Data breaching is a common occurrence in today’s business world. A study conducted by the Ponemon Institute found that 43% of businesses experienced a data breach in 2017. Also, the average cost of a data breach for a business is $7.91 million.
Why are data breaches so costly? One of the main reasons is that they can lead to a loss of customer trust. In fact, 60% of consumers said they would stop doing business with a company that experienced a data breach.
This is why businesses of all sizes need to focus on cybersecurity. Here are 10 reasons why:
- To protect their customers’ data: Customers trust businesses with their personal information, and they expect that businesses will take steps to protect it. If a business doesn’t have adequate security measures in place and a data breach occurs, customers will likely take their business elsewhere.
- To avoid costly fines: In some cases, businesses can be fined if they don’t have proper security measures in place. For example, the General Data Protection Regulation imposes hefty fines on businesses that experience data breaches.
- To maintain customer trust: As mentioned above, a data breach can lead to a loss of customer trust. This can be detrimental to a business, as customers are essential for its success.
- To prevent reputational damage: A data breach can also damage a business’s reputation. Once word gets out that a business’s customer data has been compromised, it can be difficult to regain the trust of potential and current customers.
- To avoid legal action: If a data breach results in the theft of customer information, such as credit card numbers or Social Security numbers, businesses could face legal action from their customers.
- To protect their employees: Employees’ personal information, such as their Social Security numbers and addresses, is also at risk if a data breach occurs. By taking steps to protect this information, businesses can help to prevent identity theft and other problems for their employees.
- To stay compliant with laws and regulations: As mentioned above, there are laws and regulations in place that require businesses to take certain steps to protect customer data. By failing to do so, businesses could face fines or other penalties.
- To avoid being blacklisted by credit card companies: If a business experiences a data breach and customer credit card information is stolen, the business could be blacklisted by credit card companies. This would make it difficult for the business to accept credit cards as payment from customers.
- To keep their competitive edge: In today’s business world, cybersecurity is becoming increasingly important. As more and more businesses focus on cybersecurity, those that don’t will likely lose their competitive edge.
- To boost productivity and lower information technology costs: By investing in cybersecurity, businesses can actually boost productivity and lower information technology costs. This is because employees will be able to work more efficiently and effectively when they’re not worried about the threat of a data breach. Additionally, businesses can avoid the high costs associated with data breaches, such as hiring forensic analysts and notifying customers of the breach.
As you can see, there are many good reasons for businesses to focus on cybersecurity. It’s not something that should be ignored or taken lightly. Implementing effective security measures can be costly, but the cost of not doing so is much higher.
Cybersecurity is an important issue for businesses of all sizes. If you’re not already taking steps to protect your company, now is the time to start. Don’t wait until it’s too late.