Al Woods words
Data is one of the most valuable assets for a business. Unfortunately, data breaches have become more common today as more businesses go online. The majority of businesses that experience data breaches face significant financial and reputational loss.
Since the majority of business data consists of payment and customer information, data protection should be paramount. Fortunately, there are ways to protect your business data from breaches.
Cloud protection platforms provide better data protection through many strategies such as security least privilege principle that protects your data by restricting access to the system. If you are a data protection officer in your business, you should be aware of these four terrible effects of data breaches on businesses.
Penalties and fines
Payment information is one of the most classified information that businesses operate on. If payment data and user banking information is lost, businesses face heavy penalties.
Businesses are often fined by the authorities that regulate card payment transactions. In addition to fines imposed by the government, they will also be subject to legal action brought by customers whose information has been lost.
Many small and medium-sized enterprises (SMEs) are already struggling with poor funding. On top of that, the added burden of fines can leave the business in the ruins of bankruptcy.
When a business loses its users’ classified business information, it faces the wrath of numerous offline government and cybersecurity boards. A data breach also prompts a forensic investigation to uncover the causes and vulnerabilities resulting from the data breach.
Many cybersecurity experts analyze the different components of systems to determine whether the attack was caused by a real attacker or due to human error or negligence on the part of the affected person.
The result of the investigation determines the degree of sanction imposed on the company. In 2019, Google had to pay $ 56.6 million in fines for violation General Data Protection Regulation (GDPR) conformities.
While these investigations reveal valuable information about your security architecture, the cost of a data breach would be too high. You can avoid all of this catastrophic financial burden by consulting with cybersecurity experts who can help protect your data from possible cybersecurity breaches.
They use advanced security methodologies such as least privilege security to restrict and control access to system data.
Loss of trust and reputation
It takes years to build trust in the minds of customers. Companies have spent millions of dollars over the years to establish a brand image recognized and appreciated by their loyal customers. A data breach could ruin all the hard work done by years of reputation-building measures.
News about data breaches spread like wildfire, primarily because they involve a huge amount of classified user data exposed to the world. It also creates a significant security issue for users and the business.
So, when a business suffers from a cloud security breach, it seriously affects its reputation and the trust of customers. There are many instances where company stock prices have fallen as a result of data breaches.
Dealing with the consequences of a data breach and rebuilding the public image can be impossible for many businesses. The potential customer is reluctant to buy your products or services, and even business partners would like to avoid associating with your business. In many cases, investors walk away from boards of directors and avoid investing the extra money in your business.
It will always be on the internet
Your marketing manager will surely agree that nothing is disappearing from the Internet. Online news networks, tech blogs, journalists, forums write news articles, posts, videos and discuss cyberattacks and data breaches. All of this bad publicity can never really be removed from the Internet.
Businesses have a bad name and will always be portrayed in a damaging light by the media. On top of that, it will seriously harm your online presence. Social media handles will be inundated with negative comments and critiques that can destroy your brand’s online image.
Also, since news network websites have higher authority in the SERPS, it can seriously affect your search engine rankings. For example, every time someone searches for your business name on search engines, they will be presented with news articles and videos referring to your business data breach.
Surviving a data breach can be brutal, especially when the business has just started to spread its wings. It would be impossible to fight the multi-million dollar lawsuits that accompany data breaches.
This is why it makes sense to take the necessary steps to strengthen the security of your cloud by bringing in professional cybersecurity experts to prevent all types of malware attacks, information leaks, or data breaches.