A March 2021 report found that 31 billion data records were compromised in 2020, a number that dwarfs the total of the past 15 years combined. As tactics from phishing scams to ransomware attacks become more sophisticated and effective, we are on the verge of a “data breach crisis,” according to the study.
As a result, cybersecurity is increasingly top-of-mind for companies and consumers, and the consequences are becoming more severe than ever before. For businesses, the immediate cost of a data breach is significant, while the long-term but less quantifiable impacts can be even more telling. For example, it’s estimated that 75 percent of consumers will stop engaging with a brand online after a data breach. One-in-four Americans won’t do business with a company that has previously been compromised.
That’s why 60 percent of small businesses will permanently close within six months of a cyber attack. While major corporations may have the financial resource to remain operational, the reputational damage associated with a breach can have long-lasting effects that undermine growth and profitability.
For consumers, exposed data is linked to financial fraud, identity theft, and other malicious activity. One survey found that 32 percent of respondents said they cared about a company’s data privacy reputation, taking action by switching companies or providers due to data management policies.
In other words, a data breach isn’t just a technical problem for cybersecurity personnel. It’s a PR and bottom-line disaster, and organizations must do whatever is necessary to avoid an incident.
What’s more, the ongoing fallout from the SolarWinds breach is creating momentum for more strict reporting requirements for companies that endure a data breach. According to The Wall Street Journal, several senators are modifying existing legislation or creating new reporting standards, operating under the consensus position that “the U.S. must require businesses to report cyberattacks.”
At the same time, there is growing interest in constructing a national data privacy regulation that could similarly impact businesses that experience a cyberattack.
These shifting sentiments have particular importance for MSPs. Many companies are turning to MSPs to enhance their cybersecurity capacity in a challenging cyber environment, and an MSP breach can have cascading consequences for these companies. Simply put, their reputation and operational viability are on the line.
In 2021, cybersecurity is a bottom-line priority impacting revenue, customer retention, and regulatory compliance. Every organization needs to put its best foot forward, ensuring that its defensive posture is ready to meet the moment.
The stakes are high, and we will always have our customers’ backs. Improve your IT and bottom line with our award-winning endpoint protection that uses deep learning and AI to prevent malicious activity while cutting overhead costs. Contact sales@blokworx.com to secure your (and your clients’) networks, so you can focus on the rest of your business.
