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Report: 60 percent of small businesses go bankrupt because of data loss

CompUSA founders stole millions of dollars worth of electronics while running the company. Published: 7/18/2011

A recent Business Insider article explained the importance of data protection for companies.

While data loss can affect companies of all sizes, the article relayed that 60 percent of small businesses which lose data end up bankrupt. Furthermore, those that successfully recover their compromised data spend between $2,000 and $8,000 per megabyte doing so.

Thus, companies of all sizes should ensure their data is securely protected and that their employees are up-to-date on the business' protection processes.

"Have the peace of mind that your data is secure," security expert Danesh Rao told the news source. "It should be a no brainer."

Rao further explained that small- and mid-sized companies are realizing the benefits of data protection, as the market for secure technology is set to expand by as much as 40 percent during the next five years.

Businesses experiencing data loss can go bankrupt as a result of expensive lawsuits filed against them by clients regarding professional liability, and because of the damaged image associated with the company after a massive loss occurs.  

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