Here are some ways that malicious applications can affect your business.
Disruption of Your Business Operations
Malicious software infections can halt the operation of essential business processes. The opportunity cost of this abrupt cease in operation can be anywhere from a few hundred to thousands of dollars.
As cybercriminals gain a foothold in your company’s network, they can hijack the system and prevent you from serving customers. They can also modify crucial data that can bring havoc to your system. Hackers can also acquire data about your proprietary processes and sell them off. Worse yet, they can steal research and development data and erase it from your system, making it irrecoverable.
Loss of Client Confidence
From contact information and purchase history to credit card and bank details, all businesses have their clients’ information on their computer system. All of these pieces of information are compromised during an attack.
Hackers can use your customers’ stolen information to steal from them, subject them to attacks or commit crimes using their name. When investigations show that your system was responsible for the leak, clients will lose trust in you. This will result in cancelled contracts, huge financial losses and potential legal repercussions.
Irreversible Damage to Your Reputation
Since day one of establishing your business, you have worked hard to build your company’s reputation. You made it a point to deliver premium products and top-notch services to your clients to make them happy. But all of your hard work will crumble once your network is hacked.
Your failure to safeguard your customers’ data will reflect badly on you. Not only will you lose your existing clients, but you can expect to not get their return business either. Furthermore, this incident may scare away potential customers in fear of having their data stolen and compromised as well.
Legal Action Against Your Company
When you collect data from your customers, you are mandated to inform clients that their information will be stored and that these pieces of information be protected. A data breach compromises that and puts you into legal hot water.
You are correct to think that cyber litigation is mostly geared towards the prosecution of cybercriminals. However, according to Australian laws, clients can sue you in violation of the Privacy Act 1988 or the Australian Consumer Law. Additionally, they can sue you for breach of contract and negligence. Furthermore, if the breach is severe or you have been repeatedly compromised, you may face penalties and reprimand from the government.
The financial devastation that an attack can cause is not just from the halting of operations. It will come from the loss of clients, loss of prospective clients, data recovery efforts and succeeding system fortification measures.
Aside from the internal financial damages, you would have to further shell out money to cover client notifications, investigation costs, settlement or damage fees, legal fees and regulatory fees. According to a recent report, a company will spend around USD 3.86 million to recover from a data breach.
Malware attacks are vicious. They can stop your business operations, make you lose clients, drive away potential clients and make you lose millions in the process. The importance of cybersecurity in this day and age cannot be overstated because it only takes one malicious software to bring a company to its knees.
FraudWatch is a digital brand protection company in Australia that can expertly safeguard you from malware and brand abuse. Our team of experienced cyber experts can detect and eliminate digital threats and keep your data and information intact. Team up with us today!