5 Damaging Effects of Cyber Attacks
Cyber attacks feel a lot like Covid-19. You don’t understand the impact until it hits you personally. The thing is, it shouldn’t take experiencing cyber attacks to realize it’s detriments. Organizations should have a full grasp on the consequences of a data breach, as it could prove helpful should an attack occur.
Not sure what the negative consequences are of a cyber attack? Let’s dive in.
#1: Financial loss.
Financial loss is by far the biggest consequence of a cyber attack. In fact, the cost of a data breach has risen 12% over the past five years, and isn’t slowing down. There are a multitude of ways your finances can be burdened, from having to compensate any affected customers to setting up incident response efforts. Not to mention any legal fees or regulatory penalties for not complying with GDPR. Especially for small to mid-size organizations, a data breach can make or break your business, and cause a major setback on your company’s share price and valuation.
#2: Damage to your reputation.
Sadly, damage to your reputation can hurt you financially in the long run, even if the initial financial burden from the breach didn’t leave a huge impact. A reputation is EVERYTHING for an organization these days. The negative press coverage combined with distrust from customers can be detrimental to your business. A data breach also has the potential to limit your attraction to new customers, hinder the ability for future investment and getting new employees on board might prove troublesome.
#3: Workflow disruptions.
A data breach is no small hiccup, and business operations are most likely to be disrupted. That’s why it’s critical that the company affected does a thorough investigation of how the breach occurred, and what systems were accessed. This puts a stint in other departments, and hinders the timelines of all other projects in the organization. Think of it like dominoes; once one falls, they all fall. A proper solution in the event of a data breach is to shut down operations completely until you get the answers you need. This can take days or even weeks depending on how bad the breach was, and that can heavily impact your company’s revenue streams.
#4: Legal action.
When a data breach happens, the organization is required to show that they’ve taken all the necessary steps and action to protect all personal data. Whether it’s intentional or not, individuals can seek legal action for compensation if their data is compromised.
#5: Loss of data.
Losing data because of a security breach is devastating. Imagine if a critically ill patient had their medical records hacked, and they couldn’t be recovered. This could mean life or death if doctors don’t have all the information to treat you properly. This is an example of an extreme case, but they’re not as uncommon as you think. Depending on how your organization backs up data, it might not stand the chance of being recovered which again, could make or break a business.
If you’re worried about your organization experiencing a data breach, don’t worry — you’ve come to the right place! Thinline Technologies can help prevent your organization from cyber attacks and take proactive measures to ensure your data is backed up safely and securely. Visit our services page for more info or contact us online today.