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If the Data Breach Doesn’t Kill Your Business, the Fine Might

When you hear about a data breach in the news, it’s usually related to a major company or social media network that has been targeted. The erroneous conclusion would be that the hackers only focus on exploiting security flaws in large organizations, but the opposite is true.

The reality is that cybercrime is deadly to small businesses, with 60% closing operations within six months of an attack. The reason is these organizations often have limited budgets for IT security, which puts them at a disadvantage compared to larger entities with a million dollar budget (or more).

A significant data breach can ruin a company’s reputation and even drive it to bankruptcy. Stricter government regulations (GDPR we’re talking about you.) also dictate how electronic information must be stored and secured. Considering all this, the role of IT security has become more important than ever.

Juggling Priorities

Most small- and medium-size businesses do not have the luxury of maintaining a dedicated IT security team with dozens of experts and analysts. In fact, many organizations have chosen to outsource their technology support to external vendors because it’s cheaper.

But no matter the humble size of the budget, cybersecurity can’t be ignored. If a hacker is able to infiltrate your local network or front-end websites, they may be able to steal data and either sell it on the dark web or expose the vulnerability in the media. Either outcome is bad for business.

When a company is found to have security gaps in their software or hardware, the immediate effect is a loss in trust among users and customers. It should surprise no one if individuals decide to take their business elsewhere for fear you can’t manage their data securely.

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