The Dark Side Of The Web: 5 Ways A Cyber Attack Can Damage Your Business
These days, businesses rely on the internet and related technology more than ever before. Many businesses use virtual technology to store important data, to communicate with customers, and even to sell and/or offer their products or services. As such, a cyber attack of any kind can do major damage.
Cyber attacks can be defined as malicious attacks performed by hackers or, in some cases, even by ill-intentioned competitors or angry past customers or employees that are intended to do harm to the business and its operations in some way. And, unfortunately, such attacks are becoming more and more common, which is why protecting against them is more vital than ever before, especially when one considers the five major ways in which they can severely damage a business, sometimes beyond repair.
Danger #1: Daily Operations Could Be Derailed
While cyber attacks can have many sinister effects, sometimes the smaller impacts can be just as devastating. For instance, many cyber attacks result in a company and its website and virtual services being down and unavailable for the day or longer. And, while that’s a small impact compared to other possible issues, it can still do some major damage to a business.
The time your online services are unavailable is time customers lack the consideration and attention they need. This can result in lost profits and customer frustration. It can also lead to lost customers in general, especially in today’s hyper competitive business world. Worst of all, this type of downtime can cause a lack of trust between clients and the business. Cyber Liability Insurance and other protective measures are, fortunately, intended to offer aid in situations such as these.
Danger #2: Damaging Data Leaks
While being “down for the count” for a business day or two can do serious harm, one of the worst impacts of a cyber attack is a data leak. Data leaks occur when a cyber criminal manages to hack into a company’s records and gain access to sensitive information. This might include contact information, credit card information, or simply the fact that the user uses your business and its services. Once that type of information is in the wrong hands, anything and everything can be done with it, which could signify ruin for a business and its reputation.
Danger #3: Tricky Transfers
When a business suffers a cyber attack, it’s not just its customers’ financial information that might get leaked. Sometimes, businesses themselves have their financial information, such as banking account and routing numbers, compromised. This can easily lead to fraudulent transfers, spending, and more, all of which can spell financial ruin for a company without the right protections in place.
Danger #4: Litigious Customers
The last thing any reputable business wants is to hurt its customers. Unfortunately, when secure information gets compromised due to a cyber attack, that’s exactly what can happen. A client could potentially face identify theft, financial problems, or even issues with reputation and credibility if secure information gets leaked. And, if your business leaked this information, it could be held liable. Being sued is certainly not good for a business’ reputation or its finances.
Danger #5: An Inability To Operate
Worst of all, when a business faces one or more of the consequences of a cyber attack, it could be forced, ultimately, to close its (real or virtual) doors for good. Sadly, many businesses do not recover from the effects of cyber attacks.
For these reasons, it’s more important than ever for businesses to protect themselves and their assets. Protection starts by guarding against cyber attacks but should also include some kind of insurance just in case the unthinkable happens, as it all too often does.