Cyberattack : The Hacked Site And Computer Security
A cyberattack is a malicious act ( hacking, data theft, etc. ) that targets computer systems. It affects various computer devices. In particular, computers, servers (isolated or in networks), connected to the Internet or not, but also other peripherals such as printers.
Cyberattacks affect professionals ( such as administrations or businesses ) as much as individuals. Although there is an increased awareness of the consequences of a cyberattack, too many companies still overlook the risks associated with these threats. Especially when it comes to spending extra budget on IT data security, however, a hacked site or a cyberattack can have catastrophic consequences across the whole organization. IT security is a real strategic axis for companies.
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The Physical Consequences (On Equipment, Installations) Of A Cyberattack
A cyberattack directly affects computer equipment: contaminated computers, servers, networks, unavailable websites… This can be problematic for a company whose activity is primarily paralyzed.
The IT tool may be made unavailable due to a computer virus that has been accidentally contracted or due to a deliberate cyberattack: this aims to stop the services or resources of a company or to cause a denial of service ( DoS ).
This type of attack is often the work of hackers who use malware to infect the computer systems of third parties (often other companies) while remaining anonymous and without risk of being identified. In this case, the target company feels the physical consequences, which see its IT resources put out of action. Which can disrupt or stop all its activities.
Cyberattack: Financial Consequences Often Underestimated
The most apparent consequence of cyberattacks is the loss of money. Indeed, financial resources are mainly the target of hackers. For example, unauthorized or fraudulent transfers or even ransom payments following a ransomware infection . This category also includes fines and damages.
However, even if not directly, a cyberattack systematically has a financial cost. What impacts the net result of the company:
A cyberattack is a severe incident. This often involves most of the IT staff, contractors, and external suppliers. This additional workload and the requests made to the various partners involved can prove to be very costly. Depending on the business environment, recovery costs can reach very significant sums.
For organizations that are victims of a significant cyberattack, it is advisable to investigate or hire external auditors to conduct the post-breach analysis, which requires a large budget. What are the entry faults? What were the direct damages? How to further ensure the safety of the structure? How do you limit the risks of new hacks?
Cost Of Lost Productivity
A keystone of organizations, an information system that is out of order (or even damaged) can paralyze all or part of a company’s activities. All the teams could see their productivity significantly impacted to the detriment of the results and the targeted rates of return.
Loss Of Income
More directly, a cyberattack may affect the availability of goods and services offered by a company. The shortfall and the deadweight loss for the victim companies can very quickly make you dizzy..
The Budget To Devote To Legal And PR Fees
When the company experiences a large-scale data breach, it may require dedicated legal and public relations efforts. This is to protect the company’s image, communicate with stakeholders, and initiate legal or regulatory action if necessary.
Company Valuation Drop
The consequences of a cyberattack can affect an entity’s reputation, brand image, and productivity. This can negatively affect the value of shares and the overall valuation in the financial market.
What Legal Consequences?
In recent years, cyberattacks consisting of large-scale data breaches have had the most echo in the media: hackers have attacked private companies and government institutions.
Regulatory Risk And Non-Compliance
It should also be remembered that since May 25, 2018, and the entry into force of the GDPR, any organization (subject to the regulations) victim of a data breach must inform the CNIL within a period not exceeding 24 hours, and the person concerned, where applicable. Non -compliance with this regulation involves penalties that can go up to fines equivalent to 4% of worldwide turnover (or 20 million euros).
Aside from regulatory obligations and fines, organizations also face civil lawsuits from affected customers and business partners. In systems breaches and data theft, they may also be required to prove that they were not guilty of the incident and that every effort was made to maintain the best security measures.
Not To Mention The Reputational Consequences (Reputation, Image And Notoriety)
In addition to direct revenue losses, a cyberattack also impacts the business in the long term. In particular, by affecting its reputation and brand image significantly if the data has been affected. Most companies tend to want to hide information about attacks and breaches to limit the impact on their e-reputation.
However, it has been repeatedly proven that this strategy can be dangerous. Indeed, the cyberattack inevitably leaks out and attempts to cover it up lead to a loss of public confidence.
In addition to the disorder and immediate panic that cyberattacks can cause, severe direct and indirect economic consequences are added to the organizational conditions.
The information system’s security must be an absolute priority in all structures. This non-negligible part of your organization could also be entrusted to an external company, expert in these fields.
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