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This year has been turbulent in so many ways due to the coronavirus pandemic. It has elevated our awareness of certain issues and it has caused many companies to change how they operate every day. Another shift in awareness that has already changed how we do business and has yet to show its full impact is our knowledge and awareness of cybersecurity threats. If anything, the pandemic has caused a spike in cyberattacks, as 80% of companies have reported an increase in these attacks during 2020.

Although these reports indicate that many of these attacks are meant for healthcare institutions and banks (there has been a 238% increase in attacks on banks), no business is spared. Small companies often perceive themselves as being under the radar due to their size, but in this instance, smaller entities are at no less risk, on the contrary. They often partner with larger organizations (which makes them great targets), invest less in cybersecurity, and are easier to penetrate as a result. 

The results can be devastating for your organization. The following repercussions are considered the most prevalent as a result of cyberattacks, so let’s see how security risks can compromise your business.

Loss of customer trust and loyalty

As soon as an attack occurs, you need to report any missing information and let your customers know that your business has been compromised. That alone is enough to wreak havoc on how people perceive your brand for the long haul. 

Once people find out that their sensitive information has leaked, or that such a possibility exists, they will never feel comfortable going back to you for services. Security measures are one of your strongest marketing assets, as promising secure transactions (and delivering on that promise) is vital for your success. When you place those security seals on your site, make sure that they reflect the true state of things in your business and that you do invest in keeping your customers’ data safe.

Long-term damage to your industry reputation

In addition to how your customers perceive you, your reputation in your entire industry will be compromised. Your potential business partners, investors, as well as your business community are bound to change their opinion of your business, knowing that you have compromised your business security and integrity. Even if you kick-start a new company under a new name, your leadership that has led to a breach will be what determines the viability even of that new business in your market.

Most companies will need to have dedicated IT teams to ensure better cybersecurity, so obtaining certificate IV in information technology and similar accredited programs will serve to help organizations prevent cyberattacks. With a strong IT infrastructure, security protocols, compliance, and risk management, you don’t have to worry about tarnishing your reputation.

Plummeting productivity for your business

A cyberattack is so much more than a nuisance. Although attacks can come in various forms, and many of them can be recognized and prevented early enough, such as phishing, the risk of business interference is high when an attack does occur. You need to deploy your disaster recovery plan, ensure that your business data is secure and stored safely away from the hacker’s reach, and that means temporarily halting all operations.

In addition to “fixing” the core issue and recovering the lost data (if at all possible), it’s vital your IT teams come up with reinforcements for your existing security plan, which has apparently failed. Until you completely overhaul your processes and make sure you’re back in the saddle, you cannot permit anyone to access your data storage, or collaborate through software that can be the source of the breach.

Financial loss 

Although companies do predominantly worry about retaining their customers and building those long-term customer relationships, another core issue might arise from a cyberattack: financial loss. On one hand, hackers might reach your business bank accounts, or they can reach your customer’s credit card information if you don’t implement optimal prevention. On the other hand, the cost of data recovery and returning to normal post-attack also comes at a high financial price.

Overall, an average data breach costs $3.92 million, which means that focusing solely on disaster recovery after an attack can cost significantly more than investing in firewalls, software, and other solutions to keep cyberattacks at bay. 

Life will, indeed, go on after a cyberattack, but it will be far more difficult for you to earn the trust of your community and customers, and to keep up with your business as usual. The long-term ramifications of cyber vulnerabilities that remain unaddressed go beyond reparable. Even if you can recover, the costs are not merely financial, but far worse – they can destroy your professional reputation. That is why you need to prevent cyber threats with optimal strategies and make sure your business greets the New Year fully equipped to protect itself and its long-term reputation.

About the Author: Elaine Bennett

Elaine Bennett is an Australian-based digital marketing specialist focused on helping startups and small businesses grow. She writes hands-on articles about business and marketing, as it allows her to reach even more people and help them on their business journey.