When a company experiences a cyberattack, the consequences go far beyond a single ransom payment. The financial fallout can be massive, with the average cost of a data breach now reaching over $4.88 million globally.
The True Cost of a Cyberattack
A cyberattack can cost a company millions in several ways:
- Response and investigation - The immediate need to hire experts to contain the attack and assess the damage is expensive.
- Lost business - When systems are down, a company can't operate. For example, a cyberattack on a grocery distributor led to up to $400 million in lost sales because deliveries were halted.
- Fines and lawsuits - Depending on the type of data stolen, companies can face major legal fees and fines for not protecting customer information.
- Customer support - When customer data is exposed, companies often have to pay for credit monitoring services to protect those affected.
Did you know it takes an average of 277 days to identify and contain a data breach? That's almost a year of potential disruption and rising costs.
Damaged Reputation and Lost Trust
Beyond the financial costs, a cyberattack can permanently damage a company's reputation. When a company loses customer trust, it can lose business. The 2017 Equifax breach, which exposed the data of over 143 million Americans, caused the company's market value to drop by 31% in a single week.
The harm to a company's reputation can also lead to:
- Lost customers - Customers will take their business elsewhere if they feel their data isn't safe.
- Negative media - Bad news spreads fast, making it difficult to attract new customers and employees.
- Partnership problems - Companies may become hesitant to work with a partner that has shown security weaknesses.
Operational Chaos
A cyberattack can bring a company to a complete standstill. Essential systems can go offline, employees can't do their jobs, and the entire supply chain can be disrupted. A good example is the NotPetya attack in 2017, which started in one country but quickly spread to cripple major global companies, including the shipping giant Maersk, causing billions in damages.
How to Protect Your Company
Cyber threats are always changing, but you don't have to wait for disaster to strike. Being proactive about cybersecurity is no longer an option—it's a necessity.
To learn how our proactive IT support can protect your organization, give us a call at (270) 282-4926.
Comments