It’s fair to say that today’s security landscape is complex. Businesses struggle to safeguard their customers and their data due to many factors. One of them is that cybercriminals are hard to spot, as they’re using modern technology and intense scamming techniques to breach networks successfully.
Sometimes, smaller organizations are destroyed to the point that they are forced to shut down. All “thanks” to the enormous damages that come with cyberattacks. That’s why losing sensitive information costs thousands or even millions and, at the same time, harms a brand’s image.
In this article, we review the top 5 negative effects of data breaches and raise awareness regarding the importance of cybersecurity.
Lost sales and bad reputation
Data breach affects the overall business integrity pushing customers to lose interest in the company. Being the top discussion in the media for the wrong reasons decreases any company’s sales.
On top of that, negative news reports can scare new leads and potential customers who were previously interested in collaboration. Of course, damage control in such situations is vital. PR professionals and marketing experts can help the sales team restore their image and shine a more positive light in the media to rebuild customers’ loyalty.
New cases of unexpected expenses
While a company’s budget is can be a sensitive topic for some, it gets even worse. Just think about the many business expenses that come after insane data breaches.
For example, according to IBM, on average, the loss of sensitive information can cost $4.1 million for the affected company. Businesses that want to prevent such losses must invest in proper cybersecurity insurance. In the long run, businesses that don’t leave security gaps win by saving themselves from unwanted consequences.
Multiple red flags for potential employees
Would you want to work for someone if you knew they had data security issues? The most common and obvious answer is no. That means a business that recently experienced a data breach will most likely lose when it comes to hunting for new specialists.
Additionally, let’s not forget the staff members that need to mitigate the ongoing security risks that are related to the incident. It’s no secret that the post-data-breach environment is stressful, especially for those who have high skills and knowledge in the IT field.
Instances of lost intellectual property
When we think that the most important asset for hackers is data, we tend to forget that there are all sorts of valuable information that can be stolen by bad actors.
That means not only standard customers’ data, like credit card information, but also business strategies, blueprints, or designs can be stolen. What’s even more extreme is that some competitors tend to see an advantage on their part and use this situation to steal the other company’s data.
Non-compliance fines and legal trouble
Handling large amounts of data automatically puts any business at risk. If a data breach occurs, typically, it results in huge fines for not sticking to the rules and regulations. In this sort of situation, the legal team must review all data privacy regulations, putting together a new strategic plan along with forensic reports to protect the company and its future.
If you’re operating in a B2B field, you must screen any company and potential partner using Business Verification before signing contracts. This prevents getting your brand tied up in scams and data breach incidents.
If you think that you won’t ever be tricked by any hacker, unfortunately, whether you like it or not, chances are that you’re wrong. Organizations that invest their time and effort into creating a consistent cybersecurity strategy minimize their risks of getting hacked. You can’t completely eradicate fraud, but you can use special digital tools to protect your business.