How a Single Security Breach Can Destroy Your Business (and How to Save it)

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Running a business can be overwhelming at times. You need to deal with marketing, employee difficulties, monitoring your cash flow, taxes and numerous other problems. The day-to-day challenges of running a business are often overwhelming on their own. Many business owners can’t worry about unexpected events that may never happen, such as cybersecurity breaches. However, developing a cybersecurity contingency plan is essential.

One Cyberattack Can Be Your Downfall

While the likelihood of a cyberattack may seem small, it is probably much higher than you expect. A growing number of online criminals are targeting small businesses. Also, the consequences for organizations that fell victim to a cyberattack can be devastating.

One study found that 60% of small businesses that fall victim to cyberattacks have to close their doors within six months. There are several reasons that a cyberattack can ruin your business:

  • The direct financial losses could be excessive. The average cost for a small business is $117,000 and over 12 times that for an enterprise business. Cyber criminals often use keyloggers, social engineering strategies and other hacking approaches to infiltrate the online financial accounts of the victims. They can directly pilfer tens or hundreds of thousands of dollars from a single organization.
  • Intellectual property rights could be exposed to the masses. Some hackers release this information maliciously, while others rationalize their theft of intellectual property by stating that they have a desire to share information with the world. Either way, you can compromise your competitive edge after your secrets are unveiled.
  • Being a victim of a cyber security breach can have serious ramifications for your brand image. CPVLab is a marketing analytics company that was targeted by a denial of service attack by one of their previous employees earlier this year. They failed to respond to the security breach appropriately, which took a serious toll on the company’s brand image.

Some organizations may be able to withstand the PR crisis and financial losses incurred after a cyberattack. However, many are going to be forced to shut their doors forever. Companies that operate mainly or solely online will be hit the hardest.

Keeping a Security Breach from Destroying Your Company

You need to take the right measures to keep your company from being destroyed by a cyberattack. Here are some things to keep in mind.

Have a plan to recover lost or destroyed data

Some cyberattacks are orchestrated to destroy data. They typically rely on worms. R-Studio experts point that you may not think that these types of attacks will be as devastating as one that is designed to steal your company’s money. However, the consequences can be just as bad. Rebuilding your organization after losing valuable data can be nearly impossible. You need a dependable data recovery solution in advance.

Educate your employees about social engineering attacks

The stereotypical hacker is a socially inept loner conducting his crimes from his basement. This misconception leaves companies vulnerable to many of the most skilled hackers. They don’t all depend on brute force attacks. They find clever ways to convince their targets and keep providing information needed to conduct their crimes.

It is important to keep up with the latest social engineering tactics hackers use. Inform your employees about them, so they can be on their guard.

Make sure your servers have plenty of bandwidth

Denial of service attacks are becoming more common. You need to make sure that your website and servers have plenty of bandwidth. This will significantly minimize the success of an attack.

Make sure that your malware protection software is constantly updated

It is very difficult to protect your business with outdated know where protection software. You are basically leaving your feet to the mercy of hackers and hoping they don’t target your company at all. Always use up to date applications, such as Malwarebytes or Webroot SecureAnywhere.

Ryan Kh is an experienced blogger, digital content & social marketer. Founder of Catalyst For Business and contributor to search giants like Yahoo Finance, MSN. He is passionate about covering topics like big data, business intelligence, startups & entrepreneurship. Email: ryankh14@icloud.com

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