The Real Cost of A Data Breach On Your Business

In the past year, 32% of businesses identified cyber security breaches or attacks. Whether you’re a small or large organisation you are still at risk of experiencing a data breach. And it’s important to be aware of what the implications are so that the right protections can be put in place to stop hackers.

Common attacks include phishing, ransomware attacks, viruses, malware or others impersonating an organisation in emails or online.  All of these involve the stealing of sensitive, confidential or protected data of your business and clients. But what happens after the breach?

Financial

There will always be financial implications for your business as a result of a data breach. Organisations that fail to protect the data they hold with the right technology or sufficient staff training risk facing fines of thousands of pounds, According to a government statistic, the average cost of cyber breach is £10,000. But for larger organisations this figure can rise to over £22,000. Can you really afford to cut corners when it comes to cyber security protection?

In 2014, Yahoo experienced a data breach which led to customer’s personal information being stolen. The breach wasn’t reported until 2016, meaning the organisation didn’t take the appropriate measures to protect it or report it. As a result, Yahoo’s UK arm was fined £250, 000 by the ICO (Information Commissioner’s Office).

Reputation

Data breaches don’t just have an impact financially via fines, they can also cost you later on in the supply chain. A breach can impact the relationship and reputation you have with your suppliers, partners and customers. In fact, potential customers are more likely to avoid doing business with organisations that have experienced a breach.

After a data breach, TalkTalk noticed a decline in their reputation and sales, mostly due to concerns over future data breaches. The company also received negative back-lash on social media with customers complaining publicly and demanding compensation.

One thing worth noting is that no matter how big or small, you must report a cyber breach to the ICO. If you don’t, you face receiving a fine. All reported instances are public knowledge and published on the ICO website. Would you trust a company to do business with you if they were a victim of a cyber breach?

TIME

The age old saying time is money certainly applies here.  According to the 2019 study by IBM, on average it took companies 206 days after the initial intrusion to first identify a data breach and another 73 days to remediate it. Whilst the recovery is taking place, not only do you lose valuable trading time, but organisations can be left with limited functionality, meaning staff cannot work productively. Afterwards, you also have to focus your energy and resources on re-assessing and implementing a new cyber security strategy.

The Marriott hotel had millions of guest details stolen by hackers in 2014 after their acquisition of Starwood Hotel and Resorts. This breach went undetected for 4 years and is one of the largest breaches of consumer data to date. The company are likely to still be recovering from this by completing more routine audits and dedicating more time to managing their data.

how to avoid data breaches

Human firewall

Your employees are your first line of defense when it comes to cyber security. Your organisation should train staff regularly so they are aware of cyber threats. Empower employees to flag potential breaches and question suspicious activity to stop threats before they happen.

Regular Cyber security research

Those responsible for overseeing the cyber security of your organisation need to ensure they are constantly up-to-date with the ever-changing threat landscape. This way, your organisation is more likely to avoid any upcoming or current cyber threats because you’ll be more prepared.

best of breed technology

It is important to ensure your organisation is equipped with the best technology to combat any potential threats. For example, cloud-based network protection software such as Cisco Umbrella works by scanning the internet to identify and block any malicious destinations before a connection is established. 

Stop data breaches before its too late!

Pure Cloud can offer several solutions that can protect, monitor and ensure your network is safe in real time.  We use best of breed products from some of the industry’s leading vendors. Get in touch and discover how Pure Cloud can support you!

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