Don’t let a cyberattack be the downfall of your business and become a digital disaster! Protect yourself and your company by being proactive and taking steps to secure your digital presence. Keep your software and systems up to date, use strong and unique passwords, and educate your team on the importance of cybersecurity. Don’t wait until it’s too late to realize the impact a cyberattack can have on your business. Stay ahead of the game and safeguard your company’s future by being diligent about cybersecurity. If your business relies on digital operations, here are ways cyberattacks can cause significant damage:
1. Reduced Share Price
Many companies have suffered from a major reduction in share price, following a massive data breach. Hackers will not only steal names and home addresses but also social security and credit card numbers. It will take a long time for your stock price to recover. This can happen if the business doesn’t immediately correct digital weaknesses. A quick way to mitigate the risk is to use encryption. Although hackers may still obtain the data, it will take too much time and effort to decrypt the usable information.
2. Infringement on Intellectual Properties
Hackers may seek to steal some intellectual properties, such as blueprints and business plans. Once stolen, hackers may sell them to the highest bidder. If your technology or research is not yet patented, it will be easier to infringe on these intellectual properties. Such a situation may occur when competing businesses seek to gain information on what your company is doing. If your business is negotiating a merger, there could be crucial information that can’t be shared with the public.
3. Bad Reputation and Loss of Trust
People won’t buy from a company that is known for its poor security system. If your system has been breached, people will not sure whether your company is able to properly protect their data. The loss of brand reputation can be much higher than direct financial losses. Clients may refuse to work with your business and you may potentially lose the opportunity to gain millions in profit from lucrative projects. The ability to protect customer data is crucial for the ability of your business to maintain its presence and market dominance. In a highly competitive market, business trust can be the most valuable asset that you can rely on.
4. Business Interruptions
Some cybercriminals intentionally interrupt and overwhelm your business operations with DDoS attacks. It will be harder for employees and customers to gain access to the company’s system. Many hackers steal data quietly and cover their tracks, so they can return later unimpeded. However, it is very disruptive if hackers want their presence known and try to paralyze your system. Each minute of downtime can be very frustrating for customers and may result in a significant loss of money.
Regulators and authorities may fine businesses for data breaches if caused by negligence and poor conduct. These fines serve as deterrents to keep businesses wary of potential data breaches. Fines can be incurred if data breaches involve the personal information of customers. Stolen personal data make customers vulnerable to frauds and data theft. Hackers may sell stolen personal information to fraudsters who have the tricks and tools to inflict serious financial losses on each individual customer.