The cost of data breaches has skyrocketed since the pandemic.
It is often employees who, through misuse of information, endanger company data.
If you cringe every time you read a headline about a massive data breach, buckle up. The problem typically gets worse within minutes if left unchecked. Data breaches are costly to recover from , so it's critical for businesses to learn and practice prevention techniques.
This is a growing threat , but businesses don't always know how to prevent it or what to do if it happens. A data breach damages the entire business structure and is also very expensive.
The dangers of a data breach
An IBM security study reveals that the average annual cost of a corporate security breach is $4.24 million . This figure is 10% higher than in the years before the pandemic. Contrary to popular belief, the costs of a data breach can be existential. 60% of small and medium-sized businesses go bankrupt within six months of a large-scale data breach.
To prevent this from happening to you and to help you find a solution, we'll tell you the 8 most common ways in which a data breach can put your business at risk:
1. Misuse of data
One in four data breaches is caused by employees, not outsiders. This is important, as companies not only need to secure the data they collect, but also know for sure how it is used.
Since the GDPR was implemented in Spain, businesses may face pharmaceutical email list fines if someone in their company misuses company data. And with a fine, the business can be in jeopardy.
2. Large-scale data breach
A large-scale data breach is a disaster for a company's public image. Major data breaches make headlines and negatively impact consumer trust in the brand.
A PwC report found that 69% of consumers believe companies are vulnerable to hacking. Meanwhile, 87% of consumers are even willing to look for another provider if a data breach occurs.
3. Sanctions, fines and penalties
Misuse of data can lead to a company receiving fines, penalties, sanctions and legal costs, which can be huge and last for years. The company could have to pay millions in penalties.
4. Fewer customers
Once a security breach occurs, customers will doubt the company's reliability. Sure, employees at the company can spend hours documenting their processes and assuring their partners that their data and reputation are safe. And if a security breach occurs, all customers will have a reason to back out.
5. Changes in the business model
The company's reputation could be damaged by such an incident. This could affect the company's business model.
6. Commercial risk
Once a security issue is encountered, the company could be identified as a commercial risk in its sector. And that will basically put it out of business.
