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The Surprising Financial Risks Of Cyber Security Breaches

The Surprising Financial Risks Of Cyber Security Breaches

The Surprising Financial Risks Of Cyber Security Breaches

The modern business environment is changing and simply dealing with the competition is not enough. Hackers and cybercriminals are continuously barking at the gates of commerce meaning businesses have more to look out for. Once your business vulnerabilities have been breached, the damage can be quite extensive. Here’s what you need to know about data breaches, and how to keep your business protected.

What Are Cyber Security Breaches?

With so many buzzwords being thrown around the office these days, it’s hard to keep them all straight. So when someone says that a firm just had a cybersecurity/data breach, what exactly do they mean by that? Put plainly, a data breach refers to the unauthorized or authorized access of sensitive information to untrusted sources.

The information that’s accessed can be anything from financial documents to detailed personal information from customer data. It’s important to remember that a data breach doesn’t just affect you and your business, it can have a ruinous effect on the lives of your customers.

Unfortunately, many firms don’t know that they have been breached until months or even years after the fact. With that in mind, businesses, especially financial firms should exhibit a strong sense of responsibility when it comes to protecting customer data. 

What Kind of Damage Can They Do? You’d Be Surprised

A data breach can do an incredible amount of damage and bring successful businesses to their knees. Most managers assume that the damage inflicted by a data breach is purely financial.

To a large extent, this is true, however, the damage can be more complex in nature. By failing to prevent a data breach and protect your customer’s information, your business violates data protection laws. It might sound unfair, but that is the reality of the current business environment. The Equifax data breach of 2017, for example, cost the company $575 million because it chose not to sufficiently protect customer data.  

In addition to financial and litigious damage, the defacement of your firm’s reputation due to a loss of customer trust is devastating. 

A data breach isn’t just a slap on the hand, if it’s extensive enough, your business could go down in flames.   

Famous Data Breaches 

That last example is one that all companies should strive for, especially those in the financial industry. Even companies as large as Verizon are often unaware of potential vulnerabilities in their systems. That’s why it is vital for you to spot any weaknesses in your system that could facilitate a data breach. Working with a third-party cybersecurity firm provides you with superior security at a fraction of what it would cost you to employ the same expertise in-house. 

Managing and Preventing a Cyber Security Breaches

The number and frequency of cyber attacks has been steadily rising at an alarming rate. 

One thing that many businesses struggle with is developing a sound cybersecurity strategy and figuring out exactly how to prevent cyber security breaches as well as other attacks. You should know that while proactive effort is key, it’s also vital for businesses to know how to manage a data breach after it’s occurred. In most cases, the information that was stolen will be used at a later date to perpetrate fraud. 

Making decisions on how to prevent and manage a data breach takes an incredible range of technical skill. Doing it on your own can become difficult, that’s why hiring a professional can help save money and your company’s private information.

The Importance of Cybersecurity Training

The perpetrators of data breach attacks are remarkably sophisticated using exquisite plots and software. Other times, social engineering traps are just as damaging yet cheaper to employ.

  • In one case, a teenager successfully extracted intelligence information on a military operation in Afghanistan by addressing themselves as the head of the CIA in an email. 

Having an employee fully trained in cybersecurity can keep your business’ information safe at all times. With the use of that one employee, they can help the rest of the team become knowledgeable about cybersecurity breaches, and how to prevent them or come back from one if it hits your company. 

Putting it All Together

When it comes to cybercrime, a data breach is one of the most frightening attacks that a business can encounter. Being proactive and protecting your firm from these attacks by working with a cybersecurity firm sets you apart from the potential victims and puts your company in a stronger position. 

Cybercrime never stops, and neither should your efforts to stay ahead of the game.