The Hidden Costs of a Cyberattack on small businesses

Overview

Cyberattacks can cripple a small business, but the financial damage often extends far beyond the immediate cost of the breach. When small business owners think of cybersecurity, they may believe it’s a necessary cost to prevent an unlikely attack. However, the “hidden costs” of a cyberattack—those beyond the initial incident—are what truly devastate many businesses.

In this post, we’ll explore those costs and why they make investing in proactive cybersecurity measures essential.

The Obvious Costs

Business Disruption:

A breach can halt operations for hours or even days, costing you revenue during that time.

Direct Financial Losses:

Whether it’s stolen funds, ransoms, or the costs to restore systems, direct losses add up quickly.

The Hidden Costs

Lost Customers: Per a study, 38% of customers said they would stop doing business with a company that had a security breach.

Reputation Damage: Recovering your brand image can take years. Bad press and loss of customer trust have long-lasting effects.

Legal Fees & Compliance Fines: Data breaches often result in lawsuits, especially if sensitive customer data is involved.

Insurance Premium Increases: Post-breach, businesses often face higher premiums for cyber insurance.

Conclusion

The true cost of a cyberattack is much more than the initial financial hit. Protect your business today by investing in cybersecurity strategies that save you from far greater losses down the road.