.

What is a breach?

A breach in cybersecurity refers to any incident where unauthorized individuals gain access to data, systems, or networks they shouldn't be able to access. It’s a failure of confidentiality, integrity, or availability of information—often with serious consequences.

Types of Breaches

  • An attacker gains access to valid login credentials (e.g. via phishing or password spraying).

  • Exposure of sensitive data like emails, passwords, customer records, financial info, or medical files.

  • Unauthorized access to internal systems, servers, or cloud platforms—often a precursor to data theft or sabotage.

  • Attackers encrypt systems or data and demand payment for decryption access—often also stealing data before locking systems.

What Happens in a Breach

  • The attacker exploits a vulnerability (e.g., weak password, unpatched software, social engineering).

  • They move through systems, gather data, or gain control.

  • Data is exfiltrated, encrypted, or modified; systems may be shut down or surveilled.

  • Many breaches go undetected for weeks or months.

    Can be detected almost immediately with proper software configuration.

  • Investigation, notification, legal exposure, downtime, and remediation costs follow.

Examples of Common Causes