What Are the Main Consequences of a Data Breach?
Many businesses are embracing outsourced IT support. On average, businesses will spend nearly 12% of their budget for IT on outsourcing, which is more economical than an in-house IT team.
One of the most popular services that businesses look to outsource is IT security, with nearly half of businesses expecting to increase the amount of security tasks that they outsource. In today’s climate, cybersecurity is not optional.
Outsourcing IT services can be a good way to save money, but it also provides you with valuable resources to prevent and resolve data breaches. Hiring a cybersecurity expert might seem unnecessary, but a data breach would be even more costly.
What are the main consequences of a data breach? Here are a few things to think about.
The most immediate and hard-hitting consequence of a data breach is the financial impact. According to a recent study, the costs associated with a data breach have risen to over $3.86m on average. The costs can come from compensation, incident response efforts, investigations into the breach, new security procedures and measures, legal fees, and regulatory penalties.
When a data breach means the loss of sensitive data, there can be devastating consequences. Cybercriminals can wreak havoc with identifying personal information, such as names, contact information, images, IP addresses, and banking information. Biometric data is particularly valuable. The fallout that can come from such a breach could spell disaster for your business’ finances and reputation.
A data breach has a big impact on your present and future customers, too. In fact, around a third of customers will stop doing business with a company that has experienced a data breach, no matter the industry. For a business, that loyalty can be incredibly difficult to earn back, exacerbating the financial strain of the breach.
News, especially bad news, travels fast. After they cease doing business with the company, 85% of customers will tell others about the data breach, through word-of-mouth and social media. That’s a long-lasting impact on a company’s reputation, which will lead to fewer new clients and greater financial losses.
No matter the industry, all businesses need to take serious, careful steps to manage their sensitive data. You might not even be aware of all the data you hold, which leaves you at great risk. If you don’t know where to start improving your cybersecurity, outsourcing an expert might be the best thing to do for your business.
A cybersecurity expert will be up-to-date on industry security regulations and IT best practices. With their help, your business can solidify its network defenses to protect you, your employees, and your customers. A little effort now can prevent massive losses in the event of a data breach later on.