Cyber threats are malicious acts with the aim of stealing or damaging data, as well as generally disrupting your company’s digital resources. While a cyber threat is not the attack itself, it can serve as the blueprint for an attack. It involves software viruses, identity theft, password attacks, and trojans, to mention a few. Cyber threats are certainly a threat to the smooth business operation and can affect a business’ finances. Here’s a look at how cyber threats impact business finances.
Cybercriminals can use different ways to handcuff a company’s day-to-day operations. For example, they can infect a computer with malware that deletes valuable information. They can also block access to your website by installing malicious code on a server.
Cyber threats are a big deal as they lead to cyber-attacks. Cyber-attacks can cause electrical blackouts, loss of access to crucial business information, disrupted phone and computer networks, and theft of valuable data. As a result, the business operations will face serious disruptions. This may lead to a significant loss in revenue.
It’s wise for companies to invest in cyber security by hiring the services of IT experts. Top IT services in New York can help you manage business IT concerns, so you can focus on growing your business.
For every business, securing networks should be a top priority. When you operate a business without a secure network, you open yourself up to all sorts of cyber threats and the business disruptions they come with. When your systems are vulnerable, cybercriminals can steal data, but financial transactions you make online as well. In the event of this, you have no choice but to recover the financial losses due to these illegal activities. All of this will lead to an increase in your business costs.
Therefore, it is best to guard your business systems all the time. The financial security you get in hiring an IT service should outweigh the cost of hiring the same.
Customers may find it hard to trust businesses whose networks have been compromised by cybercriminals before. Unfortunately, trust is a crucial factor in building long-lasting customer relations. When you lose customer trust, you risk driving them into the hands of your competitors, which will ultimately affect your business and its bottom line.
When your business loses its reputation, it can also affect your relationship with your suppliers, business partners, and any third parties who invested in you. As a result, you may lose customers, sales, and profits.
As a business, you must manage all personal data you deal with regardless of whether it belongs to your staff or customers. If this data isn’t kept securely, the business might encounter cyber threats. These cyber-threats may result in a data breach, and at this point, you can expect fines and regulatory sanctions.
In situations where cyber threats affect large amounts of personal information, expect a civil lawsuit. These lawsuits often take years to settle and can be very costly. If the business handles healthcare and is under HIPAA compliance, it could face hefty fines for violations.
Also, companies often hire external help to notify customers of cyber threats and attacks and handle PR. Therefore, the aftermath of cyber threats may leave companies trying to recover financial loss for a long time.
Loss of Revenue
As previously mentioned, customers tend to move away from companies prone to cyber threats and attacks. However, this isn’t the only way companies lose revenue. They can also lose money to hackers who are hell-bent on extorting their victims.
A type of cyber threat where victim extortion is common is ransomware. It involves encrypting data on the target system and demanding a ransom in exchange for user access to their network. Hackers are also capable of identity theft which may give them access to a business’s bank accounts and steal large sums of money. Loss of revenue is one way cyber threats impact business.
Stolen Intellectual Property
A business’s intangible assets may include its go-to-market strategies, technologies, and product designs. These are, without a doubt, some of a company’s most valuable assets. This information is held in the cloud where it’s vulnerable to cyber threats and consequently cyber-attacks.
Almost 30% of U.S. companies reported having their intangible property stolen by a Chinese business rivalry within the last decade. Malware is a common cyber threat where the hacker takes over the system. As a result, this can lead to a loss in direction, strategy, designs, and even the business itself – hurting the business’ finances.
How Cyber Threats Impact Business Finances – Summary
Many different types of cyber threats impact business, specifically business finances. While some may damage software and disturb business networks, others may steal an identity and bring it to a halt until a hacker’s selfish interests are met.
Consequently, when a business is prone to hackers, it loses the trust of its customers, suppliers, business partners, and sometimes even staff. When this happens, customers migrate to businesses they conceive to be safer. It hurts business finances, not to mention the lawsuits that may come with data breaches.