In our last article, we discussed 7 ways to protect your customer’s data. Failing to do so can be devastating on many fronts – from disrupting operations to damaging your reputation or facing legal and financial consequences. As we approach Valentine’s Day, one of the best ways you can prove your love and loyalty to customers and users is to protect their data from cyberattacks.
Below, we identify the significant risks of failing to proactively address data privacy and security.
Common Cyberattacks Against Business
Cybercrime has evolved into a lucrative business for hackers, and businesses must take proactive measures to provide their customers with adequate protection and prevention. Here are just a few of the most common attacks against Sarasota SMBs.
Phishing:These cyberattacks are typically accomplished with a simple email. The email is sent to a company employee with the goal of deceptively persuading them to provide sensitive or confidential data. When a C-level executive is the target, it is known as “whale-phishing.”
Distributed Denial of Service (DDoS): These cyberattacks involve overwhelming and crashing a data server by flooding the server with incoming internet activity and traffic.
Trojan Horse: These attacks are carried out by malware that masquerades as a legitimate program. The unsuspecting user then inadvertently downloads malicious code that invades the network.
What are the Risks?
Disruption of Business: When a company suffers a data breach, its normal operations can be completely disrupted. For example, a DDoS attack creates and instigates an online flood of traffic that renders the site exceptionally slow or even crashes the system. When customers cannot browse your products, submit an order, or get the answers they need, it can severely impact your business.
Legal Liability: Safeguarding customer data is a legal issue that is essential for businesses to understand. If a company is not in compliance with any relevant privacy regulations, they could find themselves defending themselves in a lawsuit.
Financial Impact: Whether from extended downtime, a loss of trust, or legal consequences, there are many ways that cyberattacks can adversely impact a company’s financial stability.
Reputational damage One of the most significant repercussions of non-compliance with data privacy laws is damage to the organization’s reputation. This reputational damage can linger for weeks, months or even years if not addressed.
Minimizing the Impact: Cyberattacks and Data Breaches
The most effective method of minimizing the impact of a data breach is to avoid it altogether. This may be achieved by implementing protocols and best practices including:
- Collecting only data that is essential to specific business operations
- Utilizing data mapping and lineage techniques to understand how data is stored within the business.
- Establishing data governance controls such as user-based access to sensitive data.
- Routinely assessing and auditing data and checking current data privacy laws against compliance efforts.
However, even with best efforts, cyberattacks may still take place. If a data breach has occurred at your company, you can manage the impact. First and foremost, act quickly to shut down access to affected systems and operations and proactively involve legal counsel. You should also have a plan in place to report the incident to both customers and law enforcement.
Alliance IT Can Help
Customers are the lifeblood of any business, and you need their trust in order to collect sensitive data. It is the responsibility of your organization to keep credit card numbers, bank information, and social security numbers safe from prying eyes. If you’ve never undergone a comprehensive evaluation of your data protection practices, call Alliance IT today. Our team of data security experts can help you take the necessary steps to protect your clients and your business.
