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Data Breach: Its Smallest to Biggest Consequences

Data Breach

Adopting technology, either equipment or software, for your business can improve the efficiency and productivity of the employees. It lessens loads of tasks to be done while ensuring high-quality outputs. Establishing good communication is among the business aspects that need a technological boost.

As cliché as it is, communication is key for success. No entrepreneurial career will last if there is no connection with customers, which eliminates the chances of reaching a target audience and finding a new market at the same time. Not to mention the benefits mobile instant messaging (IM) applications can bring to the table for businesses.

Who wouldn’t want to integrate IM apps into their operations? These trendsetters in the more technological reliant business sector provide hassle-free and wide-reach communication advantages. Small businesses can even communicate with their employees and customers via WhatsApp or Telegram through chats, voice calls, or video calls. Mobile messaging software also has a built-in feature to ensure that your business complies with SMS archiving regulations.

However, amid the IM apps’ cost-effectiveness and time-saving perks, business owners should be cautious of the risk in using them. A data breach is the biggest cyber security concern that business executives and leaders face at present. It has short and long-term consequences worth knowing and understanding.

To know more about the dangers data breach poses for the business, continue reading this article!

Just the beginning: fines, fees, and frustration 

Small businesses without financial regulation text message archiving are vulnerable targets for criminals who steal highly confidential information to commit fraud. In the wake of a data breach, expect the chargeback process to hurt you financially in various but costly consequences, namely direct fines and fees, forensic investigations, and future security costs.

As a result of a data breach, the Payment Card Industry Security Standards Council will fine and penalize the business, with possible additional fines to come along the way also.

Requesting for forensic investigations is costly but can help prevent future data breaches by determining the causes of the sudden leakage. Data breaches also mean incurring costs for compromised customers. These remediation efforts are not limited to card replacement but also identity theft repair and additional compliance requirements.

Greatest setback:loss of trust and diminished reputation

In a report released by PwC, 85 percent of customers will avoid shopping at businesses with security concerns. The study reveals a universal truth for business owners to remember – protect a customer’s sensitive information at all costs. Often, a good reputation is considered the company’s most prized asset so, if a data breach happens, loss of customer trust will become its biggest long-term consequence. In a 2019 study by Verizon, 69 percent of survey respondents said they would avoid companies with data breach records. At worst, 29 percent stated they would never visit that business again.

Knowledge is power

For businesses, acknowledging the smallest to the biggest consequences of data breaches will guide them in plotting the best and formidable data security measures to protect their clients. In that way, they will earn trust and establish a good reputation on the web.

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