According to a recent report from the Office for National Statistics (ONS), cybercrime has risen by an incredible 63% and is primarily caused by malware and computer misuse. However, despite the real threat hackers pose to companies of all sizes, many businesses are failing to take the issue seriously.
To ensure your organization never falls vulnerable to an attack, find out how a data breach can impact a business in different ways.
A Poor Reputation
Your company could experience a data breach if it stores any information on an electronic device. If an intelligent hacker can gain access to your network, they could publicly expose your company’s files, customer and employee data, photographs, documents, financial information, and more.
Sadly, both the theft and exposure of your data can negatively impact your company’s reputation, as your customers might be angry about your organization’s lack of security and may cut all ties with your brand.
In fact, it is possible a customer or employee could embark on legal action against your company following a breach. Plus, not only can it destroy consumer trust, but it could lead to the public believing your company is ill-equipped to secure consumer data.
Financial Loss
If reputational damage and a loss of custom weren’t enough, your business might also face additional financial hardship following a cyber attack. For example, your company may need to repay any money that was taken from your customers following the hacking. You may also need to compensate customers and could experience plummeting shares.
What’s more, the Information Commissioner’s Office may also find your business up to €20 million, which is approximately £17.5 million, or 4% of your organization’s annual turnover, whichever is higher.
To adhere to your data protection requirements, contact one of the best law firms in Birmingham for informative advice regarding data privacy.
The Exposure of Intellectual Property
As many businesses depend on their intellectual property to maintain an advantage over a competitor, a data breach could potentially destroy your market edge. A hacker could possibly steal your organization’s innovative ideas, marketing strategies and expansion goals, which they could present to your competitors. As a result, your business could lose its USP, your employees could lose many months or years of hard work, and it could damage both your business revenue and growth.
Conclusion
Cybercrime is undoubtedly one of the biggest threats to your business, which you must not ignore. Attacks can come in a variety of forms, from clever phishing scams and malicious malware to identify theft and DoS attacks. It is, therefore, essential to educate yourself and your employees on the various preventative tactics and technologies to avoid a data breach, such as:
- Increased password security
- Routine data backups
- End-user security training
- Email encryption
- Antivirus and anti-malware software
- A powerful firewall
- Vulnerability assessments
By taking the steps to secure your data each day, you can relax in the knowledge that your business is protected, which will allow you to focus on your company’s growth and profitability.
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