According to a report from McAfee, midsize companies across the world have seen an increase in cyber attacks and at the same they're spending less money on security, reports CNET News.

The reports shows that one in five midsize companies lost an average of $41,000 in sales as a result of a breach. At the same time, 40 percent of companies are cutting their IT security budget, and more than a third are switching to cheaper security software to cut costs.

McAfee notes that midsize companies may underestimate their risk. In fact, 90 percent believe that they do not face the same threats that larger companies do.

SiliconIndia quotes Darrell Rodenbaugh, senior vice president of global midmarket for McAfee, saying:

An organization's level of worry and awareness about increasing threats has not overcome the downward pressure on budgets and resources ... this creates a vicious cycle of breach and repair that costs far more than prevention. Our research shows that organizations that put more effort on preventing attacks can end up spending less than a third as much as those that allow themselves to be at risk.