A Data breach has many repercussions that seep down in the organization hierarchy and cause a lot of harm to the company’s reputation amongst other things. It erodes customer loyalty and destroys brand reputation with a massive blow to the financial arm. A large cross-section of industry executives believe that cyber security threats with weak data security are concerning and need serious looking into.
Take a gander at the five most important ramifications of compromised data breaches to a company.
There is significant revenue loss after a data breach with majority of the companies ending up on the losing side after an IT system downtime that affects the pace of work.
Brand Reputation Under A Cloud:
Brand Reputation is the worst hit with a security lapse that destroys the brand image in the longer duration. Emails could have been leaked and privacy lost is a wrong turn to the company which you might have to live with. This leak could end in monetary payouts that has ramifications such as creating a bad name for itself with slip-shod data security.
Intellectual Data loss:
Revenue loss and brand loyalty fall-out is the tip of the iceberg as this data compromise will attack the intellectual property including blueprints, designs and strategies, especially with construction companies and manufacturing industries. Smaller businesses tend to be the worst hit because they are easier to attack. Losing intellectual data has infinite repercussions such as becoming an easy prey to the rivals who would not think twice about stealing this information.
There are hidden costs to this data breach that take a hit such as legal fees, insurance premium hikes and PR Investigations. Regulatory fines are another aspect that many businesses overlook. This fees comes into play when the clients private information gets breached on account of this company leak that had thousands of accounts played into the hands of the scamsters.
Security lapses are no less ordinary with pranksters sometimes changing a word or two in the website. This may seem harmless at the beginning but it can create a lot of damage with subtle changes going unnoticed. For eg: Hackers might change a few letters or numbers on your web page which might seem childish pranks at first but could turn into an ugly online ruckus.
A data security breach takes less time to bring off than your coffee percolator. 93% of the data breaches have taken place in less than a minute with 80% of businesses taking at least a week to realize it. Breaches have a landslide of an impact on the customer’s database that holds sensitive data and which could erode his savings and severely impact his brand reputation with customers losing trust.
It must be added that a data breach can be successfully compensated for by proving that you have suffered as a consequence of the data breach. So you can claim for both distress and harassment and the period under which you can appeal for a data protection claim is six years.