Cybercrime is becoming increasingly prominent as more businesses than ever before are keeping valuable data online. Thousands of companies fall victim to these crimes every year with losses totaling in excess of 400 billion dollars. Cyber risk does not only include companies losing data but also customers having their credit card information being stolen, which negatively affects the public’s perception of the corporation. For these reasons and more, it is vital that every business increase its cybersecurity efforts.
Preventing cyber crime is a board-level responsibility. It is something that top executives at a company need to be aware of, and it cannot be relegated to a lower position’s duty. The owners of a company need to have an active role because it is required of public companies to disclose the business’s risk of cyber attacks to any potential investors. This could affect who is willing to invest or not. Therefore, it makes sense for every company to ramp up its efforts.
Falling victim to a cyber crime also places the company in a vulnerable position where it is open to lawsuits. Customers who are angry that there was inadequate cyber security and that their information was stolen can often sue the company. While a liability insurance policy can help the organization out in these circumstances, it would be preferable for everyone involved to avoid these instances when possible. There is generally no way for companies to sweep these occurrences under the rug because 47 states in America require by law that businesses involved in data breaches report any attacks to state authorities.
Protection against cyber risks is no longer a luxury companies can decide whether they want or not. It is vital all businesses have secure networks and firewalls in place to prevent outside parties from accessing consumer information. If you believe your company’s cyber security could be improved, then start taking steps to enhance it.