Impact of cyber attack on your business
Companies lost $1.8 billion to cybercrime in 2019, and about 6% of companies report having to pay a ransom to regain control of critical IT systems. According to Infrascale, 46% of all small businesses have been the targets of a ransomware attack. Of the companies hit with a ransomware attack, 73% have paid a ransom. There are numerous ways a cyber attack can impact your company. In this article, we will explore three key types of damages cyberattacks can have on your business, as well as ways to protect yourself and your business.
The most obvious effect a cyber attack can have on a business is in economic damages. This includes theft of corporate information, theft of financial information, theft of money, disruption to trading, and loss of business or a contract. Companies that suffered a cyber breach will also usually incur expenses associated with restoring impacted systems, networks, and devices. These economic damages are typically easily quantifiable but can often be too much for small businesses to handle and in many cases can bankrupt a company.
One significant but potentially overlooked effect cyberattacks have on a company is in reputation. In the event of a cyberattack a business risks loss of customers, loss of sales, and reduction in profits due to reputational damages. These attacks can erode customer and client trust in a business to deliver its products or services. The impact of reputational damage can even influence your suppliers, or affect relationships you may have with partners and investors. Difficult to quantify, reputational damages are among the hidden effects of cyber attacks and are often the most costly.
Another overlooked but important effect of cyberattacks is the legal repercussions a company could face, especially if found negligent in its cyber security and data management practices. Data protection and privacy laws require you to manage the security of all personal customer data you hold. In the case of a data-breach companies can face expensive fines and regulatory sanctions. These are in addition to any lawsuits and settlements that come as a product of a cyber attack.
How to protect your business
If you've read this article, you're already taking positive steps to avoid cyberattacks, but there are many other serious threats out there. Red Sea Information Security offers services in Penetration Testing, Auditing, Network Assessment, and Generalized Information Technology support which includes Security Awareness Training to prepare and be proactive against cyberattacks.