5 Reasons a Data Breach Costs More than you Think…

Industry Makes a Difference

There are numerous factors as to why data breaches can be very costly. The exact cost of a data breach depends on the industry in which your organisation operates. The most expensive data breaches are typically those in the financial or health industry. Imagine all the private and confidential information that is being leaked, potentially credit card numbers, healthcare history, payment history, and even things such as phone numbers and emails which can be obtained through a cyber-attack.

Reputation

Customer trust is hard to build but very easy to break. If a customer finds out that their information could potentially be leaked due to a fault in your business, such as poor information security, they are more than likely to stop using your company’s services. A poor reputation can quickly spread through word of mouth and social media backlash. Is it really worth it when your company could have invested in better information security?   

Smaller Businesses are Vulnerable

Cyber-attacks occur every day, and 43% of these attacks target small businesses. It’s crucial that all businesses, particularly smaller businesses have processes and procedures in place to protect their information assets. Many smaller firms have the mindset that they will not be a victim of a data breach because after all, why would you be a target as a small business? Well, unfortunately, smaller businesses are more susceptible to cyber-attacks as they often don’t have as many resources to invest in good security practices. Don’t let that be you!

Investments such as ISO 27001 (we discuss this more later in the blog) are worthwhile as they ensure you are meeting certain information security requirements and being audited by an external third-party assessor. Although it may seem a large investment, you can’t really put a price on reputation, and making sure your information assets are safe! It’s also worth mentioning that by having ISO 27001 (an information security management system) you will reap many more benefits such as the ability to attract new customers.

So, what happens if you have a data breach as a result of a cyber-attack? Let’s be honest, sometimes in spite of the measures your business has in place, cyber-attacks still occur. Cybercriminals are using constantly evolving methods of attack so it can be hard to keep up… therefore it is best practice to also have a plan in case the worst does happen. How you communicate and respond to a data breach is crucial, and with no plan set up, it is likely that your company’s response will be poor.

Ransomware

Ransomware attacks are the most common cyber-attacks currently, which means that many companies are preparing themselves in case one strikes them. The main question most businesses have is should you pay the ransom?

Ransom tends to be around six figures, which is a lot of money. Although some organisations have paid the ransom, law enforcement and current guidance state you should not pay the ransom.

By paying the ransom, there is no guarantee that you will gain access to your data or computer. In fact, your computer will probably still be infected, and you may be a more likely target in the future. Always make sure you have a recent offline backup of your most important files and data.

Become ISO 27001 Certified

We mentioned ISO 27001 earlier. In short, ISO 27001 is the internationally recognised standard for information security management systems. Becoming certified to the standard demonstrates that your organisation has met a set of information security requirements and has been audited to confirm this by a third-party body.

The standard offers many benefits including an improved reputation, increased trust with stakeholders, the ability to better attract and retain customers, and reduced risk of cyber-attacks and data breaches.

Support with ISO 27001

Are you in need of support when it comes to information security management?

If you want to protect your company’s information assets, implement ISO 27001 into your company and receive the benefits.

Click Here for more information on ISO or Get in Touch.

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