Over the past several years, it seems as though we can’t go a week without another business getting hacked. The hacks that make the news have millions of victims, or their victims are high profile organizations such as Sony or the NSA. However, even if hackers don’t steal data from millions of people, they’re still expensive. Read on to learn why even “small” hacks are a big deal.
Financial Penalties
Let’s say that hackers attacked your company. They only stole 1,000 customer records out of 15,000. That’s a pretty small breach, right? You should just be able to sweep it under the rug and go on about your business.
The Federal Trade Commission (FTC) says otherwise. In August 2015, a US appellate court ruled that the FTC has the authority to sue firms that have suffered a data breach in which customer information was compromised.
Furthermore, if hackers stole credit card information, credit card companies can sue the banks that process the fraudulent transactions. In turn, the merchants have to dispute the fines and fight to collect the money they’re owed for the purchase.
Reputational Damage
There are hidden costs to a data breach, too. And they can also affect a business’ bottom line.
Whenever a company falls prey to a data breach, its customers lose their trust. They’ll be less likely to go back to that firm. Who wants to trust someplace where their personal information isn’t secure? While it’s difficult to estimate exactly how much damage to a corporate reputation costs in dollars and cents, the losses become clear on the revenue reports even as little as one financial quarter later.
Investments in Security
In the wake of a data breach, regardless of how many people were affected, your organization must heavily invest in security infrastructure. There are two reasons for this: your old security infrastructure might not have been compliant with relevant industry or government regulations, and your customers and partners won’t begin to regain their trust in you until you take this step.
If you don’t improve your digital defenses, hackers may strike again because you’re an easy target. Even if they don’t steal or access very much information, they’ve done immeasurable damage.
WinMagic: Protecting Your Data
Do you want to keep valuable information safe from hackers? Contact WinMagic today. Since 1997, WinMagic has been producing award-winning encryption solutions. We were awarded the 2015 CATAAlliance Outstanding Product Achievement Award, and the 2014 SearchSecurity Readers’ Choice Award for the Best of Encryption.
Click here to request a free evaluation, or call us at 1 888 879 5879.
