Which will have a bigger impact on your company post-breach, the General Data Protection Regulation (GDPR) fine, or the drop-in company stock value?
The financial impact of a data breach extends far beyond any GDPR fine.
Most prudent companies are very aware of the impending GDPR legislation and financial penalties, but as Equifax has seen over the past week there are much wider financial and reputational implications for the company.
GDPR may impose a large one-off fine for a data breach but the lingering effects to your brand reputation and bottom line will inevitably take much longer to rectify.
According to the 2017’s Cost of a Data Breach study by Ponemon a breach is estimated to cost the average company $3.62million.
Last week Equifax announced they were the latest in the long line of organisations to have their customer’s details hacked, and whilst it is too early to quantify the complete extent of the damage, we are starting to see significant drops in company share price as soon as a breach is made public.
Data breaches are happening every day, and according to the 2017’s Cost of a Data Breach study by Ponemon a breach is estimated to cost the average company $3.62million. Looking at your balance sheet, what would your bottom line look like if you factored in the cost of a data breach per year, let alone the one-per-month expected by many larger companies?
Looking at organisations historically that have reported a data breach they have:
- Lost revenue
- Watched their share price decrease
- Suffered reputational issues
- Been subjected to ongoing litigation and class action lawsuits
All organisations are vulnerable and are being targeted by hackers – that’s a fact. And from the number of breaches being reported, hackers are successfully compromising networks on a daily basis. This suggests that no matter how hard you “batten down the hatches” internally, data breaches are extremely difficult to prevent completely. A lost laptop, an accidental click on a phishing email or website, or opening an email attachment could all have an unpredictable — and possibly catastrophic — outcome for any company through no fault of their own.
Data breaches cannot be entirely prevented, and – no matter how good your internal security is – you cannot stop human error. What you can do is take steps to ensure you are the first to know when your data appears in the public domain; more importantly the Dark Web.
If you’re going to have a data breach wouldn’t you like to be the first to know?
Unfortunately, the risk of a data breach is continually increasing, as the hackers and cyber criminals get access to ever more advanced technology – so how you manage those breaches is becoming crucial. We hope you never get a breach, however, if you do we would like you to be the first to know — before the media — so that you can manage it, and minimise your losses.
BreachAlert monitors the Dark Web looking for your data and alerts you in real-time.
This can be done through proactively monitoring the Dark Web for your data using our software, BreachAlert, that has specifically designed for data breach detection. BreachAlert keeps watch outside the firewall, letting you know instantly when your company’s sensitive information is posted, leaked or marketed on the Dark Web.
If you would like to check whether your information is posted on the Dark Web, get in touch with us today for a free demo.