Cybercrime is costing one in two Australian businesses an average of $600,000 each year, according to a new report from global technology firm Dell Software.

This figure represents the individual cost per business, which is a troubling figure for many small to medium enterprises who would struggle to cover this expense without comprehensive business insurance.

The numbers are even harsher for businesses operating in the financial sector, where almost three-quarters of organisations have reported breaches of an average cost of $741,744 each year.

Published by Insurance and Risk on March 5, Dell Software’s latest cyber security survey shows a large number of Australian businesses need to be doing more to protect themselves from cybercrime and unwanted intrusions.

Dell Software Australia General Manager Ian Hodge urges companies to consider a new approach to cyber security, where security measures are integrated into all levels of on an online system.

“Traditional security solutions can defend against malware and known vulnerabilities but are generally ineffective in this new era of advanced, previously undetected threats from both outside and inside the organisation,” he explained.

“These threats evade detection, bypass security controls, and wreak havoc on an organisation’s network but despite these dangers, our study found, among those surveyed, organisations are just not prepared.”

As well as investing in comprehensive cyber security measures, businesses are encouraged to review their business insurance policy to ensure they are covered if and when a cyber intrusion occurs.

Impending changes to the Privacy Act have made it even more crucial for Australian businesses to protect their customers’ personal information along with their own organisational data. Organisations that fail to comply with the March 12 amendments to the Privacy Act will incur fines of up to $1.7 million.

If you believe your company may be at risk of a cybercrime and you would like more information on data intrusion and business interruption insurance, contact the MGA Insurance Brokers team today.