Security Breaches Cost British Business a Bundle

Business in Britain is spending an estimated 10 billion pounds (US$18 billion) per year on security problems such as computer viruses, spyware, hackers and equipment theft, according to a study by PricewaterhouseCoopers, Reuters reports.

And although businesses have hiked their spending on security, the study says, the expense of security breaches in Britain is 50 percent higher than what was calculated two years ago, according to Reuters.

The number, and cost, of security breaches actually fell for most large companies, but problems increased at smaller businesses to the tune of an $8,000 to $17,000 average loss, Reuters reports.

“The cost of the damage caused by attacks on security has risen as the nature of the attacks has become more serious,” Industry Minister Alun Michael told Reuters.

While most British businesses use anti-virus programs, about 25 percent of U.K. companies don’t have spyware protection to help prevent the loss of confidential data, according to Reuters, and about 20 percent of wireless networks operate without encryption.

The study also cited the increasing number of user IDs and passwords that employees have to remember, Reuters reports.

PricewaterhouseCoopers conducted the survey for the Department of Trade and Industry, Reuters reports.

For related coverage, read When the Dike Breaks: Responding to the Inevitable Data Breach and Hacked Computers Hit With Updated Spam Tool.

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— Compiled by Dave Gradijan