Why Ignoring Penetration Testing Could Cost You Millions

Cyber Offensive Security
Written By Shane Bell

Source: NSB Cyber

 

Imagine waking up to find your company’s sensitive data stolen, customer accounts compromised, or critical systems offline. 

In today’s digital world, the prevalence of cyber attacks continues to prove that it’s a matter of when not if. Organisations that fail to proactively identify vulnerabilities expose themselves to financial loss, regulatory penalties, and lasting reputational damage.  

This is where penetration testing comes in especially when weighed against the cost of a data breach.  

The Cost of an Incident 

According to IBM's Cost of a Data Breach Report 2025, the global average cost of a data breach is USD $4.44 million, with even higher costs in industries such as healthcare and finance. These figures don’t include long-term impacts like customer churn or regulatory fines under GDPR or HIPAA. Simply put, the cost of neglecting security testing far outweighs investing in cybersecurity. 

For the first time in five years, the global average cost of a data breach declined, dropping 9% from USD $4.88 million to USD $4.44 million. This positive improvement is attributed to faster detection and containment. The average breach lifecycle (time to identify and contain an incident) reached a nine-year low of 241 days, reducing escalation costs and saving organisations an average of USD $1.9 million per breach, alongside an 80-day reduction in breach lifecycle. 

This is overall a positive step for cybersecurity to see the average cost go down. But let’s be clear, USD $4.44 million is still an eye-watering amount for an organisation to withstand. 

As Dmitri Alperovitch once said: “There are only 2 types of companies: those that know they’ve been compromised, and those that don’t know yet”. 

So why Penetration Testing? 

Penetration testing is not a hardening control for an environment and would not technically prevent or disrupt a cyber incident (on its own). So why should an organisation invest in penetration testing? 

Think of it like going to the dentist. It’s uncomfortable, you probably delay it, and the tools can seem intimidating. But you leave with peace of mind, clear advice, and healthier teeth. Skip it too long, and you risk cavities, root canals, and much bigger bills. 

The same concept applies to penetration tests and your security posture. You should have that security validation that you’ve identified and addressed your technical gaps. Or at the very least, know what your technical gaps are so you can start on the journey to remediate them, applying hardening controls in place. A regulator would take quite a dim view if your defence after a cyber incident was “I didn’t know what my gaps were, and I didn’t care to find out”.  

But what does Penetration Testing have to do with reducing the cost of a breach?  

Let’s take a very hypothetical scenario. These numbers would vary quite differently depending on the target organisation, their risk profile, their IT estate, and their specific penetration testing requirements.  But let’s entertain this for a moment.  

Consider BigCorp Industries, a food packaging and distribution company that is headquartered in Melbourne, Australia. Their IT infrastructure contains the following components: 

  • Public-facing website: Showcases BigCorp’s products and services; clients can log in, place orders, and provided update-to-date information. 

  • Internal web application: Used by BigCorp warehouse staff to manage client orders and shipping. 

  • Mobile application: Supports employees’ daily tasks. 

All systems are hosted using a combination of cloud and on-premises infrastructure. 

 If BigCorp invested in penetration testing, here’s what it could look like: 

Penetration Testing Effort & Cost: 

  • 2 Web Applications: 15 days pentesting effort → ~USD $30K 

  • Mobile Application: 8 days pentesting effort → ~USD $16K 

  • Assumed Breach Test: 13 days pentesting effort → ~USD $26K 

Total Penetration Testing Cost: USD $72K 

Potential breach cost: USD $4.44M 

Potential savings: USD $4.368M 

Of course, this is a simplified example. It doesn’t factor in BigCorp’s size, system complexity, revenue, or whether a breach would realistically cost them USD $4.44M. Nor does it include the cost of remediating penetration test findings. Still, the example illustrates the ROI of penetration testing: a relatively small investment can help prevent catastrophic financial loss and reputational damage. 

Final note 

Don’t wait to become an IBM “Cost of a Data Breach” statistic; start looking into penetration testing to uncover your vulnerabilities in a realistic way. By investing in penetration testing, you can identify weaknesses, strengthen your defences, and protect your business, staff, and customers.  

Ready to be supported by an experienced cybersecurity team? Let’s start the conversation - book a meeting with us today.

Shane Bell
Previous

8 Vulnerabilities That Keep Showing Up in Our Pentests
Next

Dear IT Teams: Why Penetration Tests Are Your Best Friends, Not Foes