Today, there are a lot more risks that business owners now have to worry about. Gone are the days when your biggest problems were figuring out how to best please your customers and fend off competitors. Now, there are much more dangerous threats lurking where you can’t even see them that could utterly destroy your business. This of course is the risk of being targeted by hackers and cyber criminals.
According to statistics, a cyber attack costs a business $1.3 million on average. Being hacked is life threatening for small businesses. You need to invest a decent amount in cyber security and other preventive measures if you want to survive. However, despite the risks, many business owners do not take the necessary steps to protect their companies. With that in mind, below are few reasons why a hack could kill your company.
Cyber Attacks Are Now the Number One Threat to Business Survival
If you are not prepared, a cyber attack could be fatal to your company. This is a proven fact. The National Cyber Security Alliance has determined that up to 60 percent of small and medium sized companies go out of business after a significant hack.
Small businesses are targeted by hackers the most. It’s not just big corporations that are targeted. In fact, the threat posed to small businesses is far greater. Much larger corporations have the assets and revenue to weather a decent scale cyber attack. They can take the hit and survive. Smaller to medium sized businesses do not. For them, such a blow often leads to their ultimate downfall.
It’s not a matter of if you’ll be targeted either. It’s a matter of when. The Insurance Journal reported that about half of companies have been hacked. There’s a good likelihood you could be hit more than once a year.
You Could Be Hit with a Class Action Lawsuit
However, you also need to be aware that just because a hack has ended does not mean you’ve seen the worst of it. That often comes later. The goal of a large security breach is often to steal data regarding customers. This includes their names, addresses, phone numbers and especially credit card information.
This information is then used to defraud them of thousands of dollars. Cumulatively, it could be millions of dollars. Identity thieves have stolen $107 billion from Americans over a six year period.
If you would assume the criminals would be held responsible for this theft, you should think again. The criminals, themselves, often reside overseas and are rarely caught. It’s the companies that are often forced to write the check to make up for this theft. That of course is usually done through the use of class action lawsuits. If you have been proven to be negligent or lax in any way with your security, you’re at risk of being sued over any hack that occurs. It is probably better to obtain managed security services.
You Could Lose Your Data and Your Competitive Edge
Today, data is more important than ever for business success. This is in part due to new technology. Now, massive amounts of data regarding customers, sales, products, factory processes and more can be stored for the long term. This data can then be accessed by big data analytics software to help improve business strategy. You’ll know what to sell at what times to make the most profit.
However, this advantage only exists if you have access to that data. A hack, unfortunately, could wipe out all that data in an instant. You need to prepare by making remote backups of that data. If you don’t, you could lose a lot of your competitiveness along with that information.
These days, the biggest threats facing businesses aren’t things like the economy and stiff competition. Instead, hackers and cybercriminals are the biggest dangers faced by companies. Make sure you make the proper investment into cyber security. If you don’t, it could mean the end of your business.