With so many continuous technological advancements, the business world has transitioned into a ground where users’ most sensitive information is stored, shared, and accessed through the cloud. It’s essential for companies to safeguard this data, which is why cybersecurity should be of utmost importance in any company. Findings have shown that cybercrime accounts for over USD600 billion annual costs for the global economy. In 2016 alone, a global research report comes days after the White House released a report showing cyber attacks cost the United States between $57 billion and $109 billion. Many companies think that they won’t be a target of the cyber-attack, either because they’re too small or they just don’t think it could happen to them. However, in reality, cybercrime is a growing business, and everyday hackers are targeting hundreds of thousands of businesses. Besides other devastating information, they can take the customers’ private credit card information or even leak the internal emails. No matter what the hack consists of, it’s always incredibly damaging for a business, the customers, and the employees.
Every year, companies are unveiling emerging technologies with exciting opportunities for business expansion and each new development gives another opportunity for cyber-predators to access and illicit use of proprietary data. Nowadays, people are extensively connected with each other, where gadgets, systems, and software changes consistently. It is very difficult to have a prevention and a safety plan to safeguard against massive cyber-attacks that can greatly hinder a business’ performance. Following are the key reasons that explain why investing in cybersecurity should be a top priority for businesses.
- Exposure and Use of Smartphones for Cyberattacks
Corporate smartphones technology is relatively new but the rate of adoption is exceptionally high, which creates a plethora of opportunities for cybercrime. Smartphones and other connected IoT devices are particularly vulnerable due to their newness to the market which makes them fairly unprotected. Smartphones of small sizes which can be easily transported have the ability to hack gigantic systems used in airports, terminals, and big cities increasing the potential for theft and eventual cyber-attack. In addition, there are numerous mobile malware which can easily embed themselves via public WI-Fis. Using customized hacking technologies, smartphones possess the ability to access any company’s information 24/7, which in many cases can become a dangerous breach of privacy. In a recent scenario, hackers breached into the systems of Tesla through its Amazon Cloud account that had no password and exposed Amazon S3 bucket that held telemetry, mapping, and vehicle servicing data for Tesla. For more details about this hacking, Click Here.
- Powerful Cybersecurity System Boosts Customer Trust
Having an advanced and robust cybersecurity system is a strong selling point and a differentiating factor when it comes to client acquisition and retention. When a company guarantees and introduces their security infrastructure to prove that all company stakeholders’ privacy and sensitive information is protected, it builds a great trust among its investors. Such practical assurance not only provides an exceptional feature, but also creates a buzz in the business. Customers of such organization will do the sales via reviews, word of mouth and additional purchases and investments in that company’s products or services. It is still early in the game to come in as a first mover and build a strong brand loyalty to the firm while contributing to the safety of the clients. Furthermore, PwC’s Global State of Information Security Survey 2018 states that “87 percent of global CEOs say they are investing in cybersecurity to build trust with customers.” According to this report, approximately two-thirds of respondents had already appointed a chief privacy officer.
- Lower Costs of Cybersecurity Investments
Regardless of the industry, company size, product, or service, cybersecurity is a crucial element in today’s business world. The cost of data breaches is higher than the actual cost needed in setting up an effective cybersecurity system. If a company does not have an operating cybersecurity department, they most likely invest in a cyber-insurance to create a safety net if breaches occur. In the year 2017, Forbes reported that Target had cyber insurance costs of USD100 million and after the cyber-attack, it faced the cyber-theft losses of USD450 million in April of 2018. Furthermore, due to a recent unexpected cyber-attack, its total losses are projected to reach USD1 billion, which has greatly hindered its image and reputation. Because of such tremendous losses, establishing a cybersecurity team and implementing an internal system is a wise decision that can save any firm millions of dollars and protect the brand from public embarrassment.
- Need to Face Strict Regulatory Actions and Official Audits
The introduction of cybersecurity regulations became official in various cities, including New York City, which is one of the world’s biggest business capitals. Being a victim of cyber security attacks can subject the company to ongoing regulatory reviews forcing it to comply with several audits, incident response plans, limits on access privileges, additional tax compliances and more. Moreover, cybersecurity regulations come with considerable penalties with short deadlines, which vary depending on the industry, and the incident. Being sanctioned to regulations can harm the company’s reputation among lenders, investors, and insurance companies. The negative effects will be reflected in increased loan rates and insurance premiums. The truth is that cybersecurity is more than a forward-thinking move at this point and is becoming crucial for a stable company and all business owners that plan to succeed in today’s economy. Building an internal cybersecurity team is a smart decision because it will give the company leverage among competitors. Likewise, it gives an opportunity to learn best practices to protect their own information as well as that of their clients.
Investing in the reliable cybersecurity system has enormous potential to safeguard one’s company from cyber threats. After the WannaCry attack, cybersecurity became a top priority in organizations of every type all over the world. Also, the young cybersecurity industry became a hot topic on Wall Street, and many stocks soared in price. To be the secured business, investing in the necessary training to educate employees on how to protect the company’s, customers’, and personal information can be of great benefit. Scheduling routine meetings that focus on the latest cybersecurity scams and sharing what the employees should be looking out for can bring awareness about such increasing cybercrimes. In its magazine, “The 10 Most Prominent Personalities in the Security Industry, 2018,” Mirror Review unveiled the top 10 stories of cybersecurity entrepreneurs.
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By Mayur Shewale (Assistant Writer)
