As per the FBI, cybercrime is rapidly growing and is rising among different businesses. Cybercrime involves criminal activities to affect the company’s security or to steal the data and financial information of a company. Most of the businesses that are operating online have to deal with this serious issue. According to the latest survey, 67% of the companies had experienced at least one type of cybercrime. Fighting this crime can sometimes be very expensive. Most of the time, it evolves again as new threats emerging from your security system.
Internet security might not be the priority while starting a business, but neglecting the potential risks could harm the company. One of the mistakes done by the executives and managers is that they assume their business is at a low risk of cyber-attack as compared to the bigger businesses. However, small businesses are also at an equal chance of becoming the victims of cyber-crime. The most common reason for this is that small businesses might not have the resources that large companies have, making them more vulnerable to cyber-attacks.
While considering the security of your business, it is vital to notice the essential nature of cyber-attack. Internet-related offenses may fall under two general categories:
- Data Theft
- Digital Vandalism
Data theft involves the misuse and stealing of financial data, customers’ records, or any sensitive information regarding a specific product or any strategic plan for the business. On the other hand, digital vandalism consists of viruses, several kinds of malware, hacking the business website, or business-related social network accounts. No matter in which category a cyber-attack might fall under, it can cost your business massively. The financial data and all the account work of a company get recorded with bookkeeping.
A cyber-attack can cause severe damage to a business. Cybercrime is capable of severely affecting your bottom line, the reputation of your business, and your clients’ trust. How cyber-crimes can impact business can be classified into three major categories which are:
- Financial
- Reputational
- Lawful
Economic Damage of a Business
One of the most common impacts of cyber-crime is economic damage to a business. Cyber-crimes can result in a considerable financial loss that can arise from:
- Theft of business data
- Theft of economic data ( for example, bank details and details of payment cards)
- Stealing of money through online transactions
- Interruption to trading (for example, incapability of carrying out transactions online)
- Loss of contract or business
Businesses that have to deal with cyber-attacks also usually experience the costs associated with repairing affected networks, devices, and systems.
Damage of Business’s Reputation
Cyber-crimes can impact the reputation of a business as well. In business, trust is an essential element for building a relationship with customers. Cyber-attacks can harm a business’s reputation and can affect the trust that customers have for your business. In an aspect of business reputation, cyber-crimes can lead to:
- Loss of potential clients
- Sales loss
- The decrease in profits and productivity
The effects of reputational harm can have adverse impacts on the suppliers of a company. Additionally, it can affect the relations that you have built with your partners, stakeholders, and other parties that have invested in your business.
Legal consequences of Cyber-attack
Data security and protection laws require a business to manage the privacy and security of a company’s financial data, its employees, and its customers. If the information is compromised deliberately or accidentally, and you fail to deploy the proper safety measures, a company might face fines and regulatory permissions.
It is essential to take all the safety measures for minimizing the impacts of cyber-attacks on a business. An effective cybersecurity incident response plan can help a business in reducing the risks and effects of cyber-attacks. It can help you in:
- Reducing the impacts of the cyber-attack
- Cleaning up the system and networks that are affected
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