The world has welcomed artificial intelligence with a mix of awe and wonder. It has been used to colourise black and white images and even allow schoolchildren to have “conversations” with people like Albert Einstein.
However, for all the good, there is also the bad. Cybercriminals have been using AI to get access to business data, and they are more successful than ever. This means that for companies and people online, cybersecurity needs to be a top priority.
If you let your online security slack, here are some of the ways it can hurt your business.
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Financial Losses
Of course, one of the most obvious disadvantages that poor cybersecurity will have is that it will hit you in the pocket. Cyberattacks like payment fraud and ransomware can eradicate company funds in an instant and also halt operations. This can lead to you and your company needing to pay ransoms, call in professionals to repair systems, and replace hardware, not to mention the small fortune you will lose when your website is taken offline.
So, try to prevent this with actions such as multi-factor authentication around your business files (and financial files) and get a managed detection and response system (or MDR) setup. These are both sophisticated options that can prevent and alert you to any online hack threats, and with an MDR, they can even respond. To choose the right MDR for your business, look at the website Red Canary for guidance.
Loss of Customer Trust and Brand Reputation
As a brand and a business, you need to ensure that you can protect customer information. Ergo, having a data breach will quickly erode customer trust in your brand, more so if financial or other sensitive information is exposed. Indeed, research has found that companies that were at the forefront of cyber hacks lost customers, with over 80% of said customers stating that they would be happier to take their business elsewhere. So, best to prevent that from happening at all and protect your brand’s reputation.
Legal and Regulatory Consequences
The laws and regulations around data protection are becoming tighter globally, thanks in part to the rise of AI being used as a data hack tool. So, if you have poor cybersecurity, not only will you incur the wrath of your clients or customers, but you will also likely face a hefty fee. Loss of financial buoyancy will have a domino effect on your business, so even if you are a small business, it may be best to outsource your cybersecurity needs.
Theft of Intellectual Property
It’s not as common as trying to get hold of customer information, but there have been instances where a business has been hacked to get access to intellectual property. This could be product designs, pricing strategies, or even research data. This data can be used to outcompete the original business and can even be sold, causing damage to any upcoming projects or planning that you may have had.
Long-Term Business Instability
Having repeated or severe cybersecurity incidents can cause issues with your company’s survival. Important people for business growth, like investors, partners, and insurers, may pull away and may note that your weak cybersecurity is a sign of poor management and high risk. Long-term, this can be difficult to recover from and may lead to you needing to shut down your business permanently.
