Security Breach is a notorious threat more common today than ever before because of the damages it can cause to any business.But 70% of executives stated that organizations fail to understand the risks associated with data breaches which makes them unprepared from any attacks launched by hackers and cyber criminals.
Any business, whether it’s a small business or a large corporation could become a target for any data breach especially when it’s valuable to a third party. Since businesses collect data from their consumers, their personal information such as social security numbers, contact information, birth dates, education, and others would be a risk from being sold, used for marketing, fraud and identity theft.
Other details such as health conditions, medical records, credit card numbers,and expiry dates, bank accounts, and investment details are often usedfor the same purpose as well.
Sometimes, unauthorized access to data can’t be avoided, no matter how great the organization invest in good security, but depending on the incident, the consequence could range differently.
For some businesses, failure to keep the customer’s data safe will lower the credibility and brand reputation most companies worked hard for. Customers value their privacy as well. Incidents where organizations experienced a data breach would not only affect their long-term reputation,but it would also make even their most loyal customers want to take their business elsewhere as 70% of consumers admitted.
Prospects would also hesitate to trust a business with a history of data breaches. All of these consequences could also result insevere financial loss. If clients look elsewhere for products and services after the security breach, companies could expect a loss of revenue or in some case, going out of business with all assets gone.
The revenue loss is only the beginning of these companies’ problems. They could also be facing legal expenses in dealing with compensation claims. They could also spend more on Public Relations as well as investigations.
In some cases, rivals wouldn’t hesitate to use stolen information to their advantage which is why drawings, manuals, and blueprints could also be targeted. These materials can be used to develop similar products and services which could impact the competitiveness of a business.
Competitive information could also be sold to damage a business’ legal position. Data on competitors, market studies, pricing information,and business plans could be stolen and used to block plans and leak legal information.
Security breaches have shown no signs of slowing down. However, there are a few solutions to reduce risk. A few basic methods such as keeping your software updated, encrypting data, and avoiding risky emails can lessen any vulnerabilities from any threats and protect your business from any high data breach costs.
The cost of protection can’t cost more than the price of security. That’s why businesses should do their best to reduce the risk as these unfortunate companies and organizations which experienced the most damaging security breaches in historyfound in this infographic by Telemessage.