By Ron Evan, freelance writer.
According to a report from Security Intelligence, the global economy lost an incredible $600 billion as a result of cybercrime in 2017, and that figure has likely grown since. It is not only financial losses that companies face as a result of not implementing robust security measures.
When data breaches occur, businesses can also lose their valuations and their reputations. So, do not underestimate just how much cyberattacks and data loss can affect your company’s finances and brand. Here are four serious implications of not tidying up your business’s cybersecurity measures.
1. Data Theft
When your business does not utilize sophisticated security defenses, your company can become more prone to cyberattacks. Furthermore, now that many companies have remote workers, it means many employees working from home will be using their own devices and potentially be using unsecured Wi-Fi. You can increase security for remote workers by training them in best cybersecurity practices and also using an enhanced cloud file server that can provide greater security and better file server mobility. If you do not pay attention to implementing such cybersecurity defenses, it can lead to your company’s data being stolen. Hackers can then sell that data on the dark web, which would have a serious impact on your business.
2. Financial Losses
Data is not the only thing hackers steal. Of course, they also steal money. But even data breaches alone can result in huge costs for a company. Indeed, the average cost of a data breach for small businesses is around $665,000. Meanwhile, large corporations can expect to incur around $7 million in damages. With such hefty financial losses, your company could potentially go out of business quickly. So, take the proper steps to ensure all of your data is secure against cyberattacks.
Not only will cyberattacks cause your business financial losses in the ways described above. You could also face having to pay monetary penalties for not complying with data protection laws. More authorities around the world have started implementing stricter regulations and penalties for companies that fail to protect their customers’ sensitive information. For example, the European Parliament has suggested a fine of €20 million to be paid by any company whose customer data is compromised because of a data breach. With such large fines, many businesses could end up going under if they have not properly protected their customers’ information.
4. Damaged Reputation
While cybersecurity breaches can cost your business a lot of money, just as bad is the fact that the breaches will damage your company’s reputation. When companies lose customer data, clients and customers will no longer want to do business with them. A damaged reputation can cause a loss in sales and a weakening of your brand. In fact, damaged reputations harm companies so much that one in ten businesses change the direction of their products or services after a data breach in the attempt of restoring trust.
It should now be clear how not paying attention to your cybersecurity measures can harm or completely ruin your business. But you can significantly reduce the likelihood of an attack from happening by implementing the right security measures. In addition to using a secure file server, you should ensure you implement and maintain a security program, train all of your employees in cybersecurity awareness, and enable multi factor authentication and a firewall. Your company should also enforce safe password policies. If you do not take the right security measures, your company will be a sitting duck for cybercriminals.