Cyberattacks have Costly Consequences for Business
Advanced and Persistent Threats (APTs) have grown exponentially in 2016, in terms of malware variants and the number of perpetrators taking advantage of Canadian small businesses. Of the disturbing number of attacks on businesses this year, 75% of them involved malicious intent.
The top three industries suffering from these vicious cyberattacks are health care, manufacturing, and financial services. This should not be surprising, given that those verticals inherently deal with sensitive information like personal data, intellectual property, physical inventory, and massive financial assets. These attacks can result in data loss and extensive downtime, which costs valuable resources to fix. Each of these issues can cause major financial loss for a company.
A security breach can cost a small business nearly $40,000
According to Business News Daily, Kaspersky Lab recently conducted a study that suggests that the average cost a small business faces to recover from a security breach is $38,000. The reasons? Firstly, the company will lose business opportunities during downtime, not to mention spending roughly $10,000 to cover the professional services they will need in the aftermath of the cyberattack.
Just a few of the many professionals that may need to be consulted after a security breach include: IT consultants, security teams, lawyers, and accountants. The downtime alone can approach $25,000 in costs. In addition to the direct costs involved with a cyberattack, there are also indirect expenses that a company may incur to guard against a future security breach. Some of these may be expanding staff, additional training, and upgrading the IT infrastructure.
Cyberattacks can destroy a company’s reputation
A security breach can cost a company much more than just money, though taking a hit to the budget is significant enough. Cyberattacks often result in the loss of sensitive data, much of which is related to the company’s customers and partners. This means that the problem doesn’t stay localized to the company itself, but ripples out into the business community that is closely connected with it.
This can cause a serious loss of face for the company, which is compounded by the downtime that interrupts customer service. While some customers may be content with an apology and continue to place trust in their partner, there will be others who will swear off that brand and take their business elsewhere. Cyberattacks are costly for the budget and the reputation simultaneously, which is why it is important to have effective defense measures in place.
A great IT solution will help companies prevent security breaches that result in costly problems like total IT infrastructure lockdown, a company-wide shutdown, lost productivity, and lost confidential data. It can also protect sales and profits, and maintain the reputation of a brand to keep business thriving.