Many of us are familiar with the term ‘data breach.’ However, not all of us are too familiar with how impacting a data breach can be, both for you personally, and for your business.
What does it involve?
A data breach involves the release of secure or confidential information. This information is then shared in an often unknown and always untrusted environment. In most cases, if your company finds that a data breach has occurred, it will have involved your private data being stolen and shared via an unauthorized source. Additionally, some data breaches are caused due to intrusive or harmful software. This malware can further disrupt your IT and computer processes, and may even delete, hold to random or steal valuable business data.
What data can be stolen?
The information acquired could include:
- Your personal information, such as Social Security number and contact information
- Your financial information including bank account details
- Health information of individuals
- Intellectual property such as material your business has developed
- Legal information
- IT security data.
What could this mean for my business?
A data breach can leave you at risk with various results. Identity theft is common, for example, if the hackers decide to act upon the information they find. Below outlines a few other ways that a data breach can impact a company and why it can be so damaging to your business.
- Revenue loss
Your business could suffer a significant revenue loss as a result of a security breach. A non-functional website could contribute to this, as customers will potentially look elsewhere if it appears your company isn’t up and running as standard. Work patterns are often disrupted with a data breach too, which can also have an effect on your overall output and revenue. In general, the primary damage of data breaches and cyber-attacks is the loss of money for a company or individual. It has been forecast, for example, that by 2021, cybercrime damages will cost the world $6 billion.
- Brand Reputation
Your long-term reputation could be severely impacted by a data breach. A breach involving emails, for example, can set back your company due to the ongoing issues this could cause. Taking it one step further, the information about your customers is vital to keep safe, too. Breaches may often involve customer payment information. Many will take their business elsewhere, or be hesitant in the first place to trust your company with their information if they hear a data breach has recently occurred. Some data breaches can potentially shut the doors of your business and be hard to come back from.
- Loss of intellectual property
As well as private information, a data hack can be taken one step further and may involve hackers targeting strategies, blueprints, and designs that are your company’s by right. Many small businesses think that they will not be affected by this; however, small businesses are often targeted more, quite simply because they are easier to hack. A loss of intellectual property can impact your business’ competitive edge, and take you back to square one if specific software is accessed, for example.
If you are concerned about where your company stands with its online protection, then talk to us, as we can recommend solutions and protection for you and your employees, meaning you can rest assured knowing your company is in good hands.