Data breaches are costly, without a doubt. They not only affect you financially, but also dents your reputation. All in all, the hard truth is that the effects are long-term. It is for that reason that we take no chances on optimizing security in our cloud faxing solution. Statistics from the National Cyber Security Alliance suggest that 60% of SMEs have encountered cyber attacks close shop within six months after the incident. The reasons may vary but disregarding the costs related to data breaches is suicidal.
In 2018, a study conducted by the Ponemon Institute revealed that the average cost of a data breach in the US is $233 per record. In some sectors, the price was several times higher than that. The statistics do not sound an alarm to many, considering that the figure is a few hundred dollars per record. They seem not to think that an average of 31,465 records was breached, translating to a massive $7 million.
A leaked data breach can devalue an organization’s brand and reputation. The PR strategy and outsourced mitigation measures to salvage the situation would incur extra costs outside the budget. Having an operational crisis management plan in place would be of little significance at that stage.
A recent survey conducted by Vanson Bourne, an independent technology market researcher, paints a clear picture of a tarnished reputation’s adverse effects. Three-quarters of the respondents said they would give a wide berth to companies with a high data breach record. This calls for an increased need to boost the sales and marketing budget to resurrect the lost customer base.
Regulations need an affected company to send a written notification to customers informing them of the data breach. You may have come across an email or letter from a retailer or corporation explaining that a data breach may have occurred and affected your information. At times, the message may be accompanied by a fancy offer giving a year of free credit reporting. It is a deceptive way to win you back because regulations state that all affected customers must get the offer.
After a data breach, investigations examine the level of damage caused affecting a company’s everyday operations. Networks go offline for some time affecting service delivery in a big way. Liabilities such as rent, salaries, and utility bills have to be covered despite the revenue decline. Staff may suffer from decreased productivity, slowing down vital projects, and the general work momentum.
Regardless of what caused the data breach, the whole incident exposes a security framework in the organization. A high-level team has to sit and contemplate the issue. Security and legal teams have to work hard and clean up the mess through a thorough security audit. They must develop a report and recommendations on the steps needed to avert a recurrence in the future.
In cases where a data breach happened due to a staff member’s negligence, cybersecurity training is needed to create awareness and instill skills. The process translates to extra costs, and employees will take a paid leave to attend. Worse still, it is not a one-off affair as the training should be regularly done.
Cloud computing offers many advantages, among them enhanced security, greater scalability, and simplified administration. With eGoldFax, you can rest assured that your fax transmissions meet the topmost standards for safety and regulatory compliance. Visit https://www.egoldfax.com for more about our services.
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