The risk of a data security breach could be a lot scarier than they seem. They’re clearly scary, but it’s estimated that when small businesses experience a data breach, 60 percent of them are out of business in the next six months.
That means one thing: it’s essential that you’re aware of data breaches and how to defend them. We’re here to give you some more information on what a data security breach can do to your business.
Data Security Breaches: What Can Happen?
We’ve compiled a few of the lesser-known facts about what happens to a business when they have a data security breach.
1. The Business Can Fail
Often times, and usually due to the list items that follow this one, a business will fail after a security breach.
The financial stress and difficulty that follows having a system-wide interference are typically too much to handle for small businesses.
2. You’ll Have Fines
If the data that’s stolen or breached is highly sensitive and reveals details about other companies, it’s likely that you’ll experience a fine for releasing the information.
This is more likely if you’ve entered into agreements concerning the privacy of information you share with other businesses.
3. Ransom Is a Reality
While we aren’t dealing with old-timey pirates or kidnappers, you may be dealing with the type of criminal that will hold information over your head in exchange for money.
If this happens, you should go directly to the police and take it from there.
4. Halted Business
In the wake of a data breach, it’s likely that a business will have to put all of its efforts into recovering.
This means a loss of business during that time, meaning lack of revenue.
5. Damaged Reputation
Whether you like it or not, a data breach is certainly a bad mark on the reputation of any business. This is especially true if you’re a business that deals in the area of security.
6. Frustrated Employees
The fork in your business may require employees to take on new responsibilities. If that’s the case, this could add a great deal of stress to them and you.
If the breach is bad enough, you may even struggle to pay your employees.
7. Legal Fees
The police getting involved means that your criminals are more likely to be found. It also means that you’re going to have to pay court fees and legal costs.
As we see time and time again, these fees can be crippling for any business in legal situations.
8. Customer Repercussions
The breached data not only affects you, but your customers’ private information is in jeopardy as well.
You’ll need to contact them and they may have their own frustrations with you apart from your dealings with the courts.
9. Lack of New Customers
Your standing customers may disown you, but new customers may not even bother to risk working with you.
Even if your data security is tenfold after the breach, people aren’t going to want to risk their personal information with a business who could release it.
10. Higher Insurance Rates
A person’s car insurance goes up if they get into an accident. The same is true for businesses and data breaches.
The culmination of the factors listed above is the reason that most small businesses don’t have the resources to come back from a significant data breach.
Don’t Forget the Environment
Data security breaches aren’t just contained to the world of information. Processes are disrupted, errors occur, and these things can all lead to possible disaster and pollution.
This is especially true when the attacks come to energy, factory, and oil companies. Visit our site to learn more about how you can keep your business, and the environment, safe.