The Impacts of Cybercrime: Beyond Financial Loss

Cybercrime can end up being an extreme financial mess for businesses of all sizes and industries. From having to pay out ransoms to paying IT teams to patch up networks, a company’s finances can be severely damaged. But cyberattacks can present more damage to a business than just finances. In fact, there are dozens of ways in which businesses can suffer from cybersecurity issues.

Here are just some other ways that cyberattacks, such as ransomware and DDOS attacks, can affect a business.

SEO Rankings

There are a number of issues that will occur in the wake of a cyberattack that can have major consequences for a company’s search engine optimization (SEO). Sites that are hacked, for instance, will be flagged in the search rankings with a warning sign which can deter potential site visitors. Also, after a site is hacked, it can start to get negative reviews online, which will only hurt a company’s rankings and traffic.

Loss of Trust

When a website is attacked through a cybercrime, consumers will undoubtedly look at that company in a different light. A company that suffers  Cybercrime can be looked at as not doing enough to protect its data and its customers’ information. Once customer trust is gone, it’s hard to get it back. What’s more, customers who would traditionally give a business its participation may choose to go with a competitor in the market who offers the same products and services.

Legal Issues

The cost of a cyberattack can get up to the million-dollar range, and that’s just from data and direct financial loss. But what about the legal fallout from a cybercrime? In the world of data protection, there are organizations that now fine businesses more heavily than before. In the European Union, for example, under the General Data Protection Regulation (GDPR), regulators have the power to slap fines of up to €20 million if they suffer a data breach and failed to be in compliance.

Disruption to Work

When a company suffers a cybercrime, it will need to spend time dealing with the issue at hand, and ensuring that nothing has been left susceptible to future attacks. In order to do so, it is always necessary to have some downtime. It can also take time away for a company’s IT staff from critical work that needs to be done, which can turn into a major disruption to the workflow.

The cost of a cybercrime can end up causing dire consequences for a company. For those companies that suffer a cybercrime, they need to understand the various ways in which they can suffer and the potential long-term damage that can be done.

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