Cyber crime is one of the fastest growing concerns of businesses around the world. From wire fraud to ransomware to denial of service attacks (DoS), cyber crime is both myriad in its forms and constantly evolving newer and smarter ways to attack computers, networks and data transfers. It is estimated that cyber crime activity costs the global economy around $600 billion per year according to research done by cybersecurity firm McAfee and the Center for Strategic and International Studies.
This trend is only expected to grow as new technologies multiply, as more and more smart devices are introduced into our everyday lives and the sophistication of hackers and cyber crime tools continue to increase. It is therefore imperative that businesses and individuals take web security seriously.
The Effects of Cyber Crime On Businesses
The costs of a data breach or ransomware attack go beyond just the data recovery and cleanup in the aftermath. Besides the direct expenses, there are other, even deeper costs.
Harm to Investor and Shareholder Perception – Damage to the confidence of shareholders and investors in the wake of a breach can fuel a “sell now” atmosphere that can snowball into the permanent impairment of a business. The negative press from a successful attack can sow mistrust amongst investors that their money is not safe. That short term pessimistic thinking can easily become a long term weakness from which a company may never recover.
Damage to Consumer Confidence and Data Loss – The loss of sensitive data is bad enough, but it is even worse if that data includes customer records and information. In the immediate sense, this can bring about fines or lawsuits. Beyond these damages, this sort of red flag severely undermines consumer confidence. Identity theft is a massive concern for consumers and if they feel your business cannot protect their data, they may leave for more secure companies.
Damage to Reputation – Another hidden cost of an inability to stop a cyberattack is the potential loss of reputation. A damaged brand can make it hard to gain new customers due to a perception that their data is not safe with the affected company. A company’s brand identity bleeds into all aspects of business, and a tarnished brand can suffer from losses in growth potential and revenue.
As your closing partner, Two Rivers Title takes cyber security seriously. Whether you are involved in a real estate transaction or looking to protect yourself with cyber liability insurance, contact Two Rivers Title today to learn more about your options.