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How Getting Hacked Can Affect Your Business

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Covid-19 has not only jeopardized the health of people around the globe but has also increased the frequency of certain crimes. For instance, the past one and half years have witnessed a significant rise in hacking attempts. According to experts, this has happened due to the growing need for money triggered by the loss of income during the pandemic.

The increase in the rate of hacking attempts has forced businesses to take additional steps to enhance their cybersecurity. As a result, more and more businesses have started implementing robust security measures such as password management systems, 2-factor authentication, network encryption with a VPN, etc.

Using a password management system will allow you to use much stronger passwords and share passwords with your colleagues more securely. Two-factor authentication or 2FA will add an extra layer of security to your computers, accounts, and other resources. This means hackers will need to break a couple of barriers to impersonate you. A VPN or Virtual Private Network, on the other hand, will protect you against hacking attacks by preventing interception or eavesdropping of your connection.

Taking necessary steps to keep hackers at bay is crucial as such events can affect your business badly. The section below talks about the common problems your business may face due to hacking attacks.

Data Theft and Misuse

Hackers break into computers and accounts to gain access to sensitive business information. They use advanced technologies to decrypt the stolen data and eventually use it for financial gains or to carry out illegal activities. Examples of data hackers tend to steal more often include payment details, login data, accounting records, health records, etc. Additionally, they also collect information about projects, products, services, and/or partners of their target businesses.

Modern-day hackers can gain access to Internet browsers of customers and steal payment information directly from those browsers. This happens when buyers visit a business website and enter their payment details to purchase a product or service offered by the company. These unscrupulous people use the payment information to make online purchases, withdraw cash illegally, transfer money to their bank account, etc.

It’s also common for hackers to sell the private data of Internet users to third-party vendors, who use the data for promotional purposes.

Loss of Clients and Reputation

Other than causing loss of privacy and financial loss to your customers, a hacking attack can also damage the reputation of your business. This, in turn, might lead to the loss of customers as well as business partners. The example below will help you understand how a hacking attack can spoil your company’s reputation and trigger a downfall.

The year 2010 saw Banán s.r.o, a renowned Czech hosting firm, face a major hacking attack. Initially, experts thought that the incident only led to significant data loss. However, as time went by, it became evident that Banán s.r.o has lost the reputation it used to enjoy until it became a victim of cybercriminals.

Soon after the attack, the hackers announced that they have successfully attacked several websites and servers of Banán s.r.o. After a few weeks of this incident, most of Banán’s customers received an email from the hackers stating that they should no longer rely on the company as its servers cannot offer secure hosting.

For a large number of customers, the email was enough proof of the fact that they are not working with a reliable hosting firm. So, they decided to use the more secured hosting service provider. If you don’t want something similar to happen to your business, adopt the proper security measures as soon as possible to keep your and your customers’ data protected from hackers.

High Costs of Crisis Management PR

According to a recently conducted survey, a company experiencing loss of sensitive data loses around 29% of its existing customers almost instantly. The number is alarmingly significant, and as a result, it becomes crucial for businesses facing security issues to hold immediate communications with all customers.

A dedicated PR team best does this job. Only experienced PR managers can explain why the attack was unavoidable and what steps the company has taken to ensure that no such events will occur in the future. The PR team must also inform the customers that the company has taken the necessary steps to prevent misuse of the stolen data. To be more precise, the PR team must hold conversations with customers to regain their confidence.

While crisis communication is often beneficial in saving the company’s reputation, but it requires a significant financial investment. Top PR agencies charge hefty sums for helping companies regain customer trust following hacking attacks. If you want to avoid such expenses, make necessary investments for securing your business operations online.

Conclusion

The above discussion must have helped you to comprehend the importance of preventing hacking attacks. Therefore, do your research carefully and implement suitable security measures for protecting the sensitive data of your business and customers online.