High Tech Security: Top Tips for Setting a Cybersecurity Budget
When was the last time you heard about a company getting hacked? Companies big or small have fallen foul of cyberattacks. The latest company to count the cost of cyberattacks is Travelex in the U.K which suffered a hack due to ransomware. Travelex supplies many of the big UK supermarkets and banks with foreign currency exchange for their customers.
And these scandals happen to even bigger companies in the U.S as well, such as Sony Pictures.
But don’t despair whether you are a big business or a small company, investing in high tech security that costs a lot can be a difficult decision to make. But here’s why it’s imperative for twenty-first-century business.
The Stats are Clear: Hacks Cost Money
The main reason to invest in high tech security – such as tech provided by a local company – is that all the evidence suggests hacks cost serious money.
Hackers target big companies because they believe these companies have more money to payout in ransomware attacks. Hackers also think big companies would rather pay up than receive negative press.
However, the mentality of some criminal hackers is that bigger companies are harder to hack. They might assume big companies have invested more money in cybersecurity.
43% of hacks now target small businesses. This is because of a belief that small businesses might not have as might not have bothered to protect themselves. This is why cybersecurity for small businesses is important.
It’s also estimated that hacks cost every business $200,000 on average. The amount of money you stand to lose on hacks outweighs the money you can spend on protecting yourself with high tech security.
Liability: Don’t Get Done
Imagine if you were running a company that housed safety deposit boxes for customers to keep their precious gold and money safe that was robbed.
And now imagine the outrage in the press that would ensue if journalists exposed some inconvenient facts. The security guard you had employed was asleep on the job, the CCTV didn’t properly cover the entrances to the safes and the front door wasn’t properly locked.
Angry customers would rightly begin legal proceedings against the company, arguing they were liable for compensation.
You should think about cybersecurity in the same way. If the company has not kept its customers’ data safe and their banks or accounts are subsequently hacked customers might start legal proceedings.
Remember that you might also be answerable to your shareholders. They will demand answers from you. This will depend on the structure of your company.
They could take away your ability to set your own budget for cybersecurity and could dictate cybersecurity arrangements.
In worse case scenarios shareholders or directors could even insist on the resignation of senior figures. These could include the CEO or the head of IT if they are known to have been negligent in terms of cybersecurity or there are negative press headlines.
Another reason to ensure your budget for cybersecurity is sufficient is the negative headlines it can generate and the business that you can lose.
If you pride yourself on the customer experience, the last thing you want is a story in a newspaper criticizing the fact your customer’s details have been hacked.
Even if you are doing the right thing, the media storm that a newspaper report generates can cause normal processes to break down. The media can also lie or exaggerate claims which are unhelpful for your reputation and your customers.
As a small to medium-sized business, it will be difficult for you to demand the right to reply or to put the facts straight.
Compliance with Data Protection Laws
Another important reason you should ensure you should invest in cybersecurity for small businesses is not doing so could put you in breach of new data protection and cybersecurity laws. It could also stir up controversy in the press.
If you have breached them then your company will soon find itself in court, not for a civil lawsuit brought by a customer, but by the government or relevant authority.
If they are nice you will be told to comply or face a fine; if the government wants to make an example of your company, they will fine you without warning.
Some organizations and directives that you need to comply with, depending on your location, include the PCI Security Standards Council which oversees online payment and GDPR – the General Data and Protection Regulation – for accessing websites in the EU and UK.
High Tech Security Is Worth It
If you are thinking about whether to invest in high tech security, ignore the naysayers and go for it.
Complying with data protection laws has never been more important. People are starting to question how much privacy they have online. Providing the level of security and privacy they want requires you to have high tech security.
Hackers are more powerful than ever. They are increasingly targeting small businesses with ransomware as well as larger firms. This can impact your reputation in the media and with your customers.
Secure your company and your customer’s data. If not, it can lead to legal cases as customers sue for compensation.
Shareholders can even be forced to step in to remove members of staff who set company policy not to invest in new technology or for not identifying weaknesses in cybersecurity.