A new Barracuda Networks report reveals that nearly four out of five companies suffered an email security breach last year, with slow response times dramatically increasing the likelihood of a subsequent ransomware attack. The average cost to recover from a single incident now exceeds $200,000.
Small business, big bill: The financial burden hits smaller companies hardest. For firms with 50 to 100 employees, the recovery cost breaks down to a staggering average of nearly $2,000 per employee, while larger companies saw an average cost of just $243.
The ransomware connection: The report draws a direct line between slow response and escalating threats. Companies that took nine hours or more to address an email compromise had a nearly 80% chance of also being hit with ransomware, yet more than half of all breaches go unnoticed for at least the first hour.
The first domino: "Email security is no longer just about stopping spam or mass phishing — it’s about preventing the first domino from falling in a cyberthreat chain that could end in operational paralysis, data loss, reputational damage and longer-term business impacts,” said Neal Bradbury, Chief Product Officer at Barracuda.
A cocktail of modern challenges—including sophisticated AI-driven phishing, a persistent skills shortage, and a lack of automation—is making rapid response difficult. For businesses, the message is clear: investment in automated detection and response is no longer optional for cyber resilience.
The global breach statistics tell a grim story, but the crisis is playing out uniquely in high-growth markets like India, where 75% of organizations faced a breach and a majority cited advanced evasion techniques as their top challenge.
