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Austin TX Business Law Blog

Monday, November 28, 2022

The Costs of a Cyber Security Breach of your Business

Using the digital space for one reason or another is becoming an essential part of more and more businesses every day. Everything from business accounts to personal data is stored digitally. Unfortunately, personal data is held at a premium and worth seeking to exploit by many. With many out there looking to poach private personal data for profit, businesses need to take cyber security seriously or reap some pretty serious legal and business consequences. Steps to put preventative measures in place to guard against cyber attacks on your business can be well worth it. After all, even if the chance of such a data breach occurring is remote, the fact that it could happen and the consequences could be very severe makes the cyber security effort worth it in and of itself.

The Costs of a Cyber Security Breach for your Business

There are a number of reasons why businesses these days need to make cyber security one of their biggest priorities. Consider, for instance, the fact that customer data is likely to be stored digitally. This data is extremely sensitive and often the subject of cyber attacks as individuals look to gather sensitive information and exploit it for profit, influence, or both. The implications for a business that has had a customer data breach can be dire, to say the least. Consider the headache it can cause for the customer. Consider the loss of trust in your business. Such a breach can cause irreparable harm to a business’s reputation. Once you lose the trust of your customers and tarnish your reputation, there can be no coming back from this. Furthermore, leaks of your cyber vulnerability re likely to encourage more cyber attacks.

The damage a cyber security attack could take on your business becomes even more serious when you consider the fact that not just customer data is likely to be digital, but business operations are as well. With business operations becoming more and more cloud based, the need for strong cyber security measures in place become more and more critical. Some of today’s businesses are run almost completely online. They have no real, meaningful physical presence. Can you imagine the damage that can be done to such a business in the event of a cyber security breach? The entire business could be compromised simply through internet access.

In addition to the consequences for your customer base and your business, there is also the fact that cyber security is important to guard against legal consequences. Regulations pertaining to cyber security in businesses are becoming stricter and, as data protection issues persist, regulations are not going anywhere either. The Federal Trade Commission (FTC) has taken up the task of customer data protection pursuant to the powers it is granted under the Federal Trade Commission Act. Businesses need to start considering cyber security measures now in order to remain compliant with regulations as well as prepare for the development of broader, stricter regulations down the road.

Business Law Attorney

Has your business been exposed to a cyber security breach? Do you worry that your business is not in compliance with regulations related to business cyber security? Come find the answers you are seeking at The Kumar Law Firm. Contact us today.


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