It takes less than a minute to occur data security breach which is definitely less than preparing a cuppa coffee. In fact, 93% of successful data breaches occur with just a few clicks yet 80% of businesses take a couple of weeks to realize it.
Compromised data have many costly consequences and this is the main reason why 86% of business executives believe in cybersecurity threats.
In my previous blog on “Recent famous data breaches which affected businesses. How do they happen? Which data is stolen?” I highlighted data security breach events. Now, this blog will be going to disclose the consequences of data breaches which will be helpful to all businessmen who are serious in the protection of their data.
- Revenue Loss
The revenue loss is a resultant of the data security breach. According to some studies, 29% of businesses who faced data breach end up losing revenue. Of these, 38% experienced a loss of 20% or more.
For instance, a non-functional website may cause potential customers to find other options but in case of an IT firm, system downtime can lead to the work disruptions.
- Brand Repute Loss
Short-term revenue can be mitigated but damage to your brand is irreparable. For one, you do not want your emails leaked and, in most cases, you keep these emails private. However, customers don’t care about your data. All they need is privacy and protection of their significant data. Data security breach often involve customer payment information. With the sloppy data security incidents, potential leads will always remain hesitant to trust such businesses.
- Intellectual Property Loss
Hackers can never leave un-touching target designs, strategies, and blueprints of targeted business. Businesses within the manufacturing and construction industries are more vulnerable to these threats. Small-scale businesses tend to believe protected from such breaches but 60% of hackers target small businesses as they are easier to attack.
Losing your intellectual property lead towards the competitiveness of your business. Some rivals won’t get relief by getting this only, but to take advantage of the stolen information as well.
- Hidden Costs
Many hidden costs are also related to breaches other than surface level costs which are just the beginning. For example, legal fees may come into play. You also may need to spend more on PR, investigations and insurance premium hikes as well.
Another reality that businesses overlook is Regulatory Fines. For example, in 2015, the FCC slammed AT&T with $25 million fine which was the result of a data security breach that led to the disclosure of information of thousands of accounts.
- Online Manipulations
In cases where hackers fancy themselves as pranksters, a data security breach might lead to few word changes on your website. While it seems harmless but can actually cause lots of damage. Subtle changes are harder to notice. Like, a hacker might change any information on your contact page or might also some indecent content to some of your web pages.
- Law Violations
Complying with data protection, each country has their own regulations or directives outline how companies and organizations should protect their data. By not doing so, you could be operating against laws and regulations of your country.
Adopting these rules makes a business successful in avoiding cyber-attacks and protected from data security breach. In 2016, UK businesses were fined £3.2 million (in total) for breaching data protection laws.
- Decreased Competitive Ability
Sometimes, hackers also interested in the business’s proprietary information including customer lists, pricing strategies, and trade secrets. When cybercriminals get all these information, they can provide these materials to industry rivals or by exposing to the public, in order to damage a company’s competitiveness. This is more sensitive if the data security breach is not discovered immediately and is allowed to continue for weeks or months.
Moreover, a cyber data security breach will decrease a company’s competitive ability as customers are likely to look to other sources for marketing purchases. If not identified immediately, a data security breach can have major consequences on a company.
Protection against Data Security Breach
Data security breach is more common these days than ever before. The total number of data breaches in 2016 increased by 86% globally as compared to the previous last year.
As rebuilding a reputation takes more time and effort than it did to build it so here I’m suggesting a few steps you can adopt to protect your business.
- Update software to reduce vulnerabilities
- Encrypt your data
- Always avoid opening risky emails
- Contact Cyber Security Teams to detect and prevent many threats.
If you want to require further help and information regarding how to protect your business against data security breach then don’t hesitate to contact us. I, with my professional team, will provide you with detailed guidance that will guard your business and give your business a protected arena.