5 Cybersecurity Misconceptions That Could Cost Your Business Millions

In this segment of Shane O’Donnell’s Forbes Technology Council column, Shane talks about how cybersecurity myths create costly vulnerabilities, including how SOC 2 and vCISO services benefit all industries, not just tech.

In cybersecurity, myths aren’t just harmless misconceptions — they’re expensive vulnerabilities disguised as conventional wisdom. Companies across every industry face assumptions that create confusion, actively undermine their security posture and leave their business vulnerable to attacks that can cost millions.

Based on my two decades of experience in cyber risk management, here are five of the most common, persistent and costly myths I’ve encountered — and the truth.

Myth 1: SOC 2 is just for tech companies.

The Myth: SOC 2 reports are exclusively for technology firms and require significant resources.

The Reality: SOC 2 is an independent attestation by a CPA firm evaluating the effectiveness of your controls. It’s industry-agnostic and benefits any organization that handles customer data, whether in finance, healthcare, professional services or retail.

What makes this misconception particularly costly is the missed opportunity to shore up defenses before a bad actor strikes. In 2022, 41 percent of small businesses experienced breaches. With 43 percent of all cyberattacks targeting small and medium-sized businesses (SMBs) in 2023, it’s surprising that only 14 percent of these businesses say they’re “prepared to defend themselves.”

Small businesses assume they’re too small for SOC 2, yet they face average breach costs of $3.31 million, and 60 percent of small businesses that suffer a major attack close within six months. Although SOC 2 isn’t for every company, it can be a great way to measure security posture and demonstrate that posture to customers and other interested stakeholders.

Myth 2: A vCISO isn’t a “real” CISO.

The Myth: We’ve heard several related vCISO myths, such as that virtual CISOs are just IT consultants or that the “virtual” label indicates lesser expertise. Another is that only small businesses need vCISO support or that hiring one signals an organization isn’t serious about security.

The Reality: The “virtual” designation refers to the flexible, contract-based engagement model, not the depth of expertise or leadership provided. A skilled vCISO functions as an ongoing executive partner who shapes long-term strategy and governance, not a transactional person who disappears after delivering a report.

For SMBs, a vCISO is often the difference between having executive-level security leadership and having none at all. And it’s not just for small companies: Large enterprises regularly engage vCISOs for specialized projects, regulatory initiatives or interim leadership.

The market validates this approach, as the vCISO industry is projected to grow from $1.4 billion in 2024 to $3.8 billion by 2033. Hiring a vCISO demonstrates strategic maturity, prioritizing executive guidance without full-time overhead.

Myth 3: Pen testing is a “clean bill of health.”

The Myth: Organizations can complete penetration tests once or twice a year to prove everything is secure.

The Reality: A penetration test isn’t a final result — it’s a snapshot in time of your security posture.

Critical vulnerabilities in web applications increased 150 percent in 2024 compared to 2023, and high-severity vulnerabilities jumped 60 percent. What was secure last quarter may be vulnerable today. New exploits emerge, configurations change and software updates introduce fresh attack surfaces.

The more effective approach is viewing security as an ongoing, living process and conducting assessments quarterly, monthly or daily, depending on the environment. Rather than seeking periodic validation, organizations should embrace this continuous assessment and adaptation timeline to deal with the current state of cyber threats.

Myth 4: Audits are adversarial.

The Myth: Audits exist to find fault, assign blame or expose weaknesses that will lead to penalties. They’re only for large corporations and are meant to catch you doing something wrong.

The Reality: Few words inspire more dread in business leaders than “audit.” But this misconception prevents organizations from extracting real value from the audit process. Audits — whether financial, operational or security-focused — are designed to provide insights, strengthen internal processes and support better decision making. The goal is to identify issues before they escalate.

It’s also worth noting that audits aren’t just for large corporations. Organizations of all sizes can benefit from improved financial transparency and operational efficiency.

Myth 5: GRC is just about ticking compliance boxes.

The Myth: Governance, risk and compliance (GRC) is a mandatory set of activities to satisfy regulatory requirements and avoid fines—essentially, bureaucratic box-checking with no real business value.

The Reality: This narrow perspective misses the strategic value. GRC is a holistic framework where governance sets strategic direction and culture, risk management involves identifying and proactively managing threats and opportunities, and compliance becomes an outcome of effective governance and risk management, not the primary driver.

Companies with integrated GRC platforms report efficiency gains of up to 42 percent in reducing false positives. When organizations treat GRC as checking boxes, they create rigid, reactive processes that add little value. When they embrace GRC as a strategic driver for performance and integrity, it becomes a competitive advantage that aligns security investments with business objectives.

What’s next?

These myths share a dangerous pattern: They transform complex, strategic security functions into simple checkbox exercises. In doing so, they all fail to recognize that effective security is continuous, collaborative and fundamentally strategic.

The financial consequences of believing these myths are staggering. For instance, according to IBM, the average cost of a data breach across all company sizes reached $4.44 million globally in 2025, with U.S. organizations facing $10.22 million per incident. And organizations that suffer breaches take an average of 241 days to identify and contain them. Further, businesses that planned to cut cybersecurity spending face 70 percent more incidents and recovery times extending beyond 10 months.

The myths persist because they let organizations postpone hard decisions, avoid difficult conversations and kick the can down the road. But the threat actors aren’t waiting to act and neither should you.

This article was originally published on Forbes.com.

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