Heading into the new year, many businesses look at their budget, finding places where they can optimize their spending to best prime themselves for financial success. One area where business leaders must not skimp is cybersecurity, as 41% of small businesses fell victim to a cyber attack in 2023. Without budgeting for cybersecurity measures, businesses could find themselves among that unfortunate number.
According to IBM, the average cost of a cybersecurity breach was $4.88 million in 2024 — a 10% increase over 2023 and a statistic that is expected to increase even further heading into 2025 and beyond. Although this staggering figure is more accurate for larger organizations, it nevertheless highlights the extent of the impact a cyber attack can have on businesses, whether from direct losses or indirect losses in the form of lost business or even lawsuits. In the case of small businesses, many don’t survive more than six months after a major data breach.
Considering the devastating consequences and costs that a cyber attack can have on a business, leaders should see cybersecurity as a long-term investment. By investing in cybersecurity, they are essentially insuring themselves against the consequences of potential future attacks and giving themselves the invaluable peace of mind that their businesses’ data is safe from falling into the hands of wrongdoers.
Protecting business assets with cybersecurity measures
Implementing thorough cybersecurity measures allows businesses to proactively protect their valuable assets, including their data and intellectual property. Many companies manage and store sensitive and confidential data, including customers’ identifying and financial information, which make for valuable targets for wrongdoers and can be dangerous if they fall into the wrong hands. Some cybercriminals even attempt to steal proprietary information to use or sell for their own gain.
However, one of the most important assets a business has is not a physical one — it is its reputation. Businesses that fall victim to a cyber attack because they fail to implement proper cybersecurity practices and measures will lose the trust of their customers, clients, and partners. This reputational damage could have significant consequences, including loss of business. And once this trust is lost, it is incredibly difficult to regain it.
Cyber threats evolved in 2024
A significant factor in why cybersecurity should be a chief concern for businesses in 2025 is the increased prevalence and complexity of cyber threats. Technologies like artificial intelligence are advancing rapidly, making cyber threats more difficult to detect and address.
For example, scammers can now use generative AI technology to improve their phishing attacks by creating more convincing fraudulent messages. Other cybercriminals might use AI to automate attacks and constantly probe networks for vulnerabilities. This makes a proactive approach more critical than ever, as once a cyber attack has occurred, it is often too late to prevent serious harm.
At the same time, many companies are increasing the complexity of their digital networks and systems. As trends like digitalization and remote work continue to gain prominence, businesses are also inadvertently introducing new points of vulnerability for wrongdoers to target. As a result, robust cybersecurity infrastructure and policies are necessary to preserve consistency and continuity across operations. One vulnerable access point could cause the entire network to collapse after a cyber attack.
That’s not to mention the fact that many jurisdictions are subject to stricter regulations surrounding cybersecurity than ever before. Businesses must remain in compliance with these guidelines and laws or face potential fines or penalties. And with many new laws going into effect in the new year — including (but not limited to) the Texas Data Privacy and Security Act and the Nebraska Data Privacy Act — businesses must pay close attention to any local, state, or federal regulations that may be changing and determine what needs to be done to adequately protect data.
Human error plays an increasing role in cybersecurity issues
As companies seek to deploy effective cybersecurity measures, they must address the risk of human error. Recent studies have shown that 74 percent of data breaches are caused by human error. Companies that don’t help their employees develop an increased awareness of cybersecurity issues and equip them to respond to threats fail to address a key vulnerability.
Effective cyber planning for 2025 will include budgeting for initiatives that contribute to a strong cybersecurity culture, such as ongoing training and platforms that allow employees to provide feedback and reporting on cybersecurity issues. Empowering a “security-by-design” approach, which considers cybersecurity vulnerabilities in all of a company’s operations, is also crucial for addressing the human factor in cybersecurity. Employees in any department, from HR to customer support to physical security, can all unwittingly play a role in facilitating a breach if they are not adequately equipped to repel attacks.
Why cybersecurity measures are essential to business growth
As businesses grow in the age of big data, cybersecurity should become an increasingly prevalent concern because they are producing, handling, and storing increasingly large amounts of data. Businesses that hope to grow effectively should look for scalable solutions that address the evolving cybersecurity needs of a growing organization. Thankfully, many cybersecurity providers offer flexible solutions that are customized to the needs of a particular business, allowing them to pay for precisely what they need.
Indeed, in an era of increasing data complexity and more sophisticated cyber attacks, investing in cybersecurity is no longer a luxury but a necessity. In 2025, businesses must include cybersecurity in their budgets, or they risk facing even greater expenses after a cyber attack. After all, the best way to avoid the devastating consequences of a cyber attack is to avoid falling victim to one in the first place, so there is no better time to beef up your cybersecurity than now.
