IT has become a must-have for many businesses including small-scale enterprises. This is because of the many benefits that come with using IT in business operations. However, with technology, comes the risk of data breaches whose consequences can be threatening to any business. Here are the major consequences of a data breach.
You might find this helpful: 3 Steps to Stronger Cyber Security
5 Consequences of a Data Breach
Finances and Revenues
Most cybercriminals that use malware on a system usually aim to jeopardise the financial stability of the firm. If not, the goal is normally to gain unauthorised access to the business’s information. Either way, data theft may have serious negative impacts on a firm’s revenues. Additionally, malware that leads to system failure hence downtime also contributes to loss of revenue. Are you aware of the top 7 types of malware that can cost your business?
Brand Value and Reputation
Normally, a data breach exposes the business’s secrets to outsiders. This may have considerable negative impacts on the firm’s brand image and reputation. Being unable to prevent cyber-attacks also portrays a business as weak and incapable.
Customers will only want to deal with businesses that can safeguard their details. Many people are uncomfortable with their financial details being exposed. Unfortunately, data breaches may end up violating this customer right which can lead to loss of customer’s trust.
Migration of customers from a company to the competitors is any business’s worst nightmare. Not only does it lead to loss of revenue, but it also makes a business have a negative impression on potential customers. Sometimes, a data breach may lead to the collapse of a small business due to high rates of customer turnover.
More often than not, a data breach comes with many legal consequences. For example, some institutions such as banks are under the legal obligation to safeguard customer’s details. In the event of a data breach, many customers may decide to sue the firm. Not only is it costly but stressful as well.
Protect Your Business Today!
By all means, a small business should mitigate the risk of a data breach. The only way to do so is to get IT support in Perth like Rule Technology. Call Rule Technology today and secure your business from malware and cyber-attacks!