The effects of a cyber attack you may not know exist

Businesses are affected by data breaches everyday. The ones that hit national and international companies are publicized all over the news and social media. Everything from the loss of client’s personal information to the latest hack on Google that left Google Photo users wondering how many strangers had access to their personal photos and videos. But the effect of cyber attacks becomes all too real when your company is the victim of the breach. And while your first thoughts are about the loss of confidential data, the effects of a security breach can be more monumental and devastating than you imagine. Take a look:

Issues with company insurance

Many businesses who suffer a security breach find themselves faced with higher insurance premiums, some with increases up to 200%, while others are denied coverage renewal.

Lost contracts

In the wake of a security breach, businesses lose contracts or find it difficult to negotiate new ones.

Increased customer attrition

After a cyber attack, companies have reported an up to 30% customer attrition rate. Customers often terminate relationships with companies that have experienced a breach and switch to a different source for whatever service or product they have been receiving.

Damage or devaluation of company reputation

A security breach is often deemed as a weakness or defect by customers and the public. This perception can translate into a damaged reputation for your company and your brand.

Loss in sales and profit

Once your company is victim to a data loss, it is not uncommon for sales to decrease which directly affects your bottom line.

Downgrades in company credit

Companies as vast as Target have experienced issues with company credit after an attack. The effect on small and mid-size businesses can be even greater because many of these companies depend on credit for dealing with vendors and product production.

Loss of intellectual property

A data theft or security breach can impact your company for years if it results in loss of intellectual property such as patents, copyrights and trademarks.

Minimize your risk

Anyone doing business today is at risk for a security breach-but you can minimize your risk by taking certain precautions and staying up to date with recommended protocols.

All Points Mobile Shredding can help prevent data breaches by providing you with onsite mobile shredding and destruction. Since 1994, we’ve helped protect businesses across South Florida, from Okeechobee County down to Broward County. Give us a call today or fill out this form to find our more.