Despite the emphasis on data security these days, data breaches have continued to be an ongoing issue. It seems as though the more secure and advanced infrastructures become, the more cybercriminals are becoming advanced and finding new ways to gain access to valuable data.
Although organizations are well aware of the influx of data breaches, there are still many that are underprepared and have not implemented the basic security measures needed to prevent a cyber-attack. It’s vital for organizations to understand just how damaging the consequences of a data breach could have on their business. Let’s go over these major consequences, and what organizations can do to avoid falling victim.
5 Consequences of a Data Security Breach
Financial Loss
The financial impact of a data breach is one of the immediate consequences an organization would have to deal with. One of the most prominent hacking methods right now is ransomware, which is when malicious actors threaten to hold organizational data hostage until receiving a payment. While many organizations that fall victim to ransomware attacks believe it would be easier to pay the ransom and keep their data, more often than not the hackers will release their data even after a ransom is made.
Financial loss can also include compensating affected customers, incident response efforts, investigating the breach, investing in new security measures, and legal fees.
Damage to Your Reputation
Data breaches at an organization are not typically something their clientele or customers want to hear. News of data breaches can travel fast, and the negative press coupled with a loss in consumer trust can be a damaging consequence to the organization. If organizations can’t demonstrate they’ve taken the necessary steps to protect organizational data as well as customer data, they will very easily leave and go to a competitor that takes security more seriously. Damage to your reputation from a data breach can impact organization’s relationships with current customers, as well as their ability to attract future customers and employees.
Operational Downtime
Business operations will definitely be disrupted after a data breach. The breach will need to be contained and an investigation will need to be done to determine how it occurred and what systems were accessed. During this time, operations may need to be shut down, and the investigative process can take days, possibly weeks depending on the severity of the breach. Operational downtime is inevitable after a data breach, and it’s not something organizations will want to deal with.
Sign up for a No-Cost Compact NIST Cyber Security Framework Assessment
Legal Action
Under data protection regulations, organizations are legally obligated to demonstrate they have taken the necessary steps to protect personal data. If the data is compromised, intentional or not, individuals have the right to seek legal action for compensation. As data breaches have become more frequent, the amount of cases being brought to court have also gone up. Legal action can not only be a costly consequence, but also pack on the reputational damage as well.
Loss of Sensitive Data
One of the more obvious consequences of a data breach is the loss of sensitive data, specifically personal data. Personal data is any information that can be used to identify an individual, and if that data is compromised there can be major consequences to the individual as well as the organization.
Final Thoughts
Regardless of whether or not you don’t think your organization could fall victim to a data breach, the reality is that cyber criminals do not discriminate. There is no room for complacency in today’s cyber security landscape, and organizations must have a comprehensive security strategy in place that protects sensitive data, reduces threats and safeguards an organizations reputation.
Stay Secure with Kyber Security
As the cyber threat landscape constantly evolves, your security measures should be one step ahead. Kyber Security has dedicated professionals experienced in protecting your organization from ever increasing cyber threats. We will work tirelessly to keep your company protected from cyber-attacks.
Ready to put security first? Sign up to get started.
