Due to the global remote work environment and international cyberwarfare, data breaches have never been more dangerous — and now – even more commonplace. But do we fully understand why they’re so dangerous?

Even when you set aside the ways in which data breaches affect individuals on a personal level — and even when you set aside the fact that they could allow a nation-state threat actor to steal classified information and commit espionage against U.S. government entities — data breaches have the potential to severely disrupt, if not outright destroy, organizations and businesses of all sizes. This article outlines the various ways in which data breaches can harm your company and why cybersecurity needs to be top-of-mind in everything you do.

The Financial Cost of a Data Breach

The sheer financial cost of a data breach is likely one of the most immediate and apparent consequences. According to a new report from IBM, the cost of a data breach has risen more than 14% over the past five years. These costs can include compensating those who have been affected, the actual response efforts, the investigation of the breach itself, new security measures that must be put in place after the breach, and the legal fees post-breach. For those who operate outside the United States, there are also steep financial penalties that come with non-compliance with the General Data Protection Regulation. A breach can significantly impact a company’s share price and overall stock value.

Finally, reputation means everything in business. Research has shown that up to a third of customers in retail, finance and healthcare will stop doing business with organizations that have been breached. If your customers don’t feel like their data or worse, their money is safe with your organization, your business’ bottom-line will undoubtedly suffer. Additionally, research has shown, 85% of consumers will tell others about their experience, and 34% will take to social media to vent their anger about your brand. All of these factors together add up to a major impact on your business and your company’s bottom line. The costs can be immeasurable.

Downtime and Your Bottom Line

In the aftermath of a data breach, business operations can be heavily disrupted. Organizations must take the necessary steps to contain the breach and then conduct a thorough investigation into how it occurred and which systems were accessed. Operations may have to be completely shut down until investigators get all the answers they need. This process can take days or even weeks, depending on the severity of the breach. This downtime can have a drastic impact on a company, and even potentially put some people out of work entirely.

Lawsuits and Criminal Charges

Under data protection regulations, organizations are legally bound to demonstrate that they have taken all the necessary steps to protect personal data. If certain data is compromised, such as personal identifying information (PII), whether it’s intentional or not, individuals can choose to seek legal action to claim compensation. And if an organization is shown to have not taken the appropriate steps to secure the data they were entrusted with, they have been held accountable for such breaches.

The responsibility falls on the consumer to keep their data secure, but today, they expect businesses to also keep their data safe. The question then becomes whether or not you’re prepared for the fallout should you disregard your security obligations.

Contact Us

Don’t let a data breach affect your bottom line and reputation. Instead, rest easy at night knowing your business and consumer data is secure with a trusted group of IT professionals working round-the-clock keeping your information and systems secure. Give V2 Systems a call and set up a free two-hour consultation.

Since 1995, Manassas Park, VA-based V2 Systems has employed local systems administrators, network engineers, security consultants, help desk technicians and partnering companies to meet a wide range of clients’ IT needs, from research, to implementation, to maintenance. Concentrate on your VISION…We’ll handle the TECHNOLOGY!