With so many digital threats coming from different sources, it’s no wonder why cyber security is a major concern for all businesses. Companies stand to lose a lot if confidential information is stolen after a malicious attack.
But just how much can a company lose after a successful breach? Let’s look at several ways:
Hackers can take your system offline, leaving your employees unable to work and your customers unable to use your online services. For bigger companies like social media platform Facebook, losses can reach more than $24,000 a minute. Though your company may not as huge, that number should give you an idea of just how much money can be lost in a short time.
Ransomware is malicious software that locks you out of your systems until you pay the ransom demanded by the hackers. Payment is done by cryptocurrency so it’s hard to trace. If you fail to pay before the deadline, the ransom is doubled.
What exactly went wrong? How did your company’s cyber security get compromised? You are expected to get to the root of the problem and ensure it won’t happen again, both for the sake of compliance and for your company’s future. But investigations cost money especially if you have to hire a third-party provider of IT security to conduct it for your company.
Companies that fail to protect sensitive customer data are fined hefty fees for their negligence. Different states have different regulations, but regardless of where your company is located, you can expect the amounts to be substantial. You also have to pay on time if you want to avoid additional late fees.
Giant store retailer Target has to pay $18.5 million in settlement after a 2013 data breach that compromised the data of millions of their customers. As this was a national breach, lawsuits were filed across the country from California to Washington DC, prompting Target to pay for many claims.
When faced with lawsuits, you need to have your own legal representation, and that costs money. Even more so if you want the best lawyers to work for you. For small to medium-sized businesses or SMBs, maybe you can find a pro bono attorney. Nevertheless, time spent on sorting this out is time lost for your company.
Long after the fines, settlements, legal fees, and service fees have been paid, companies can still feel the after-effects of data breaches. Because of lost trust, both potential and existing customers are likely to choose a competitor with better security. Trust, once broken, is hard to restore— if it gets restored at all. Years may pass before your company gets back to its feet once it has been hit.
Cyber security should never be taken lightly whether your company is an established corporation or a growing SMB. To ensure you’re safe from threats, partner with a reputable third-party provider of IT security. With years of experience under our belt, we at Idealstor are happy to help. Contact us for more information on our services.