Facing a data breach can be devastating regardless of what was done to the information stored. The effects of this get worsened if the information was distributed or maybe even held for ransom.
Smaller businesses do not stop to think that they are also at risk of facing a data breach that could put a dent in their pocket. Why are the data breaches increasing and hurting businesses? Here are 5 points that shed light on these questions.
Cloud server misconfiguration
Cloud technology is starting to become the most used technology as the 4th Industrial Revolution intensifies. However, the advent and development of cloud technologies like managed servers have created some risk surrounding it. For example, a misconfigured server can have devastating effects on a business when it is breached and information is leaked.
That is why it is important to understand what is an FTP server and using it instead to transfer more sensitive documents. With GoAnywhere’s enterprise-grade FTP servers that can be monitored remotely on browser interface, even misconfiguration can’t lead to safety breaches. That’s because GoAnywhere FTP servers use multiple permission controls and authentication methods.
Credential stuffing on the rise
Another reason why data breaches are increasing and hurting businesses includes sophisticated attacks such as credential stuffing. Credential stuffing includes a widespread attack that is automated to gain access to user accounts. These stolen account credentials can lead to losing significant amounts of data without realizing it until it is too late.
These attacks hurt businesses because they are liable for repaying the customers for their damages. Credential stuffing can be prevented by using credential stuffing detection software available. The software is much more affordable when compared to facing a breach.
Lucrative cybercrime market
Cybercrime is growing strong because of the large market it has developed. For example, cybercrimes have become something that people need to get back to others or make a profit. Therefore, cybercriminals breach systems and then sell the information to the highest bidder.
The buyer will then use the information anyhow he sees fit. This market is very lucrative and is on a steady incline. Since people hook up on the dark web, they can deal anonymously without the police detecting them. This makes it hard to stop this market from growing because of the discretion and anonymity of it all.
Disrupted operations
A data breach can be a great inconvenience to business owners because it disrupts operations. When operations are disrupted, a lot of profit and revenue is lost and cannot be made in any other way. The disrupted operations can also lead to the company closing down if the data is held at ransom for a value exceeding the business’.
This is especially true if the company did not have ransom insurance to pay off the debt. Therefore, to avoid situations like these, you can add some ransom insurance on top of the ransomware.
Loss of reputation
No one would like to deal with a company that does not care about their data and that does the least to protect it. Hence, customers will show a lack of faith in you and your promises going forward. The reputation loss can have grave effects on your profit and revenue margins.
Facing a breach can even run you out of business due to a lack of good faith between your company and clients. When considering these negative effects, you should get the best security systems to protect privileged data from falling into the wrong hands. Your reputation will be intact and you can continue growing the business without facing setbacks such as data breaches