Cyber threats work like poison for any and every business. It does not only happen to big, influential businesses but the small businesses are as well constantly at risk. According to a recent article by Forbes, Cyber Crime Costs are expected to reach a whopping $2 Trillion by 2019. Thanks to technology, it has changed the workplace.
As much as it is important to discuss the negative impact it casts on businesses, it is equally essential to know and educate yourself regarding the kinds of cyber attacks your businesses at any point can face. The most common kinds are Computer System Attacks, Malware (Viruses, Spyware, Bots), Phishing, Identity Theft, Social Engineering, and Web-Based & DoS Attacks (Denial-of-Service).
With so many incidents of cyber threats and security breaches popping up, it is imperative for the businesses and organization to devise some plans to deal with them. Speaking of this, a cyber threat is that mind-boggling battle that needs to be fought through thoroughly planned strategies. Moreover, understanding the detrimental effect a cyber threat can have on your business is paramount for you to feel motivated to put in action the best precautionary measures for the protection of the data and assets. And for the business to stay relevant, they really need to up their existing strategy game considering that the following negative effects these cyber threats bring upon.
One of the key elements for a business to enjoy a top-notch status in market and in the customer’s eye is a high reputation. And to secure that sort of reputation, a business has to build a level of trust between itself and the customer invincible in nature. Sadly, practically this is not possible as cyber attackers have the ability to even break into complex systems. Due to such unsolicited invasions, the element of trust gradually begins to fade away. This in turn leads to other potential losses which happens to be inter-related. So how does it go? Well, a crack in trust leads to a loss in customer base, which means fewer purchases. Hence, a massive reduction in sales and as a result, in profits. This is how a single cyber threat can take a business down the drain!
The data protection and privacy laws strongly imply that it is solely the responsibility of the business to protect the security of both the staff and customers at all costs. When this security gets on stake as the data gets compromised following a cyber invasion, the business should on first and foremost deploy corrective or appropriate security measures. If having failed to do so, a business may end up with fines, restrictions and regulatory sanctions. The law would not care whether the data was deliberately compromised or it was an attack, it would simply do what it ought to do in case the business fails to provide the needed security measures.
The financial losses associated with a cyber attack are the costs incurred with having the need to repair or upgrade the security systems and networks. In addition to this, the monetary loss involved in business contracts when they get broken following the cyber attack. This happens as the investors’ start losing their trust and withdraws any further support. Of course, nobody wants to invest in a business that does not have an effective protection system employed.
Furthermore, there could be a disruption in online trading, which means an added monetary loss.
It is not only the reputation which is at stake but even the intellectual property. It is in fact, potentially at a much greater risk. If the cyber attack has the motive to actually steal the marketing strategies or business expansion plans, then the position of the business in the market can become shaky; the intellectual theft can result in loss of the competitive edge. A cyber attack can then leak the stolen ideas and strategies to the rivals taking away the hard work done by your business down the hill in just one swipe. Business growth and revenue would be effected for months in addition to the time and money invested to devise the ideas.
Post a cyber attack, a business would literally feel the need to transform its methods currently employed to function. They would have to rethink as to what could be an even smarter technique to collect and store information with no or less chances of it becoming vulnerable to such cyber threats.
Sometimes, a business just dumps the idea of online stores following such threats out of sheer fear and not being able to deploy adequate protective measures. In order to avoid this, businesses should and must adjust their methods periodically and not only when there is some cyber attack. As cyber crime is gaining momentum, it is always a wise idea to be one step ahead of these nasty invaders.