Cyberattacks cost more than just the price of recovering lost data.
This may seem obvious, but multiple sources recently have argued that companies ignore the secondary costs associated with data breaches.
A 2017 Kaspersky Lab report indicated that a cyberattack on a small or medium-sized business will cost that company on average $117,000. This can be devastating to new and not-yet profitable start ups. And the cost for a Fortune 500 company is exponentially more. One estimate puts it at $150 million.
Why so much? For starters, companies usually harden their cybersecurity efforts and add layers of protection to prevent any future breaches. This should have been done way before an attack ever took place.
The affected company can also face regulatory penalties, be fined, and be sued by customers whose data was stolen by cybercriminals.
Others will see their business hurt financially. Stock prices almost always decrease in the days and weeks following a cyberattack. The reputation and value of the company diminish with every negative media article published.
Yahoo, the victim of three cyberattacks where two billion accounts were compromised, is the perfect example. The corporation’s valuation dropped substantially after the latest attack was announced, leading to $350 million being shaved off its purchase price when Verizon took it over. Now, they owe former investors $35 million for failing to report the attacks on time.
What’s more, Deloitte says that the cost of raising debt actually increases after data breaches:
“Organizations appear to be perceived as higher-risk borrowers during the months following a cyber incident. Deloitte analyzed the credit rating of nine public companies (from the same industry and comparable in size) and observed an average Standard & Poor’s credit rating of A, and assessed these companies against companies that had recently suffered a cyber incident. It was observed that, in the short term, the credit-rating agencies typically downgrade by one level companies that have experienced a cyber incident.”
Every company, whether big or small, has a digital footprint today. However, this also creates a bigger pool of potential targets for experienced cybercriminals.
Evizone offers proprietary software that will protect your data through high-end encryption. Don’t wait for your business to be the next cyberattack victim before taking the necessary steps to protect your business from intruders. Waiting could cost you more than you ever imagined.
About Evizone Ltd.
Evizone Ltd. is a revolutionary secure communications, encryption and compliance software and service provider based in Montreal, Quebec, Canada. Evizone offers innovative enterprise solutions in secure messaging (next generation beyond encrypted e mail) and encryption, encryption at rest, regulatory compliance, compliance archiving, WORM compliance, 17a-4 compliance, document life cycle management and communications governance and risk management. Evizone’s services protect organizations through best in class security, encryption, recipient controls, document life cycle management, discovery management, compliance management, compliance archiving, tamper proof WORM and 17a-4 compliance archiving and complete audit records against the enormous damage caused by communications breaches. Evizone’s patented technologies offer a level of security impossible to obtain with conventional or encrypted email and fast, powerful, user friendly compliance archiving. Evizone’s services are immediately available on multiple platforms and provide the strongest commercially available communications security and compliance archiving. You can follow Evizone on Facebook, Twitter, and LinkedIn.