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Businesses in Central Illinois understand the risks when it comes to cybercrime. Data breaches have grown and evolved and are now a major global problem. You’ve probably heard about the frequency of attacks, phishing, malware and viruses. These have caused problems for companies of all types and sizes.
Numerous lawsuits have been filed against organizations like Equifax and healthcare providers in Illinois. In general, the public believes that their data will be protected and when it’s not, they’re taking these businesses to court.
If you think that an IT security breach won’t cost that much, you’re mistaken. The cost to recover from a data breach is staggering and in most cases. For some, it leads to the closure of their business.
According to the 2018 Cost of a Data Breach Study by Ponemon, the average cost for each lost or stolen record containing sensitive and confidential information increased by 4.8 percent year over year to $148.
And the study reports the global average cost of a data breach was up 6.4 percent over the previous year to $3.86 million.
The report goes on to state:
U.S. companies experienced the highest average cost ($7.9 million) followed by Middle Eastern firms ($5.3 million).
Serious data breaches at financial service organizations like Experian and JP Morgan Chase have rattled the public’s trust. And legal practices, healthcare organizations and other businesses in Central Illinois haven’t been exempted from these attacks.
According to the Ponemon study, in 2018, more organizations worldwide lost customers as a result of their data breaches. This is because their customers lost trust in the company’s ability to protect their confidential data. The study goes on to say:
“The loss of customer trust has serious financial consequences. Organizations that lost less than one percent of their customers due to a data breach resulted in an average total cost of $2.8 million. If four percent or more was lost, the average total cost was $6 million, a difference of $3.2 million.”
In the last few years, data breaches have become so prevalent that it’s almost commonplace to hear that a business has been breached.
In the healthcare industry, it’s estimated that a data breach in America costs more than 2 1/2 times the global average. At $380 per record, healthcare data breaches threaten us all in more ways than we know. The same is true in the legal industry.
In America, whatever you say to your doctor, lawyer or financial advisor is still protected under the law. But what if those confidential documents end up being placed online by cyber thieves?
Information like this can ruin someone’s life; and it can be painfully embarrassing and costly to the business that allowed the breach to occur.
People need to trust you. If you hear that a law firm, healthcare provider or financial services company has recently experienced a cyber breach, how likely are you to continue doing business with them?
American consumers often “vote with their feet” and often stop doing business with a company that’s suffered a breach, Ponemon told NBC News.
“A lot of people do care about the privacy of their information, and they want organizations to be more proactive in managing that information, so this loss of trust does translate into a much higher cost.”
Learning that all of your personal information is in the hands of thieves causes a significant change in the behavior of consumers. A study by General Global Assistance found that consumers who learned of a data breach at their favorite retail store cut back on purchases from that retailer. With over 1,500 data breaches taking place in 2017, consumers responded in this way:
Due to the growing number of cyber thefts, consumers are taking their favorite stores, law firms, hospitals, banks and others to court. They believe these entities were negligent and didn’t provide strong enough security measures to prevent the breach.
In some cases, they are right. These lawsuits prove that Americans are tired of waking up and finding that their personal information was stolen again by cyber thieves. They’re ready to take action and sue.
Cybercriminals are always searching for any vulnerability they can take advantage of. New types of malware, worms, viruses, and ransomware are developed each year. This has caused regulatory and compliance requirements to be changed and upgraded to meet these threats.
The requirement to maintain and secure your network and client information in your databases will include large financial penalties for those who don’t follow these guidelines. For organizations like law firms, financial institutions, and healthcare providers, the government, regulations will be even tougher.
Cyber breaches are successful because hackers prey on human weaknesses. Most commonly, hackers lure an unsuspecting victim into giving access over to the cyber thief believing him to be a legitimate person or company. Hackers then sell the information they obtain on the Dark Web.
Moving into the future, most experts believe the financial impact of data breaches across the corporate world will increase significantly. It’s not a matter of whether your business will be a victim of cybercrime; it’s a matter of when this will happen.
When it comes to cyber security, you must stay one step ahead of the criminals. You must understand the importance of protecting your clients and data from hackers. And, you should always be vigilant.
You need an IT service company in Central Illinois that will conduct a full IT security review for your business that outlines the issues you need to address with several different solutions:
You must be ready for the battle against cybercrime to avoid financial risk, and possibly the closure of your business.