Businesses are storing more customer information online. It also means they store sensitive information like credit card numbers, identification card numbers, and bank account information. Unfortunately, this makes it easier for hackers to steal that data and use it against you.
Cybercriminals aren’t just targeting individual companies anymore. They’re looking to take down entire industries, too. For example, the WannaCry ransomware attack hit hundreds of thousands of computers across 150 countries, causing $4 billion in financial losses.
Protect your company from cyber-attacks if you want to keep your business running smoothly.
Why is Cybercrime Increasing Among Organizations?
To understand why cybercrime is rising, we first need to look at how technology has changed in recent years.
When people think of cybersecurity, they usually imagine computer systems protected by firewalls, antivirus software, and other tools. While these things help, they’re not enough on their own.
Today, most businesses rely on cloud-based applications that provide them with an easy way to share documents, access databases, and store files online. These apps often have weak points, though; even if you take every possible precaution to secure them, there’s always a chance that someone will find a way into your system.
The growth of cybercrime stems mainly from the increased exposure of sensitive personal information to the Internet. Consumer’s identities are increasingly stored online, making them vulnerable to hackers who steal that information.
Companies store large amounts of customer data in databases that reside in the cloud, where anyone with access to the network can see and download it. Hackers exploit weaknesses in those networks to gain access to customer records. And once they’ve stolen those records, they sell them to criminals who use them to commit crimes against consumers.
As technology advances, so do the tools used to carry out those attacks. A decade ago, hackers relied primarily on software vulnerabilities to breach computer networks. Today, however, cybercriminals are turning to malware explicitly designed to infiltrate devices and networks. In addition, they’re exploiting flaws in industrial control systems, like SCADA (supervisory control and data acquisition), which manage critical infrastructures such as water treatment facilities, electrical grids, and transportation systems. These types of attacks can disrupt operations or destroy equipment.
Cybercriminals aren’t just targeting consumer accounts; they’re also targeting businesses. Businesses rely heavily on data to operate efficiently and often store that data in the cloud. Because they don’t want to lose that data, many companies keep backups of their files in multiple locations around the world. Cybercriminals can now hack into these backup servers and retrieve the data they need to wreak havoc on a business.
And while cyberattacks are usually directed toward individuals, they can also be aimed at groups of people. For example, some cybercriminals seek to undermine government confidence by launching false reports about political dissidents. Or they might launch DDoS (distributed denial-of-service) attacks against government agencies to prevent them from responding to legitimate requests for information.
How Can Cybercrimes Affect Your Business?
There are many ways that cybercrimes can impact your business, whether directly or indirectly.
Disruption in Daily Operations
In addition to stealing money from businesses, cyberattacks can cause significant disruptions to daily work.
Cyberattackers are increasingly targeting businesses directly rather than just individuals. This shift toward corporate targets is driven by several factors, including the fact that many organizations lack adequate security measures and that hackers can now quickly obtain stolen credentials from breaches.
In addition, hacktivist groups have used online campaigns to target specific industries, such as pharmaceutical firms, banks and retailers.
The most common form of attack is called “denial of service,” or DDoS. Here attackers flood targeted networks with traffic, making it difficult for legitimate users to connect to resources.
Another tactic is to disrupt regular business activity by deleting files and crashing servers. Hacktivists have even gone so far as to shut down power grids, though this attack is rarer and harder to execute.
More recently, some hackers have begun to focus on obtaining sensitive data by infiltrating networks or exploiting weaknesses within the software. For instance, about 6% of companies report having to pay a ransom to regain control of critical IT systems.
Another attack involves compromising critical infrastructures, such as water treatment plants or electrical grid systems. These attacks require extensive planning and knowledge of how to compromise the system.
However, criminal gangs are becoming adept at carrying out similar attacks, and there have been cases where hackers have successfully infiltrated the electric grid and caused widespread blackouts.
Finally, hackers increasingly focus on intellectual property, particularly trade secrets and proprietary technology. They can do this because of the vast amounts of data stored in cloud computing environments and the ease with which employees can transfer confidential documents via email attachments.
Skyrocketing Costs To Recover Damage
Businesses often spend significant time and money recovering from cyberattacks.
The average estimated cost of cyberattacks in the last 12 months in the UK alone is £4,200. Additionally, close to $600 billion or nearly one per cent of global GDP has been lost to cybercrime each year.
While the costs associated with each incident may be relatively small, the cumulative impact can be substantial, especially for businesses.
This figure includes direct expenses incurred by victims, such as lost revenue, legal fees and insurance premiums. It also has indirect costs, such as the loss of productivity due to downtime and the damage done to reputation when customers lose trust in a company.
Reputational Damage for Your Brand
Cybersecurity threats also pose serious reputational risks for organizations. This includes loss of customer trust, brand erosion and regulatory penalties.
The largest retail chain in America, Target, suffered a significant blow to its reputation after hackers broke into its network and stole customer payment card information. The incident occurred in 2013 and affected about 40 million households.
In response to the breach, Target announced plans to implement more robust encryption technology and hire a chief information officer. In addition, the retailer paid out $18.5 million in credit settlements to resolve charges related to the incident.
In January 2014, JPMorgan Chase agreed to pay $1 billion to settle claims brought by federal regulators over allegations that the bank mishandled consumer information during the 2008 financial crisis. As part of the settlement, JPMorgan admitted no wrongdoing and did not admit liability.
Both brands mentioned above were forced to take steps to improve security following the breaches. This included implementing new policies and procedures, hiring additional staff and improving training programs.
However, it’s important to note that these measures only go so far. Even if companies invest heavily in security, they still face the risk of being breached, which damages their reputation and causes them to incur significant costs. In addition, as an organization, such incidents can have a negative effect on your company’s bottom line.
Changing In Business Practices
Cybercrime can affect businesses in more than just a financial way. A recent survey found that nearly half of small businesses reported being victims of data breaches. While many of those incidents involved the theft of customer information, some included attacks on systems used to process payments and even attempts to alter records to change payment amounts.
Companies must rethink how they gather and store information to ensure it doesn’t fall into the wrong hands. They must also consider securing sensitive data stored on computers and mobile devices.
Customers are also more aware of what happens when they do business with a particular organization. For example, they want to know whether the industry has taken steps to prevent hackers from accessing their accounts. They’re also more likely to patronize companies that are upfront and open about how they handle security issues.
Stolen Intellectual Property (IP)
Another area where cybercriminals target businesses are through intellectual property theft. Cyberattacks often involve stealing trade secrets or other proprietary information. This includes everything from software code to product designs.
For instance, according to an intellectual property advisory, Ocean Tomo, 87% of the value of S&P 500 companies consists of IP assets. If a hacker gains access to this information, they may use it to create counterfeit products or services.
Theft of IP can lead to lost revenue for a company as well as increased legal fees. It can also result in lawsuits against the company.
To wrap up, While cybercrime isn’t something most organizations plan for, it does happen. The best thing you can do is prepare ahead of time. You should assess your current cybersecurity practices and determine areas where improvements need to be made.
You should also identify potential threats and vulnerabilities and develop plans to address them. Finally, implement safeguards to protect yourself from future attacks.
