Many companies, both private and public, have experienced massive losses due to data breaches. We have also heard of websites that have had to shut down after important user information was illegally accessed and made public. Behind the scenes, these companies are made to pay huge amounts of money to compensate everyone affected in the data breach.
I have compiled some valid reasons as to why it is best to make serious plans to prevent data breaches.
Protect the Reputation of Your Brand
Think about it, you wouldn’t trust a brand that has had numerous issues with data loss and other types of online security problems. These brands lose their reputation quickly because we the consumers care about our privacy. Many brands have spent a lot of money over the years building an excellent reputation, so it is only right that they invest a little more in preventing a data breach to protect this hard fought reputation.
The solution is to have competent tools installed in their systems that can detect loopholes which hackers leverage to gain unauthorized access to the system.
Potential Bankruptcy
A severe data breach can cause the company to suffer huge losses that can ultimately result in bankruptcy. This is a situation many brands spend years planning against. It is a smart move to employ the best hands in the industry to work in your company and ensure that while your business grows, any chances of bringing down your entrepreneurial empire are quashed.
Business Collapse
The huge debts and financial losses can cripple the business at a level that it cannot be salvaged. Consequently, the data breach leads to a total business collapse, and all the employees will have to be laid off while assets sold to pay off debts.
Legal Suits
The clients affected by the data breach and other negative consequences that will follow will seek redress in court. The subsequent legal cases will make things worse for the company in addition to the rising legal fees, if the court case drags for many months.
In such cases, we know about class action lawsuits. This is when all the victims come together to file a joint lawsuit against the company. The grievance of clients who file legal suits is that the company is supposed to do everything possible to avoid a data breach. After all, someone has to be held liable and pay for the financial losses.
Regulation Fines and Penalties
Companies that deal with sensitive data, especially those businesses that require clients to provide confidential information, are expected to meet high standards for online safety. In many countries, a company that suffers data breach is held liable and fined by the regulatory agencies in that country for the breach. The fines for such lapses are usually high. Companies involved in these issues can also lose their licence to operate.
The unfortunate issues described above and much more can happen when there is a data breach. With the current level of innovation and advanced technology available to these companies, it is expected that brands and individuals use the right tools to prevent a data breach from taking place.
One tool that we would recommend to prevent data breaches is DriveStrike. It is an online security tool that can protect data stored on mobile devices and computers from unauthorised access. What’s more, in the event of a data breach, DriveStrike has a remote wipe feature that can erase all the data on any system before hackers access it. This is why DriveStrike should be part of every business’s armory.
