Most people know the dangers of being online and having a business that is not protected by a cybersecurity company.
However, when you are new to the world of online businesses, this can seem like a minor issue, with many new business owners deducing that it will never happen to them. As the old saying goes, never say never!
So, how can having poor cybersecurity impact your new business and what are some ways to protect your business’s data? Here is a quick guide to follow!
Data Leaks
Data leaks are a big deal, irrespective of what has been leaked.
For many cyber thieves, new businesses are seen as sitting ducks. They are often new to the world of digital security and as such, they are easier to target via emails or via traditional hacking.
A data leak in a business will inevitably lead to data that is sensitive being turned over to potential criminals, which has a lot of secondary ramifications for the individuals that the data belonged to, as well as your business. One way you can prevent data leaks is to have a security system set up that is targeted to the specific needs of your business model and has a managed detection and response program, or MDR. In the event of a data leak or breach, you will be alerted to this issue, and action will be taken by the security company.
Lost Money
How does poor cybersecurity equate to lost money?
It’s simple. Suppose your business were to have the aforementioned data breach or leak. You would have to shut down the servers, the emails, and all internet-based activities for your business, which could cost a fortune in lost revenue if you do not have a system in place to mitigate this threat.
As mentioned before, many security services that are often third parties, will have a way to manage a data breach quickly and effectively, which will not cost your business an excess of money while they get the system back online. If you don’t have this option, the shutting down of the business and getting everything working again can take much longer, driving up lost earnings. It is estimated that the average shutdown time following a data breach costs businesses a whopping $64,000 per hour.
Lost Customers/Clients
Poor cybersecurity will never bode well for customers or clients of your business. In most cases, it is their information that is hacked, or stolen, usually via credit card or debit card information, which will prevent them from coming back to your business in the future.
The end result is that you lose clients or customers, which can then lead to an additional cost to attempt to get them back and regain their trust.
Poor PR
Remember what happened to Facebook when there was a data breach? Its stocks dropped in value, people left the social media site in droves and to this day five years later, it hasn’t recovered financially.
The reasoning is simple. People no longer trust the platform and this data leak has caused irreparable damage to the reputation of Facebook. If your data and your customers’ data are not secure, and it becomes hacked, this sends one message to your customers: you didn’t care about their information being safe, and now it is gone. So, it’s best to avoid that PR nightmare and get the correct security settings in place before you have a breach or leak online. That way, your business’s public relations will remain on good terms!
Legal Ramifications
There are also legal issues to consider. If there is a data breach of your business data that is deemed to have been your fault due to poor cybersecurity, you will face legal issues. This can lead to lawsuits from the customers or clients whose data was lost, as well as hefty fines from the authority who oversees your business area. You may even lose your business and be deemed unfit to continue your trading.
