Companies Boost Cybersecurity Budgets Amid Rising Financial Losses from Cyber Incidents

Kaspersky’s IT Security Economics Report Highlights the Growing Need for Advanced Cyber Defense Across Businesses of All Sizes and Regions

Amid escalating financial losses from cyber incidents, companies worldwide are ramping up their investments in information security, according to Kaspersky’s annual IT Security Economics report. The comprehensive study sheds light on the financial challenges, budgetary trends, and evolving threats shaping IT security strategies globally.

The survey, conducted among IT and IT security professionals in 27 countries spanning Europe, the Asia-Pacific region, the Middle East, Türkiye, Africa (META), and the Americas, highlights the following:

Budgetary Growth: Companies plan to increase IT security budgets by up to 9%. For large enterprises, the median cybersecurity budget stands at $5.7 million, compared to an overall IT budget of $41.8 million. SMBs, with more modest resources, allocate $0.2 million to IT security from a total IT budget of $1.6 million.

Incident Frequency and Financial Impact:

Large Enterprises: Experienced an average of 12 cyber incidents in the past year, incurring recovery costs of $6.2 million—1.1 times higher than their IT security budgets.

SMBs: Faced 16 incidents on average, with remediation costs of $0.3 million—1.5 times their allocated IT security budget, underscoring their vulnerability.

META Region: Organisations reported an average of 13 incidents, with South Africa experiencing a higher average of 19 incidents per year.

Challenges Driving Cybersecurity Spending

The report identifies three primary factors driving increased cybersecurity investments:

Evolving Threat Landscape: Increasingly sophisticated cyberattacks demand advanced detection, automation, and response tools.

Regulatory Pressures: Governments’ growing focus on digital sovereignty has led to stricter regulations, necessitating greater compliance costs.

Rising Salary Expectations: The demand for skilled cybersecurity professionals is pushing up wages, further inflating cybersecurity budgets.

Recommendations from Kaspersky

To address the diverse and growing range of cyber threats, Kaspersky advises businesses to:

Implement Advanced Cybersecurity Solutions: Use comprehensive tools like the Kaspersky Next product line for real-time protection, threat visibility, and response capabilities.

Adopt Managed Security Services: Services such as Kaspersky Managed Detection and Response provide 24/7 protection, leveraging real-time corporate data analysis to defend against complex attacks.

Enhance Employee Awareness: Invest in cybersecurity training platforms, such as the Kaspersky Automated Security Awareness Platform, to reduce the risk of human error.

Global Cybersecurity Landscape and Future Directions

The findings reinforce the urgency of bolstering cybersecurity defenses across all business segments. While large enterprises grapple with the complexity of managing extensive IT infrastructures, SMBs face disproportionate financial risks due to limited resources and preparedness.

The report also highlights the global nature of the challenge, with countries like South Africa experiencing a high frequency of incidents. This underscores the need for tailored cybersecurity strategies that consider regional nuances.

Accessing Additional Insights

For a deeper dive into IT security costs and strategies, businesses can explore Kaspersky’s interactive IT Security Calculator or download the full IT Security Economics report. The report provides a granular view of cybersecurity trends across countries including Brazil, China, Egypt, Germany, India, Saudi Arabia, South Korea, and the US, among others.

As cyber threats grow more sophisticated, the findings underline the importance of proactive investment in cybersecurity as a critical business priority.