Data is a valuable asset to businesses around the world. Many businesses are adopting the latest technologies to safeguard their data, especially data related to their employees, customers, and payments.
However, cybercriminals are also leveraging the latest technologies such as automated bots, software, and tools to conduct more sophisticated and difficult to track cyberattacks.
The Cost of a Data Breach Study 2018 by the Ponemon Institute revealed that the average cost of a data breach globally is nearly $3.86 million, a 6.4% rise from 2017. The study also found that the average cost per stolen and lost record in 2018 was $148.
Even the smallest data breach can have a large impact on your business.
Be it a small-to-mid-scale business (SMB), or a global corporation, every business needs to stay vigilant when it comes to securing their data. Small business owners often overlook the importance of security and believe that they are not on the radar of cybercriminals.
That lack of security preparation and poor security hygiene put them in a vulnerable position, where attackers might attempt to steal their data or cause a data breach.
How Can A Data Breach Impact Your Business?
Customers share their sensitive information with businesses like yours. Data such as their personal details, contact number, birth date, passwords, etc. And they do so assuming that you will have proper security measures in place to protect their data.
When a data breach occurs and the sensitive information of your customers is compromised, you not only lose trust and relationships but also lose credibility.
A good reputation and integrity are often an organization’s most prized assets, and data breaches can cause severe damage to both.
The long-term effects of a data breach on businesses are often devastating.
It is critical for companies to be proactive about data protection and take the necessary steps to ensure data security. Running a business, regardless of its size, requires the ability to understand, anticipate, and implement proper security measures.
Here are some the most common and severe long-term effects of a data breach on businesses that you should know about: