Manufacturers’ £2.12 billion security testing bill

The high cost of protecting against cyberattacks has been revealed, with the manufacturing industry forking out around £2.12 billion annually to combat the growing threat of data breaches and system outages.

Research from Avord, a new security testing platform, has revealed that 89% manufacturers have seen an increase in the number of data breaches over the last five years.

“Opportunistic multi-national consultancies are being blamed for inflating the price of security testing in the UK,” Avord said, “with many manufacturers being charged inflated prices to conduct tests on their critical assets. And with increasing fines for manufacturers found to be in breach of industry regulations, the cost of hacking can be huge.”

Avord said that the findings put the spotlight on the security testing market, which is dominated by consultancies that provide services to businesses, sometimes at twice the daily rate of an independent tester – often referred to as ethical hackers.

“With 77% of UK businesses claiming the cost of testing is too expensive, there is a clear demand for change,” Avord said.

Over three quarters of manufacturers outsource their cybersecurity testing according to the research, with 73% increasing the level of security testing on the Internet of Things (IoT).

Forty percent of manufacturing companies have battled an online security breach in the past 12 months, which have directly hit their bottom lines through costly fines and loss of business.

However, with cyberthreats constantly evolving and changing, nearly three quarters said that approving the target and regularity of testing is the biggest difficulty when it comes to cybersecurity.

Over the past five years, the majority of companies have seen a major increase in the number of data breaches: one in five reported an increase of between 11% and 20%, while more than a half reported up to 10% more data breaches.

The impact of breaches in the past 12 months has been widespread, with 85% experiencing a fine from regulators and 78% reporting a loss of customers. Almost all companies confirmed that the breach was at least partially due issues in the security testing process.

Avord’s free online platform brings thousands of security testers together with UK businesses. Established by two career security professionals, who have seen the market monopolised by major consultancies, it will enable companies to reduce their costs by 30%-40%.

Brian Harrison, founder and CEO of Avord, said: “Avord has been designed to disrupt the current security testing model by cutting out the costly middle-man consultancies and allows businesses to directly manage and engage security testers. This means that whereas industry currently pays up to £1,100 per day for cybersecurity testing, that cost will be reduced to approximately £600, collectively saving UK businesses around £3 billion annually.”