The Devastating Effects of Cyber Attacks on Business and How to Prevent Them
With increasingly advanced hacking technology and social engineering techniques, cyber-crime is increasingly sophisticated every new day. Hackers come up with more nuanced counter-approaches for every breakthrough in cybersecurity. This means companies must continue to update their cybersecurity or risk falling into attackers’ hands.
For virtually every business today present online, cybercriminals work day and night to find and take advantage of loopholes. More troubling still, the methods used to lead companies to cyber-attacks are particularly difficult to detect for those without up-to-date information. Many cyber-attacks may even be disguised to get victims into downloading them on your device as a precautionary measure.
Malicious software, for example, can be covered up as a free antivirus or even a VPN. If the software enters your systems, it’s difficult to detect and can’t be easily removed. But what effect do cyber-attacks have on your company?
You can lose crucial corporate information
A successful cyber-attack could cause your organization to lose critical information including customer information. Attackers can use this data to demand restitution or to annoy their customers.
The loss of customer information to hackers has led to a reduction in the financial and healthcare industries in many companies, including billions of dollars. When hackers stole your customer information, you risk falling into endless litigation and ultimately declare bankruptcy. The server can be removed or compromised by a virus or malware with massive losses. Data recovery takes time and can be very expensive.
Stolen Personal information may be used to harm you and your customer’s
Personal data and identity theft can be used by hackers for impersonation. For example, they can use the data from their customers to purchase illicit goods on the black market, thereby placing their credibility at risk. You can also use personally identifiable information to receive credit and send alerts to your customers. You can cancel outstanding and active orders if your customers find out that you have exposed their data to hackers and are looking for services elsewhere.
And as previously noted, the authorities may report to you endless investigations, damaged reputation and, in the worst-case scenario, bankruptcy or withdrawal of government operating licenses.
Cyber-attacks can disrupt your business activities
In minutes, severe cyber-attacks could delay or take weeks to locate and rectify your online operations. For example, a DDoS attack has the power to shut down your website in less than a minute. Even the most popular websites can be described as such an attack. For example, in 2016, PayPal, Twitter, and some other major sites were reported as a DDoS attack. There is a lot of ransomware that defaults websites and only grants access after certain conditions are fulfilled.
A cyber-attack can drive your business to bankruptcy
Within six months’ time, at least 60% of cyber-attack firms collapse. As already mentioned, a cyber-attack involving the loss of customers can lead to endless lawsuits and therefore to companies becoming bankrupt. Again, if customers become breezed by cyber-attacks, they are likely to keep themselves completely out of business. Small and medium-sized businesses are the most likely to have cyber-attacks compared to big companies.
This is because they do not have the financial resources to combat cyber-attacks’ reputation damage. Security Magazine estimates that a single cyber-attack costs $11.7 million a year.
How do you protect your business from cyber-attacks?
It may take different forms to protect your business against cyber-attacks. The list is long, ranging from the development of strong passwords to the installation of strong anti-viruses. Exploring with you some of the main options.
- Using strong login passwords
A popular recommendation to combat cyber-attack but worth mentioning. Powerful passwords, consisting of symbols, letters, and numbers, with at least 8 characters help you restrict access to specific locations. Make sure you secure your company files and accounts with passwords you can remember easily.
- Backing up all your business information Make sure all company details are backed up. This is important because you have a Launchpad to continue if you lose your parent information.|
- Encrypting your business data It guarantees that no outsider can access your customer’s contact by encrypting your business information. Take the time to compare VPN providers extensively. It helps you to select a company that best preserves your anonymity online.
- Installing robust antivirus/antimalware software Eventually, you can download reliable anti-virus software to help you identify and prevent potential hazards. Consider also limiting access to sensitive departments to the number of employees so that you minimize risk.