In today’s world, data is the most valuable thing businesses have, which is the reason why it is also important to cybercriminals. Despite organizations’ attempts to protect their and their customers’ privacy, all the events that have occurred over the past year have shown that companies cannot do a good job of protecting it. When a data breach occurs it seriously cripples the organization, hurts its reputation, and incurs huge costs. In this article, we will explain exactly how data breaches affect organizations and how to avoid them.
The Cost of a Data Leak
For any company, a data leak causes huge losses, at least 20% of the company’s value goes down, and it plunges into an internal crisis from which it is unknown whether it will recover. Such costs are due to the amount of hacked data and are usually lower for small or medium-sized businesses, although it is known that small businesses account for about 60% of all attacks and data leaks.
Below we describe the common costs of data leakage:
- Hiring professionals to investigate data breaches and have to detect security breaches that led to these events
- Costs of rapid deployment of security measures
- The company loses productivity because it loses some of the data that was responsible for certain critical systems
- The company spends money to notify special regulators and involved parties about the incident
- Costs in additional customer service
- Covering fines and compensation for victims of data breaches
- Loss of a large part of customers because of damaged trust
- Higher costs associated with cleaning up after a breach
- Deterioration of competitiveness
- Hiring of legal representation for litigation, arbitration, and dispute resolution
Even the approximate cost of some of these redundancies is difficult to quantify. To all of the above costs, new ones can be added as they go along, and so we see the company losing a significant amount of its fortune and credibility.
Protecting sensitive data
First of all, it is worth noting that no one can give you a guarantee of complete protection of your company from data leaks, it can happen to anyone. However, you can take some measures which would be enough to ensure that your company will not fall victim to cybercriminals. The fact is that in most cases, hackers are looking for easy targets and victims, so if they encounter serious cybersecurity systems, they probably don’t want to puzzle over it.
Solutions to protect your system analyze and assess the vulnerability of your system and trap access to repositories of your sensitive data. They can alert your company to strengthen your defenses against the threat of a cyberattack.
Most attacks occur through phishing and audacious attacks on company web applications like password cracking. You need to learn how to effectively use the web application firewall to protect against attack vectors. In fact, you only need to take a few simple steps to secure your system, especially since there are many cybersecurity and information security systems available today that can close the cracks in your security and provide document protection.
A virtual data room from https://virtual-dataroom.it/ is a digital repository that has bank-level or military-level security. Upload absolutely any sensitive data to the VDR system, the space is protected with the best security certificates, advanced data encryption methods, and double authentication as password protection. Data rooms also offer additional security features like backups, remote destruction, watermarks, and detailed permissions.