Reputational Damage After a Hack
What's the damage after a hack, and can it be prevented? Read more about it in this blog on the damage after a hack.
Nowadays, it's almost certain that a business will suffer serious reputational damage after a hack. For example, when a system or site goes offline, direct revenue is lost. Besides direct damage, the organization's integrity is also lost. The image the business has built up is damaged after a hack, especially if customer data has been stolen. Reputational damage is something you always want to avoid as a business. That's why it's important to take cyber security seriously. In this blog, we tell you more about reputational damage after a hack, and how you can prevent it!
Why reputational damage after a hack?
The first effect of a hack on a business's reputation is often a feeling of insecurity among its relations. These relations will worry about their personal information and wonder whether their data is safe when doing business with the company. This varies enormously by industry or sector in terms of how important customers find this. For example, you can understand that just an email address is experienced as less damaging than banking details.
But why is it bad to lose this data? Hacking just a name + email address shouldn't be underestimated. This is usually the starting point for countless phishing emails or other attempts by hackers to steal sensitive information. The personal data continues to be resold on the dark web for years to come.
Financial damage after a hack
The second effect is the financial damage the business suffers. Taking certain systems and applications offline can cause an organization to lose an enormous amount of revenue. For example, a DDoS attack on a webshop can cause it to lose several days' worth of revenue. In addition, customers (who have a purchasing need) move on to the competitor's website, which causes a structural loss of customers.
Internal processes can also come to a halt. If files get encrypted during a ransomware attack, employees may be less productive or unable to work at all.
Preventing cybercrime
The best way to avoid reputational damage resulting from a hack is by building a strong, robust security system. Simply put, boosting your cyber security. Businesses need to regularly check and update their IT systems to make sure they meet the latest security standards. In addition, businesses should also offer training programs for their employees to help them keep their IT security knowledge up to date. This is known as cyber security awareness training.
Prevention is better than cure, even when it comes to cyber security. In many cases, the wallet gets opened (significantly) at the moment it's already too late. By having your cyber security in order and, for example, periodically testing your networks, systems and applications for vulnerabilities, you can avoid a major risk (pentesting).
Want to know more about boosting your cyber security? We've written a blog with five cyber security tips! Or get in touch with Tozetta.