5 Major Effects of a Cyber-Attack

Cyber-attacks have been on a constant rise in the UK since the start of the pandemic. They are now more likely to happen to you, than in-person crimes. A recent study found that 88% of UK companies have suffered a breach in the last 12 months; it also found that 43% of SMEs have no type of cyber security or protection plan in place.

Therefore, we want to show you why it is vital to consider cyber security for your business. By showing you the 5 major effects of a cyber-attack.

1. Loss of Money

Losing money because of a cyber-attack can be a devastating consequence; due to the need for it to sustain your business. There is a range of ways your business can lose money which include:

Your business is expected to adequately maintain its security to prevent a cyber-attack. Therefore if this happens, it can mean you will have to pay legal fees and penalties for not complying with GDPR.
Finally, if your business offers stocks, then the value of this will depreciate immediately. Many people will sell their shares meaning your business will be running very low on money.
Depending on the attack you could have to pay a ransom fee to the attacker; they will usually charge a high amount in order for your data to be returned back to you.
Similarly, depending on the attack, bank credentials could be stolen which means your business’s savings could disappear. Depending on the size of your business, this could send your business into closure.
Finally, if your business offers stocks, then the value of this will depreciate immediately. Many people will sell their shares meaning your business will be running very low on money.

2. Damaged Reputation

Once the news spreads around regarding your business becoming a victim of a cyber-attack, people will feel you are no longer to be trusted. This can also have a range of impacts including:

Current customers can also be put off from continuing their business with you due to the cyber breach; meaning you will lose customers and money.
Potential investors may no longer want to do business with you due to your business being seen as one which did not take security seriously.
Finally, if your business offers stocks, then the value of this will depreciate immediately. Many people will sell their shares meaning your business will be running very low on money.
Retaining employees and hiring potential new employees could be an issue as they may longer find working for your business appealing; current employees could feel a lot of stress and concern due to a cyber attack.

3. Workload Disruptions

A data breach means you could lose a lot of valuable information which is needed to conduct your daily work. This means your businesses productivity will be dramatically improvised for the following reasons:

Systems can be accessed and compromised, if there is no backup in place, it can take a long time to recover from the attack; many businesses will not recover from this.
Lower work morale and productivity will be a serious impact of a cyber-attack due to how long it can take to recover from this and the fear of how the information was stolen can be used against them.
Finally, if your business offers stocks, then the value of this will depreciate immediately. Many people will sell their shares meaning your business will be running very low on money.
The recovery rate is very slow which means that it can take days or even weeks depending on how severe the cyber-attack was.
The workflow disruption also means that your business’s revenue will be severely damaged as well due to not being able to complete projects in time.

4. Loss of Data

A cyber-attack can potentially destroy your systems and wipe all data which leads to a very long recovery time; impacting all aspects of your business. This can impact the following aspects:

If there is no backup in place for all your business’s data, then it could mean that the recovery time will take too long in order for your business to function; customers may not be willing to help you recover through this and could look elsewhere for support
Depending on the type of business, intellectual property could be stolen which means your business is losing out on future projects; this will impact your revenue and your work routine going forward.
The amount of data you lose has the potential to make or break your business.

5. Legal Action

If a cyber-attack takes place, then it is down to your business to legally prove that they had all the measures in place to prevent this from happening; a cyber-attack can mean the following things:

It can be time-consuming to get all the documents together to prove your business does take cyber security seriously.
Your business will be expected to pay a fine because of the seriousness of the crime and the belief that you have been negligent regarding this aspect of security.
You will be expected to compensate customers who have had their data breached.
The amount you must pay for legal fees can be extensive and this along with how long it will take your business to recover could mean that you have no choice but to close your business.

With all of this in mind, it is wise to invest in a strong cyber security plan to prevent a cyber-attack from happening to your business. You can outsource your IT with us, and our team of experts will monitor your software to be on the lookout for any suspicious activity; further contributing to the protection of your business.