“In 2023, cybercrime losses topped $10.3 billion—yet many companies are still slashing cybersecurity budgets to save costs.” – FBI Internet Crime Report
When financial pressure rises, cybersecurity often lands on the chopping block. While cutting cybersecurity budgets may seem like a quick fix, slashing security investments during uncertain times can lead to far greater costs financially, reputationally, and operationally.
The truth is: cybersecurity isn’t just a cost center — it’s a cost-saver when managed strategically.
Hard Times Mean More Crime
Economic downturns create the perfect storm for increased cybercrime. According to CXO Today, recessions amplify the risk of cyberattacks, particularly from disgruntled insiders or financially motivated individuals.
During the 2008–2009 recession, the FBI reported a 22.3% increase in online criminal activity. Similar economic stressors today may trigger the same surge.
Why Crime Spikes in Tough Times:
- Skilled tech professionals may turn to cybercrime for financial survival.
- Phishing and social engineering thrive on fear and urgency.
- Hiring freezes stall security teams, leaving SOCs (Security Operations Centers) understaffed and overwhelmed.
Cutting cybersecurity when cyber threats are peaking only compounds the risk. On the contrary, increasing security spending to bolster against such eventualities may be the smartest defense.
Think Budgets are Tight? Try Affording a Breach
To offset losses incurred by a slumping economy, cybersecurity programs seem like big, tempting targets to balance the budget. However, by doing so, organizations may trade a small problem for an even bigger one. According to IBM, the average cost of a data breach in 2024 was $4.48 million USD. And that’s just the monetary cost. Total fallout from a cyberattack extends to:
- Reputational damage
- Loss of consumer trust
- Decreased sales
- Legal fines
- Compliance ramifications
Tellingly, the findings also indicated that following a data breach, most victim companies (51%) opted to increase security investments.
Perhaps most telling, 51% of organizations that experienced a breach increased their cybersecurity spending afterward, a clear sign that investing in security before disaster strikes is the wiser move.
As Josh Davies, Security Market Strategist at Fortra, noted, “We see companies cut their security investments, but then immediately turn and say ‘Oh, we should be investing in security very quickly again’ because the minute it’s cut, that’s when their risk increases fairly significantly.” Organizations may save the cost of a few employees or a handful of solutions, but when compared with the potential expense of a critical attack, the savings are not worth the risk – monetarily or in any other way.
4 Ways Strong Cybersecurity Can Actually Save You Money
Security isn’t just about prevention. It’s also a strategic asset that protects revenue, customer relationships, and business longevity.
1. Protecting intellectual property (IP). According to The Commission on the Theft of American Intellectual Property, intellectual property theft costs the U.S. between $225-600 billion per year. For companies charged with protecting it, it’s a double loss as not only the IP value is lost, but so is the reputation of the company legally bound to secure it.
2. Securing customer data. When customer data is lost, lawsuits and compliance fines can follow. These are obvious scenarios for any money-conscious organization to avoid, especially in a climate of financial hardship. A relatively small investment in securing Personally Identifiable Information (PII) can pay big dividends in securing your customers’ confidence and therefore your company’s future.
3. Safeguarding customer trust and loyalty. A report by Cyberint notes that six out of every 10 customers would stop shopping with a retailer if that retailer had suffered a data breach. Especially in times of fiscal uncertainty, companies need to play the long game and survive to thrive another day. Jeopardizing years of hard-won credibility and customer loyalty on a few temporary cybersecurity budget cuts – especially in areas critical to the company’s success – not only risks higher costs in the immediate future but threatens to undermine your customer base.
4. Demonstrating commitment to security for stakeholders. Organizations that make it through recessions are ones that play the long game. Slashing security investments and creating more fear, risk, and insecurity at a time when the economic environment is itself unstable is not the way to instill confidence in stakeholders nor secure future funding from investors. A sudden plummet in stock price is the last thing any struggling company needs.
Defend Your Assets and Your Bottom Line
You don’t need unlimited cybersecurity budgets to maintain a strong defense. Here are cost-effective ways to protect your organization without sacrificing essential coverage:
Be proactive, not reactive
In a time of high online crime and economic unrest, defending against cyber threats should be a top priority for companies looking to survive the storm. That means sometimes taking the fight to them – or at least, to their tactics. Proactive (also known as offensive) security measures like pen testing, red teaming, and even regular vulnerability assessments can help you spot signs of weakness in your environment before threat actors do.
Maximize existing resources
Look for interoperable tools that integrate well across your stack, so current investments remain useful even as your needs evolve.
Automate wherever possible
Security automation is another great way to make resources spread and do more with less. Leaner teams can keep up with force-multiplying tools like XDR and other automated options.
Consider managed security services
Managed security solutions provide access to expert-level defense without the overhead of hiring full-time staff. Fortra’s Alert Logic delivers innovative security technology and skilled professionals, giving organizations affordable protection without compromising on quality.
Even the most advanced tools require skilled hands. Managed services bridge that gap by maximizing ROI and minimizing risk.
Cybersecurity=Business Continuity
Cybersecurity outcomes are intrinsically tied to business outcomes because security is an enabler for an organization, not a hindrance or a roadblock. Think of it like insurance: during a storm, the value of your umbrella increases. Selling that umbrella to save money doesn’t protect you from getting soaked. The same can be said of your security strategy. When economic storms are blowing, it’s the wrong time to save money by selling your umbrella.
Stay Secure. Stay Resilient.
With the right approach, companies can achieve their security goals, even with lean cybersecurity budgets. Fortra’s Alert Logic offers scalable pricing, expert-managed services, and proven outcomes to help you defend what matters most — our assets, your customers, and your future.
Learn more about how Alert Logic can support your cybersecurity goals today.
