Cyber attacks are dangerous business. Cyber assaults can result in power outages, the breakdown of military equipment, and the disclosure of national security secrets. They can lead to the theft of important and sensitive data, such as medical information. They have the ability to interrupt phone and computer networks as well as paralyze systems, rendering data inaccessible. It is not an exaggeration to state that cyber dangers have the potential to disrupt the functioning of life as we know it.
Threats are also becoming more severe. “Cybersecurity concerns infiltrate every enterprise and are not usually directly under the authority of IT.” Business leaders are pushing forward with digital business initiatives, and those executives are making technology-related risk decisions on a daily basis. Increased cyber danger exists, but so are data security solutions.” This can lead to the following impacts when an attack occurs:
Companies who wish to defend themselves against internet fraudsters must dig deep into their pockets. Firms may incur a variety of expenses, including:
- Cybersecurity skills and technology
- Notifying those who are affected of a breach
- Premiums for insurance
- Public relations assistance
Ransomware, which prevents employees from accessing IT systems until the organization pays a hacker, may also be a significant financial strain. According to Hiscox, 6% of businesses paid a ransom in 2019, resulting in a $381 million loss.
Changes in Business Practices:
Cybercrime may have an influence on enterprises in ways other than financial. Companies must reconsider how they collect and store information to ensure that sensitive information is not compromised. Many businesses have ceased retaining financial and personal information about their consumers, such as credit card numbers, Social Security numbers, and birth dates. Some businesses have closed their online sales due to concerns that they are not sufficiently protected against hackers. Customers are also more interested in how firms address security concerns, and they are more willing to favour organizations that are open and outspoken about the safeguards they have put in place.
Although it is difficult to measure, firms who are victims of massive cyberattacks may have their brand equity considerably harmed. Customers and even suppliers may feel less safe entrusting their sensitive information to a firm whose IT system has been compromised at least once before.
Intellectual Property Theft:
Product designs, technology, and go-to-market strategies are frequently among a company’s most valuable assets. According to intellectual property adviser Ocean Tomo, intangible assets accounted for 87% of the value of S&P 500 firms in 2015.
Much of this intellectual property is kept on the cloud, which makes it vulnerable to attackers. Within the last ten years, about 30% of US corporations have reported having their intellectual property stolen by a Chinese equivalent. Protecting a firm from cyberattacks is expensive and can harm the company’s relationship with its consumers. Businesses will have to keep one step ahead of cybercrime as it gets more sophisticated.