When a Security Breach Leads to Business Closure
When a company suffers a data breach, the costs can be exorbitant. But protecting sensitive information is about more than just dollars and cents; it’s about brand loyalty, name recognition, and a company’s reputation. Having a vulnerable security system can be fatal for some companies. Small business owners need to be aware of the real costs of a data breach and learn why it’s so important to protect their business from hackers and other cyber security threats.
IT Manpower and Increasing Overhead
When a data breach happens, the first toll it takes on a business is manpower. Employees will be rushing around in order to identify the cause of the leak, retrieve any lost information, and get the entire system up and running again. The business will probably have to bring on a team of IT specialists to make sure that the business is protected against any vulnerabilities. Simply put, all of those extra expenses add up. According to the National Cyber Security Alliance, the average cost of a data breach is $80,000. Most small businesses simply cannot afford to incur the cost of such an expensive mishap.
Time Away from Your Customers
The cost of a data breach doesn’t end there. All of this confusion and scrambling to get the system back online usually results in time away from customers. If the business cannot function in the days or weeks after a data breach, the business has no choice but to turn their customers away. That usually means a hefty loss in revenue. In some cases, the cost of data breach can far exceed the original $80,000 average. It all depends on how the business operates and what’s at stake for their customers.
A Tarnished Reputation
Despite all of the extra expenses and the time away from customers, the biggest imposition of a data breach is ultimately the affect it has on a company’s reputation. Almost all businesses have their customers’ payment information on file. What is a customer supposed to think when they see their private information in the hands of some malicious third-party? They will almost immediately lose faith in the business that’s supposed to have their back. This could result in a mass exodus of customers, who will take their business to a company that’s seen as more reliable. Even if the business takes steps to improve their overall security, one data breach is one too many. Some companies never fully recover as they watch their reputation get dismantled overnight.
Data breaches are the one thing that small business owners simply cannot afford to overlook. It all starts with a finely tuned security system and a stellar IT department that knows how to keep a company’s information safe and sound. Come to The Network Support Company today for a range of small business security solutions.