In simple words, a data breach is the accidental or deliberate infringement of releasing information to an unprotected source or receptor. Although this breach might have been done on accident, most of the times, it is intentional. Besides, this information can be passed onto other cyber sources as well. Highly sensitive information, such as credit card numbers and personally identifiable information (PII), protected health information (PHI), online accounts are major targets in this area, especially in the cases of tax fraud.
Apart from the lost data, there are also considerable hidden costs of data breaches incurred by companies and associations that were the victims of data breaches. Enumerated below are some of the hidden costs of data breaches.
When a company has incurred a data breach, it automatically puts them in a compromised and vulnerable situation. There are some enterprises which terminate all operations until the problem has been solved and there is a guarantee of security again. This process of restoring and recovering data can be a long and arduous one. Not to mention that the task itself is extremely costly. All this contributes to a major loss in the overall margin. These breaches are almost always the result of criminal activities, thereby forcing the companies to safeguard the rest of the vulnerable information that might have the chance of being mishandled and jeopardized.
Loss of Time
The data breach can take be a matter of seconds, while the damage control procedure can take a long period of time. In this time, the enterprise as to identify the source of the breach and the necessary steps to be taken to protect its sensitive information, along with ascertaining that there is no such mishap in the future. In addition, there is also a hidden cost of relocating employee resources during this compromised period, with superfluous losses of losing information and work on current projects. If this is the case of a large company, the entire market campaign as to be put in place for damage control and to disseminate the message to its customers.
Lost Customer Relationships
This incapacitating event has a high possibility of contaminating the consumer mindset about the enterprise. The loss of faith will lead to a loss in the number of customers as well. This is the greatest loss of all as it is very difficult to restore the same faith in their hearts. This devaluation of the name of the company will consequently lead to a damaged reputation that can have increasingly negative impacts on the business.
To be on the safe side, you must always hire reliable and certified data recovery services, like Platinum Data Recovery (active in Los Angeles), to assist you in this crucial situation to mitigate your loss and find the optimal solutions to your problems.