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How Cybersecurity Breach Affects Companies

By Admin / Published on Wednesday, 04 Nov 2015 08:57 AM / Comments Off on How Cybersecurity Breach Affects Companies / 270 views

Cybersecurity Breach Technology may be evolving in many positive ways, but there are also negative aspects to it. Cyber attacks have also become more frequent, more stressful, and more complicated to deal with than ever before. Sometimes it seems as if news about a security incident or data breach is no longer new—because it happens that often these days. This is why strengthening computer security should be one of the top priorities for businesses today.

The past few years saw a shocking number of successful massive cyber attacks take place across the globe. This means hackers have the expertise to slip through any company computer defenses easily. No matter what the size of business is, criminal defense attorneys in Houston note that breach of computer security can have a dramatic impact on the bottom line. The following discussion breaks down the most common consequences.

Consumer Mistrust

In most cases, stolen personal identifiable information could lead to customer distrust. After a cybersecurity breach, those affected will decide whether to revisit the company or reduce their dealings. Consumers are always looking for safety, transparency, and prompt responses. Service quality is important and consumer reaction to data hacks can affect spending behavior and brand loyalty. Quarterly sales can suffer, as it can be difficult to lure back consumers back in.

Profit Loss

Another overwhelming result of a cyberattack is profit loss. Due to the decrease in the number of customers, a company may experience significant profit decline. It may take months to fully recover, not to mention it can be costly to have more employees than clients. It’s like wasting money by adding supplies, while the demand continues to go down. Dealing with breaches in computer security also includes costs for litigation, investigative fees, and fraud claims.

Reputation Decline

In the age of social media, news about cyberattack can quickly spread like wildfire. This could have negative effects on a company’s reputation. Ruined identity is damaging to a business, especially if the breach is an internal issue.

When it comes to hacking, everyone is a target. Even Walmart, Sony, Apple, and Target Corp. were not immune to cybersecurity breaches. Affected businesses must rethink their approach, and anyone falsely accused of involvement in the same — no matter how minor the case — should get legal help.