The year 2013 is synonymous with cyber attacks and numerous data breaches. Individuals and organizations worldwide are now more aware of widespread surveillance and cyber threats. But what are the costs associated with business security breaches?
1. Direct Financial Loss
Attackers may specifically target customers’ credit card numbers, employees’ checking account numbers, and the company’s merchant account passwords. Especially in the financial services industry, indirect legal fees or fines resulting from the security incident can significantly increase the costs, independent of whether the criminal is brought to justice.
2. Violation of Privacy
Employees are trusted to keep personal information private. Likewise, customers trust the organization to keep their credit card numbers and credit histories confidential. If this privacy is violated, legal consequences arise.
3. Lower Competitive Advantage and Lost Sales
Theft, modification, destruction of propriety sales proposals, business plans, product designs or other highly sensitive information can significantly give competitors a marked advantage. Sales are also lost as a consequence of the cyber attack, and the repercussions ensue long after the incident takes place.
4. Damage of Corporate Reputation and Brand
Building and maintaining a corporate image and establishing trusted relationships with customers and business partners is critical to an organization. However, the corporate credibility and business relationships can be considerably damaged if proprietary or private information is compromised.
5. Loss of Business Continuity
In the case of a service disruption caused by a data breach, the IT team must quickly address the problem, so as to minimize downtime of the system, and restore data from backup files. Nonetheless, when mission-critical systems are involved, any downtime can have catastrophic consequences. In other cases, when lost data may have to be meticulously reconstructed manually, this decreases the amount of time that systems are functioning to below acceptable levels.
Business Network Protection
As discussed above, the consequences associated with security breaches are vast and long-lasting. Several organizations now use remote access solutions to maintain a high level of security for sensitive corporate information. In particular, many companies opt for SSL VPNs due to their flexibility – SSL VPNs are not restricted to employee remote access, but incorporate partners, contractors, and possibly also customers. The increasing amount of hacking attacks and sophistication of security threats demand the use of advanced network security via a high-quality VPN as a component of a comprehensive business security policy.
If you are interested in how to secure your network from cyber attacks, we invite you to visit our website www.hobsoft.com. On our website you will be able to find data sheets of our VPN solutions as well as interesting e-books and whitepapers.
Author: Hazel Farrugia
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