Since the start of the pandemic, cybercrime has been on a tremendous rise within businesses and people’s lives. The FBI reported that they have seen an increase of over 300% in cybercrimes since the beginning of the pandemic. Businesses have been falling victim to all sorts of cyberattacks like phishing emails, ransomware attacks, malware, and more. These types of cyberattacks put the data of businesses and customers at risk and hackers often ask for a payment or sell that data on the web. This can ultimately lead to severe financial and legal consequences for the businesses that were victims of the cyberattacks.
Importance of cybersecurity
Cybersecurity is the backbone of modern business. All types of businesses have transitioned to providing digital operations for their services. This means the majority of business is done online. If the cybersecurity of a business were to be compromised, it can result in the business shutting down permanently. In fact, many studies have shown that the average small business closes within 6 months of a successful cyber attack. This grim reality makes cybersecurity a necessity for most businesses.
Additionally, many compliance programs require businesses to show that they are taking cybersecurity measures and they are protecting the data of consumers. If your business operates in sensitive industries like healthcare, law, etc., you need to be able to comply with all the data protection and cybersecurity compliance laws. Having a robust cybersecurity program in your business allows you to protect your data and meet compliance needs.
What happens if you don’t have adequate cybersecurity?
- Brand damage: Your business having a breach in cybersecurity can result in significant damage to the brand of your business. This can be irrecoverable if the breach was substantial enough. The bad media coverage along with losing the trust of your customers can result in your brand being damaged for years to come.
- Legal ramifications: There can be significant legal filings that can occur due to your business being breached. Depending on the data that was leaked, customers, vendors and government agencies can file lawsuits against your business. Oftentimes, it takes months before a breach is discovered and the damage will be done. The legal fees from having a successful cyber attack can cost a business significant money.
- Regulatory fines: Depending on the industries that your business operates in and where you are located, you may be subject to a variety of regulatory penalties. Federal and state regulatory agencies often fine businesses that compromise consumer data and the fees can vary depending on the severity of the cyber attack. Regulatory agencies are known to give hefty penalties if personally identifiable information like names, addresses, health data, social security numbers, etc. are leaked.
These are just a few of the negative consequences of having no cybersecurity infrastructure for your business. To learn how you can improve your cybersecurity, contact us today!