When you hear the slogan "IT security"What comes to mind? Most often, these are antiviruses, firewalls, and perhaps passwords for computers or servers. Many companies—especially smaller and medium-sized ones—understand data protection in this way. We install antivirus software, configure the router, and… we feel safe. Unfortunately, this false sense of security can be very costly—sometimes even hundreds of millions of dollars.
Why? Because True IT security doesn't start with technology – it starts with people, procedures and threat awareness. Even the best security systems won't help if someone in the company clicks on a fake email, provides login details to someone impersonating an employee, or ignores the need to update software.
That's why in this article we'll look at, how wrong is the belief that "it is enough to have systems"We'll show you why a lack of procedures, training, or competent IT support can paralyze a company and lead to huge financial and reputational losses.
Why is software alone not enough?
Protective systems such as firewalls and antiviruses are an important element of security, but only work when properly configured and updated. If a company does not have procedures and oversight of how they are used, they may become useless.
Example?
Imagine your company buying a modern safe for its most important documents. The safe is sturdy and burglar-proof, but… someone writes a code on a piece of paper and sticks it to the door. Does the safe then really protect your data?
It works similarly in the IT world. You can have the best systems, but if the organization lacks awareness, procedures and control, threats will find their way in anyway.
People as the weakest and strongest link
These are people – your employees – who are at the same time the greatest threat and the most effective line of defense.
• One thoughtless click on a suspicious link is enough for a company to be infected with a virus that encrypts all data.
• All it takes is one unverified phone call for someone impersonating a client or colleague to gain access to confidential information.
But at the same time, that's what conscious employee can stop an attempted attack – recognize a fake email, report unusual behavior in the system, and ensure strong passwords.
That's why they are so important cybersecurity training, simple and practical procedures, as well as clear rules regarding access to data.
SMEs – companies that often risk the most
Small and medium-sized businesses are particularly vulnerable to IT attacks and errors today. Large corporations have entire security departments and ongoing audits, while SMEs often one person is responsible for "everything related to computers"Sometimes it's even an ordinary office worker who knows a little more about computers than the rest of the team.
The problem is that Criminals are increasingly attacking such companies. They know that there are no procedures, no training, and that passwords are often written on cards or sent by email.
Moreover, a system failure or data loss in a small company can be much more severe than in a corporation – because every day of downtime means a real loss of customers, money and reputation.
True IT security is a strategy, not a product
IT security in the company should be treated as as a process, not a one-time purchase of software, This:
• procedures – clear policies regarding passwords, access, updates and incident response,
• training – regularly making employees aware of threats and good practices,
• IT audits – checking if everything is working properly, if the systems are up to date and backups are working,
• expert support – i.e. an external IT team that responds quickly and provides advice before a problem occurs.
In the next chapters we will take a look at real stories of gigantic losses resulting from human error and negligence in IT security. You'll see how a single unverified phone call or missing update can cost hundreds of millions of dollars.
And most importantly – we will advise you, how to avoid such mistakes in your company, even if you do not have an extensive IT department.
Why do companies still fall victim to cyberattacks and IT errors?
It would seem that in 2025 every company knows how important it is IT security in the companyThe media constantly reports on data breaches, costly ransomware attacks, and companies losing millions due to technological errors. Yet, thousands of businesses—including small and medium-sized ones—continue to fall victim to cybercriminals or simple IT negligence.
Why is this happening? The most common reasons have surprisingly little to do with a lack of technology – and a lot to do with a lack of awareness, procedures and responsibility for safety.
Lack of IT security policy
In many SMBs, policies regarding passwords, system access, and updates simply don't exist. Each employee decides how to set their password, whether to install updates, and with whom they share files.
The lack of clear guidelines creates chaos—an ideal environment for cybercriminals. As a result:
• the same passwords are used for multiple systems,
• former employees' accounts are still active,
• data is sent via e-mail without any encryption.
IT security policy does not have to be complicated – it is a set of simple rules that define, how the company protects its data and who is responsible for what.
Ignoring updates and patch management
One of the most common reasons for attacks is a lack of software updates. Example Equifax from 2017 showed that Ignoring a critical security patch led to the data of 147 million people being leaked.
Why don't companies update their systems?
• Because "it works, so we don't touch it."
• Because there is no one who supervises this process.
• Because updates can temporarily stop the system from working, they are postponed until later.
The result? The security hole remains open for weeks or months—until someone finally exploits it.
Lack of training for employees
Technology won't protect a company if employees don't know how to use it. Meanwhile, in many SMEs cybersecurity training never took place.
Do employees in your company know:
• how to recognize a fake email from a cybercriminal?
• what to do when they receive a suspicious attachment?
• how to report a security incident?
Most companies assume that "everyone knows how to use a computer." This is a mistake. Hackers most often attack people, not systems.
Too much trust in IT suppliers
Example Clorox vs. Cognizant (2023) he perfectly demonstrated that IT outsourcing does not release the company from responsibility for securityA third-party vendor reset passwords without verifying identity, allowing criminals to take over Clorox's infrastructure and cripple the company.
Companies often assume that "if we have an IT subcontractor, security is no longer an issue for us." This is simply not true.
• You should verify the competences of IT suppliers,
• establish clear safety procedures,
• and regularly audit their activities.
No backups or restore tests
Backup is essential – but Many entrepreneurs believe that if data is saved "somewhere in the cloud", it is safe. Unfortunately, a backup is only as good as its successful restoration.
Worse still, many companies do not have regular backups at all – and in the event of a failure, hacking or ransomware attack, this means losing months of work and customer data.
Thinking "it doesn't concern us"
Many SME owners believe their company is "too small" to be attacked. This is a myth – it doesn't affect them until it happens to them. Cybercriminals are increasingly targeting them. automate attacks, scanning thousands of companies for vulnerabilities. If a company lacks basic security measures, it becomes an easy target.
Why is this happening in SMEs?
The reason is simple – lack of resources and competencesSmall businesses rarely have a dedicated IT department. Security is the responsibility of "someone who knows computers." The result?
• Lack of policies and procedures.
• Lack of training.
• Lack of regular audits and updates.
Such companies take risks not only a cyberattack, but also costly downtime, loss of data and customers.
In the next chapter we will look at three spectacular stories of IT security failures that cost companies hundreds of millions of dollarsThanks to them, you will see how even a small act of negligence can trigger an avalanche of losses.
3 Costly IT Security Mistakes – Real-Life Examples
Stories of large companies that lost hundreds of millions of dollars because of errors in the IT area, are the best proof that security is not only a matter of technology, but also competences of people, procedures and good work organizationBelow, you'll find three high-profile cases that demonstrate how even a single ill-considered decision or omission can bring a company to the brink of collapse.
Clorox vs. Cognizant (2023) – $380 million in losses due to lack of verification
What happened?
Clorox, a well-known American manufacturer of cleaning products, outsourced IT support to Cognizant. The provider was responsible for password management and help desk support, among other things. On August 11, 2023, cybercriminals repeatedly contacted Cognizant support, impersonating various Clorox employees.
Despite clear safety procedures in place, Cognizant employees reset passwords and granted access without any identity verification, even for IT security department accounts.
Consequences for the company:
• stopping production in plants,
• paralyzed supply chains and delays in order fulfillment,
• product shortages on shelves across the United States,
• costly reconstruction of IT infrastructure and corrective actions,
• serious reputational crisis and decline in revenues.
Total losses were estimated at approximately $380 million, including at least 49 million for remedial measures alone.
What does this story teach us?
Safety procedures are useless if employees cannot put them into practice. The lack of training and identity verification has opened the door for cybercriminals to the entire IT infrastructure.
Equifax (2017) – the largest data breach in history
What happened?
Equifax, one of the largest credit data collection companies, received a global alert in March 2017 about a critical vulnerability in Apache Struts software. Despite an available security patch, the company did not update the system.
The vulnerability allowed hackers to take over the production server and steal personal data of 147 million people for two months without being noticed, including Social Security numbers, addresses and driver's license numbers.
Consequences for the company:
• immediate reaction of the stock exchange – a sharp drop in the value of shares,
• loss of customer trust and the necessity of resignation of the entire management board,
• class action lawsuits and court settlement for the amount of $575–700 million,
• hundreds of millions allocated for credit monitoring and support for victims.
What does this story teach us?
Ignoring updates is a surefire path to disaster. Patch management is a key element of IT security in a company., and its absence can destroy even the largest corporation.
Knight Capital Group (2012) – $440 million loss in 45 minutes
What happened?
Knight Capital, an automated stock trading company, has implemented a new version of its software. On one of its eight servers code not updated – the old “Power Peg” feature remained and was not properly disabled.
Within 45 minutes the system executed hundreds of thousands of uncontrolled transactions, generating huge buy and sell orders in 154 companies.
Consequences for the company:
• $440 million in losses in less than an hour,
• the company lost 75% of its stock market value in a few hours,
• the need to adopt a "rescue investment" to avoid bankruptcy,
• Knight Capital's reputation was completely ruined.
What does this story teach us?
Implementation errors and lack of testing can be as costly as a cyberattack. Every company should have change management procedures, test changes and have a contingency plan in case of problems.
What do these 3 stories have in common?
In each of these cases The problem was not the technology itself, but the lack of procedures, awareness and responsibility.
• At Clorox, IT workers reset passwords without verification, despite existing security policies.
• Equifax ignored a critical update even though there was a global alert.
• Knight Capital implemented a new system without full testing, leading to uncontrolled trading and massive losses.
This shows that IT security in a company is not a "purchased product", but a process in which people, procedures and continuous control count.
How does this translate into activities in your company?
1. Procedures must be realistic and applicable
It's not enough to have an "IT Security Policy" if employees don't know and use it. It's worth:
• conduct short training courses reminding about safety rules,
• regularly check that procedures are being followed in practice.
2. Updates are a must, not an option
Every system—from computers to cloud applications—requires regular patching. Lack of updates is the most common route to attack. It's best to designate a person or company responsible for patch managementto make sure nothing is missed.
3. Test every change
Every IT implementation should be tested before being launched in production. Even a minor configuration error can bring a company to a halt. It's worth having change management procedures and a contingency plan in case of unforeseen problems.
4. Training is the cheapest form of protection
An informed employee is better protection than the best antivirus. Regular cybersecurity training teaches how to recognize phishing attempts, use email safely and report incidents.
5. Expert support is an investment, not a cost
For many SMEs, it's more cost-effective to outsource security to an external team that manages procedures, updates, backups, and training. This reduces the risk of errors and allows them to focus on running their business.
How to build IT security in company – practical tips
IT security in your company doesn't have to mean expensive investments in advanced systems. Implementation is key. proven principles and good practicesthat reduce the risk of errors and attacks. Below you'll find specific steps you can implement in your company, even if you don't have a large IT department.
Develop and implement an IT security policy
Every company should have a document that clearly states:
• how to create and store passwords,
• who has access to what data and systems,
• how to report security incidents,
• how often to perform updates and backups.
An IT security policy is fundamental – it provides employees with clear rules and limits the risk of chaotic actions during a crisis.
Take care of password and access management
Strong, unique passwords are essential, but even more important is:
• using multi-factor authentication (MFA),
• immediate blocking of former employees' accounts,
• limiting access to only necessary resources.
It is also worth using password managers – they allow you to create secure logins and manage them easily.
Cybersecurity training for employees
People are the most common cause of successful attacks. Regular IT training they teach:
• how to recognize phishing and fake messages,
• what to do in case of suspicious attachments,
• how to safely use email and company systems.
Such training does not have to be complicated – a few hours of practical examples are enough to significantly increase employee awareness.
Regular updates and patch management
Make sure that all systems – from employee computers to servers – were constantly updatedIt's best to include a schedule for updates and the person or company responsible for the process.
Lack of updates is one of the most common reasons for successful cyberattacks.
Backups and restore tests
Backing up your data is one thing – being able to quickly restore it is another. It's worth:
• create automatic backups on external media or in the cloud,
• regularly check whether the data can be restored,
• keep copies offline (disconnected from the network) to protect against ransomware.
IT audit – security check
It's worth doing it once in a while IT audits – they verify that procedures are being followed, systems are up-to-date, and data is properly protected. They also provide an opportunity to uncover unnecessary access or security gaps.
Cooperation with a trusted IT partner
If your company does not have security specialists, it is worth cooperating with a company that:
• will take over responsibility for IT support,
• will assist in developing policies and procedures,
• will ensure quick response to failures and incidents.
Professional support is not only about installing systems, but above all counseling and prevention, thanks to which you will avoid costly mistakes.
Thanks to these steps even a small company can significantly improve its IT security, without investing huge amounts of money in expensive solutions. The most important thing is to treat security not as a one-time action, but a continuous process that combines people, procedures and technology.
Why is it worth outsourcing security to a professional IT company?
Ensuring IT security within a company requires not only technical knowledge but also experience in developing procedures, training employees, and responding to incidents. For many small and medium-sized businesses, maintaining an in-house IT department is simply not cost-effective—and hiring a single person responsible for "everything" is a huge risk.
That is why more and more companies decide to entrust service and IT security external specialistsThis solution combines professional support with predictable costs and provides access to competencies that cannot be acquired alone.
An experience that no book can replace
We have been cooperating with companies for years from various industries – from sole proprietorships to companies employing over 200 people. Thanks to this, we understand that every business has different needs, different budgets, and different IT security priorities.
We deal not only with technology, but above all solving real company problems – from system implementations, through data security, to the creation of incident response procedures.
A comprehensive approach to security
IT security isn't just about antivirus and firewalls. That's why we help our clients with:
• development IT security policy,
• access and password management,
• creating and testing backups and emergency plans,
• cybersecurity trainingwhich increase employee awareness,
• regular IT audits to ensure systems always comply with best practices.
Thanks to this, we provide protection not only against cyberattacks, but also against errors that can paralyze a company as effectively as hackers.
Experienced and competent team
Our strength lies in our people – our team consists of specialists with many years of experience who know how to talk about IT in simple and understandable language.
Thanks to this, our clients not only receive technical support, but also clear explanations and real recommendations, how to increase company security in practice.
Quick response and flexibility
We understand that time is of the essence in small and medium-sized businesses. That's why we focus on efficient communication and real accessibility – we accept applications not only through the system, but also by phone, email or via instant messaging (WhatsApp, Teams).
Our goal is for you to never had to worry about the operation of IT systems – because we know that downtime costs real money and nerves.
Why is it worth it?
Outsourcing IT security means that:
• you have access to a team of experts instead of one person "for everything",
• you don't have to worry about updates, backups or training – we do it for you,
• you pay a predictable amount for full support, instead of bearing the costs of unforeseen failures.
Working with us is not only about solving IT problems, but also the certainty that your company is prepared for any threat – from cyberattacks to failures or employee errors.
In the next part we will answer frequently asked questions about IT security in companiesto dispel doubts and show how easy it is to start taking care of the protection of data and systems.
Frequently asked questions
Does every company need an IT security policy?
How often should employees be trained in cybersecurity?
Is cloud backup enough as the only data protection?
What are the most common password management mistakes in companies?
How much does an IT security audit cost for a small business?
Is IT outsourcing safe for your company?
The stories of Clorox, Equifax, and Knight Capital show that even the best systems cannot replace competent people, clear procedures and regular monitoring. Lack of updates, training or testing can cost a company millions – and in the case of SMEs, mean a serious crisis or loss of customers.
IT security is a process that requires planning, awareness, and responsibility. If you want to ensure your company is prepared for failures and cyberattacks, it's worth trusting the experts.
If this topic concerns your company, please contact us. We'll be happy to help you implement effective security procedures, train your employees, and ensure data protection.
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