How Cybersecurity Affects Business Reputation

How Cybersecurity Breaches Affects Business Reputation 

A  cybersecurity  breach refers to unauthorized access to an entity's information system. It is not always malicious. Indeed, an employee may accidentally stumble upon sensitive information due to a software flaw. However, malicious intentions predominate in this type of incident. A  cybersecurity  breach is often confused with a data breach. A breach refers to any kind of unauthorized access to data, even if it does not necessarily result in theft. A breach, on the other hand, refers to the theft of data by hackers by exploiting a security flaw. A  cybersecurity  breach comes from many sources, such as the use of outdated software, poor password hygiene, etc. 

In this article, Zcoderz will explain how cybersecurity breaches affect a company's reputation. Read on to learn all about it. 

What Exactly Is a Cybersecurity Breach? 

A  cybersecurity breach is defined as unauthorized access to a device, server, or program. A breach typically results from a breach of data security. This often involves data copying and theft. 

Most cybersecurity breaches don't stem from a cyberattack. A data breach occurs when sensitive information that should remain secret suddenly becomes publicly accessible. However, the theft hasn't yet been established. Consider the example of an employee who has access to the salaries of all employees in the organization. Although they don't have malicious intent, they may reveal this information to their colleagues. 

Small businesses are the most vulnerable to cybersecurity breaches, according to a survey conducted by the Identity Theft Resource Center. For cybercriminals, these smaller businesses often represent a gateway to their larger business partners. 

A report from the World Economic Forum reveals that 88% of business leaders consider SMEs/VSEs to be the weak link in their supply chain. The figures support this finding, with 40% of companies surveyed reporting that a cyberattack has been carried out from their supply chain. 

What are the consequences of cybersecurity breaches? 

The consequences of a  cybersecurity  breach are fatal for an organization. The extent of the consequences depends on the volume and type of data accessed by the hackers. It also depends on the criminals' intentions. 

A  cybersecurity  breach often results in the theft of sensitive data , which is then exposed online. However, this data is usually customer information. Hackers can also remain stealthy and use this data to commit financial fraud and identity theft. 

A  cybersecurity  breach always results in financial losses, especially in the case of ransomware . Beyond paying the ransom, the company's business is paralyzed for days. Investigation expenses are also a consideration. Furthermore, it must communicate about a possible leak, not to mention compensating affected customers. 

In addition to being the victim of a security incident, a company also risks prosecution by the relevant organizations due to the compromise of customer data. It may be subject to regulatory scrutiny, fines, and more. 

A cybersecurity breach can paralyze a company's operations for days, resulting in lost productivity and reduced revenue. 

Users who are aware of cybersecurity  breaches are more distrustful of a brand .The brand also loses the trust of its partners. Damage to reputation has long-term financial consequences. 

How do cybersecurity breaches manifest itself? 

The 2013 cyberattack against Yahoo is considered unprecedented in the history of cybersecurity. Hackers used phishing to trap victims. All it took was one person clicking on a corrupted email for the malware to spread. 

It represents the main threat facing businesses today. This method is the most widespread and affects both large and small businesses. It involves sending a message via email or SMS to the target. On the surface, the message appears legitimate and encourages the recipient to click a link redirecting to a fake login page or website. 

These messages are designed to extort sensitive information that then allows access to the company's IT system. Phishing is said to be responsible for $12 billion in losses for organizations . Nine out of ten  cybersecurity  breaches are caused by this method. 

Ransomware is another common form of attack, affecting thousands of businesses worldwide. It involves using encryption to make access to a company's data inaccessible. The company is forced to pay a ransom to obtain the decryption key. 

With larger companies better equipped to withstand attacks, small businesses have become prime targets for ransomware attacks. Nearly three-quarters of attacks involve this type of organization . 

Cybercriminals know that SMEs and VSEs often lack the means to create a backup of their data. Yet, they need to get back up and running quickly.  

The term "insider" refers to all employees and other individuals (consultants, contractors, suppliers, etc.) with access to an organization's infrastructure. This may include permission to move within a site, the use of login credentials, etc. 

This privileged access carries risks. Each access authorization (logins and passwords) represents a point of vulnerability. According to an IBM report, a data breach by a malicious insider costs $4.9 million on average in 2023. Another study reveals that an insider threat poses a greater risk of data exposure than an external threat. 

It is important to differentiate between the different types of insider threats: 

Some examples of data breaches following a breach 

Although hundreds of companies suffer  cybersecurity  breaches each year, some incidents remain discreet while others attract media attention. This is because these incidents involve organizations that are believed to be robust. 

The password manager suffered a  cybersecurity  breach in 2022. Hackers managed to break into a company engineer's computer and install malware, a keylogger. By obtaining the employee's master password, they were able to access the customer vault. 

In 2021, more than 530 million users had their personal data exposed on a hacking forum. The information came from a breach dating back to 2019. The data included full names, phone numbers, email addresses, and more. 

The service provider reported the theft of data from nearly three billion accounts in 2013. The flaw allowed hackers to obtain sensitive information such as phone numbers, dates of birth, email addresses, and more. 

To Wrap Things Up 

Companies must remain agile in addressing new emerging threats and adapting their security strategies accordingly. The adoption of emerging technologies, such as artificial intelligence and machine learning , could offer new ways to prevent, detect and respond to threats, although their introduction must be well integrated with business objectives in order to avoid misalignments. 

Only through strategic and conscious management of cyber security can companies thrive in an increasingly complex digital environment. 

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