12 Damaging Consequences of Data Breach

12 Damaging Consequences of Data Breach

Data breaches continue to dominate headlines around the world. Despite a greater emphasis being placed on data security, cyber-criminals are continually finding new ways to circumvent defenses to gain access to valuable corporate data.

Unfortunately, this worrying increase in the consequences of a data breach does not correlate with an increase in organizational preparedness. Many organizations are woefully underprepared and failing to implement the necessary security measures that are needed to prevent a cyber attack.

Also Read: Free Guide For Appointing a Data Protection Officer (DPO) For Your Business

Now, take a look below at the 12 worst-case scenarios that businesses could face the consequences of data breach.

1. Putting your intellectual property or trade secrets at risk. When we talk about cybercrime, we usually picture substantial financial loss and personal identity theft. However, anyone familiar with espionage will know that intellectual property is also under threat.
2. You could be hit with a virus. WannaCry, StormWorm, and MyDoom are just a few examples of weapons of mass software destruction that made it onto the list of vicious malware. According to research conducted by the UK Government’s National Cyber Security Program, 33% of all data breaches originate from intrusive or harmful software.
3. Hackers could target you. Having the same or similar passwords for every email account and website may make things easier for you. However, weak passwords make you extremely vulnerable to attackers. It’s advisable to use a random password generator that will incorporate both upper and lower-case letters, as well as special characters, to increase your password security.
4. You could suffer damaging downtime. Businesses and organizations spend a lot of their time and money, ensuring they remain visible and have a positive perception online. Unfortunately, once they are targeted by cybercriminals who use sophisticated systems to execute data attacks, that time and effort are worthless. It’s reported that an unplanned outage costs a business of £6,000 per minute on average.
5. You could hurt your reputation. Most downturns for firms and organizations are usually caused by data breaches and cyberattacks that could have been prevented. According to 90% of CEOs, striving to rebuild commercial trust among stakeholders after a breach is one of the most challenging tasks to achieve for any company regardless of their revenue.
6. You could risk physical data loss. Remember to keep your infrastructure safe at all times to avoid being forced out of business by cyber thieves. Over 70% of companies involved in a significant incident either do not reopen or fail within three years of an incident occurring.
7. You could suffer a security breach or attack. The bigger your organization or company, the more data you will hold. Therefore, there is a higher risk that you may be targeted by cybercriminals attempting to compromise your data security. Nearly half of all businesses in the UK have reported at least one data breach or data breach attempt in the last year. The possibility increases to 66% for medium-sized firms and 68% for large firms.
8. You could lose or compromise your customers’ data. In the infamous Equifax data breach, which most likely occurred between mid-May and July 2017, personally identifiable information belonging to around 800,000 UK consumers is believed to have been accessed by cyber thieves. The scale and consequences of the Equifax security faux pas are enough to scare any business into dealing with sensitive information correctly.
9. You could put your employees’ data at risk. You’ve been warned over and over that your employees’ behavior can have a significant impact on data security in your organization. Social engineering is one of the most common and effective ways of gaining unauthorized access to classified information. Sensitive information about people in your company is just as valuable as your customers’ data. Therefore security procedures and processes should be just as stringent for both employees’ and customers’ information.
10. You could suffer a DDoS attack. DDoS attacks are a distinctive type of malicious attack that takes down machines or whole network resources. It’s done by temporarily or indefinitely disrupting services of a host connected to the internet with an avalanche of superfluous requests. This, of course, has foreseeable financial consequences.
11. You could lose a lot of money. The majority of cyber attacks concentrate on the insides of your wallet. It is forecast that by 2021, cybercrime damages will cost the world $6 billion.
12. You could be operating against laws and regulations. Depending on the country, rules or directives outline how companies and organizations should comply with data protection. Following these rules is crucial to help successfully avoid cyberattacks and fines.

Regardless of how prepared your organization is for possible consequences of data breach, there is no room for complacency in today’s evolving Cyber Security landscape. You must have a coordinated security strategy in place that protects sensitive data, reduces threats, and safeguards your brand’s reputation.