Cyber attacks can have devastating consequences that go beyond financial problems for businesses—they can even lead to permanent closure of a business. In fact, Forbes reported that 60% of small businesses shut down 6 months after experiencing a data breach.
Not only is your business at stake, but a cyber breach could also mean massive compliance penalties, litigation, and the loss of your company’s reputation. When it comes to dollar figures, yours could be on the line.
You can’t ignore your cyber security strategies if you want a protected business. Let’s talk about it.
Compliance Penalties of Cyber Security Cost
Businesses can’t afford to ignore their cyber security strategies—literally. Between stolen data, loss of reputation, and compliance penalties, the costs of a cyber attack can easily skyrocket.
Compliance penalties can be expensive, more expensive than you think. According to ImmuniWeb, Morgan Stanley—a national banking institution—paid a $35 million fine for their continuous failure to secure the replacement of company hard drives and servers. In turn, the data of 15 million customers was exposed. Whether it’s a slip of the mind or a conscious decision, cyber security costs go beyond the scope of money.
Litigation is used to describe the process of taking someone to court, and court is costly. Even after the breach is contained, a company may be sued for negligence in protecting their data—regardless of whether or not they have cyber security measures in place.
This is exactly what Capital One experienced in December of 2021. Eventually, the company settled and agreed to pay $190 million after a class-action lawsuit was filed against them by customers whose data was exposed after a data breach in 2019. This data breach affected over 100 million of Capital One’s customers.
Loss of Reputation
Cyber security costs include reputational damages that can often be the most severe consequence for businesses that suffer from cyber breaches; customers may no longer trust them to protect their personal information nor want to do business with them. Without customers, businesses can go on a downward spiral and permanently close their doors.
Permanent Closure of Business
The worst possible outcome of a security breach is the closure of a business. Cyber breaches are so costly that businesses can’t always recover from them financially and may have to close their doors for good.
How You Can Protect Your Business from Paying for Cybercrime
If the scenarios above scare you, it’s time to start prioritizing fortifying your cyber security. With better security, your cyber security costs will be much lower, and you can protect your business from paying for the costs of a cybercrime attack.
1. Managed IT Services
Managed IT services provide a comprehensive strategy for protecting your business from cybercrime. A managed service provider can help you implement the latest cybersecurity technology and best practices to protect your systems.
2. Security Audits
Security audits are an invaluable tool for keeping track of potential security issues in your network or system. Not only does it give you an understanding of the security measures you need to take, but it’s also a great way to identify any weaknesses in your system.
3. Quality Security Solutions
Quality security solutions are essential for protecting your data and systems from cyber threats. Investing in quality products such as firewalls, antivirus software, intrusion prevention systems and other tools will help protect against outside threats. These solutions can keep your cyber security costs down.
Don’t Run Your Business into the Ground—Trust Telewire
Don’t risk running your business into the ground due to costly cyber security threats—trust Telewire to keep your data safe. With our knowledge of defense, compliance, and remediation tools, your business can steer clear of data breaches and avoid the consequences that come with cybercrime.
It’s time for your business to prioritize cyber security and keep your cyber security costs to a minimum. Protect your business by contacting Telewire today.