The Effects of Cybercrime on Businesses
Whether you are starting a new business or are already operating an existing one, it is crucial to be aware of the effects of cybercrime on businesses. Not only are these crimes disruptive and damaging, they can cost you time and money. Here are some of the most common types of cybercrime to look out for.
Costs
Despite the rising costs of cybercrime, companies continue to invest in cybersecurity. In fact, the overall predicted cybersecurity spend in 2020 was 23% higher than in the previous year.
The average cost of cybercrime on businesses has increased by almost fourfold over the last two years. In addition to the actual costs of a breach, businesses will have to pay for forensic investigations, lost productivity, and theft of intellectual property.
As computer networks grow, the risk of cybercrime grows, too. More than half of all attacks are against small to medium businesses. They are often targeted because they are perceived as less prepared. In some cases, these attacks are triggered by employee behavior, such as a single employee using a USB drive without logging in to the network.
Damage and destruction of data
Using the right data destruction methods, you’ll keep your data out of the wrong hands. For starters, be sure to make it a point to use a company that will stand behind your data for all your needs. This will allow you to have peace of mind for your company’s cherished data and your business. To that end, we’ve compiled a list of data data destruction companies that you can trust to entrust your most precious data. This short list will help you to get the job done in the most efficient manner possible. The following companies have been carefully vetted and ranked to bring you the most trustworthy and cost effective data protection solutions in the industry.
Loss of productivity
Despite the increasing sophistication of cyberattacks, many companies still lack a comprehensive understanding of the risk associated with them. This makes them vulnerable to social engineering and hacking. It also means that they lack the necessary planning and procedures to address a cyber incident.
The cost of data loss can vary by industry and company size. For example, financial institutions and higher education institutions store sensitive client information, academic research, contract deals, and other personally identifiable information. The theft of this type of data has significant personal and regulatory consequences.
Cybercrime is a global issue, and it affects all types of businesses. It disrupts normal operations, harms important infrastructure, and can even create legal liabilities. It can lead to downtime, team morale decline, and increased operational costs. It can also damage the reputation of a business. It can even cause customers to turn to competitors for better products and services.
Embezzlement
Embezzlement is a crime in which a person steals assets that were legally owned by someone else. These can include money, laptops, company real estate, and even smartphones.
Embezzlement schemes can have serious effects on businesses. While they may be small in size, the results can be devastating. Depending on the type of theft, a business may have to cut costs in other areas to keep the basic operations running.
While embezzlement is usually a criminal offense, a business can also be held civilly responsible. The law allows the company to take action against the individual who committed the theft, including fines or jail time.
Fraud
Whether you’re a business owner, manager or employee, it’s crucial to be aware of the various types of fraud that can affect your company. Cybercrime is the number one threat to most businesses today. In fact, almost half of organizations have experienced some type of economic crime in the past two years.
The global economy is estimated to have suffered a cost of $45 billion in 2014 alone, according to a report released by security software provider McAfee. In addition to the monetary costs of these incidents, businesses are also at risk of higher borrowing costs and reputational damage.
Cyber-enabled attacks are becoming more sophisticated and omnipresent. Often, these attacks target individuals’ private information. In many cases, this information is accessed through phishing emails or spoofed websites. These scams can entice the victim to reveal their password or login details, which can be then used to access online accounts.
Disruption to the normal course of business
Whether the threat is financial, operational, or both, cybercrime is a significant problem for business leaders. They have to understand the nature and consequences of the attacks, so they can make informed decisions about how to protect themselves.
Generally, cyberattacks are attempts to destroy or alter information. They may involve ransomware, malicious software, or other techniques.
While some cybercrime incidents can be minor or not even noticeable, others can be financially devastating. For example, hackers may steal sensitive customer data or employee payrolls. These losses can lead to fines and lawsuits. In addition, companies may be forced to hire cybersecurity experts to help prevent further attacks.
