When Target got hit with a $1 billion cybersecurity issue last year, they had about $100 million in cyber insurance. That means that even a major corporation like Target had grossly underestimated the level of cyber insurance they needed. They’re not alone in incorrectly assessing the importance of adequate security solutions.
A data breach for your company means more than jeopardized data and lost customers. You could face lawsuits that could topple your profits for years to come. You could also suffer damage to your reputation that will follow you for just as long.
As data breach technology improves, smaller companies will suffer increasingly large losses. You need to make sure your security solutions are up to the task of defending your company and your customers. Here are 6 reasons to invest more in cybersecurity.
1. Cyber Crime Is An Epidemic
While you might think companies like yours are exempt from dealing with cyber crimes, think again. Nearly three-quarters of all companies experience some kind of data issue every year. Whether it’s ransomware emails that get circulated in your company or DDoS attacks hitting your servers late at night, attacks happen.
Your IT department might deal with some of these standard and small-scale attacks without informing you. They’re so common that they don’t become noteworthy for many small and medium-sized companies until they breach a layer of security.
If you’re in the financial sector, pharmaceuticals, or the energy industry, you’re in the highest risk industries for data breaches. These attacks are happening from hackers halfway across the planet. As proven by the DNC hacks preceding the 2016 elections, these attacks can happen to even the largest and most secure servers around.
Without the adequate measures taken for your security solutions, you could be leaving your customers at risk.
2. Losses Happen in Layers
While the financial assets seized by hackers can be huge, there are several ways an attack can destroy your company. Ransomware hacks demand that your company forfeit some of your assets to retrieve control of your system. These financial losses can destroy a quarter or even devastate an entire fiscal year.
However, as mentioned above, reputational damage can be huge. If customers no longer trust that you can protect their data, they’ll get services somewhere else, even from a company with inadequate security solutions.
You could lose intellectual property and sensitive data. With the Sony hacks of 2014, movies were released ahead of schedule, which damaged profits at home and abroad. The emails that were released caused several people to end their relationships with the corporation.
Losing digital content can happen at a moment’s notice and unreleased products can flood the market quickly. Once your products are out in the public, there’s no getting them back in the bag.
If you lose digital content and don’t have the insurance to recover those lost profits, you could leave shareholders, stakeholders, and customers empty-handed.
3. You Could Be Sued
If you haven’t adequately protected sensitive data, you could be at risk of being sued. For a company in the medical industry, data breaches lead to violations of HIPAA standards and practices. Once you’ve lapsed in compliance, it can be hard to achieve compliance in the future.
If you lose your customers’ information, like their credit card data, customers will destroy and replace their cards, requiring you to win their trust again. When you lose data on customers, credit card companies will come looking for you. Stolen data causes reputational fallout for their company as well as yours.
Customers need to feel like their data is protected and if you end up being responsible by having inadequate security solutions, courts won’t be kind. Your next few years could be filled with lawsuits from former clients and customers.
4. Cyber Crimes Can Stop Productivity
Without adequate security solutions, cybercriminals can get ahold of your most mission-critical technology. If a company takes down your email server, they have control over communications of your company.
Within all of those email accounts lie personal information, company secrets, and contact lists containing leads that might have taken years to build.
Nearly a third of attacks are aimed at enterprise resource planning systems. Since these are often centralized systems that have control over lots of important resources, getting ahold of one is like getting a chokehold on your company. Just one hack of this nature could bring business to a grinding halt.
5. The Cloud Can Take You Down
Since an increasing number of companies store and transfer their data on the cloud, hackers are paying closer attention to the cloud. The cloud is often the target of recent cyber crimes.
It’s more vulnerable to cyber threats and harder to track due to its nebulous nature. If a hacker can get access to admin privileges for your cloud, they can take over your entire organization. While cloud-based security models can help, your organization needs to have some bigger picture security precautions in place.
Focusing on security measures will allow you to have the convenience of the cloud without the looming fear of a breach. Keep your most sensitive data and any important login information off of the cloud. Keep everything encrypted and whenever possible, get every employee to use two-factor authentication for everything.
Taking security measures seriously is your best bet against breaches.
Security Solutions Require a Higher Budget
If you think about how much the Target example teaches us, it might be saying that you’re only paying a 10th of what need to be paying. If you’re only covering the most bare minimum elements of your company, you might be surprised in how much you have to lose. Stay protected and have more security than you think you need.
If you’re ready to start taking cybersecurity more seriously, contact us for more tips on what to look for.