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Hidden Costs of Cyber Attacks for companies

Cyberattacks are more and more in the spotlight from small to large organizations. With each new cyberattack that occurs, the risk of structural damages to the organizations’ increases as well as economical risks. It has been possible to learn that the percentage of companies that have not been victims of a cyberattack is smaller every year since every day the “successful and unsuccessful” attacks increase in number. However, being the object of a cyberattack can produce many more emotions that are not positive for the victim; within these, we find mainly the anxiety to learn if one has been affected and in what way, adding also a concern for the company’s reputation and therefore the obvious economic losses.
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Hidden cost Exceeds Expectations

Now, the average cost of a cyberattack in the year 2018 was 1.6 million dollars that for the year 2020 it will surpass 3 million dollars. And this is not all since thanks to the testimonies of companies that have been victims of attacks, it has been discovered that the attack is more costly when a client is lost, given that you don’t only lose money but you also lose reputation, credibility, positioning, and trust.

In a global view, all the companies of any market are vulnerable to a cybernetic attack, the hackers are not condescending to the type of market, but the companies that are mostly their target are Banks, Insurance companies, risk capital, Investors, known giant corporations, government entities, non-profit organizations. Each one of those mentioned above has a unique value. The data and personal information of each user which allow studying their behavior and thus selling this to the companies that generally carry out studies or analysis of users or basically studies of publicity promises to be the new gold for the new decade. And the new gold is also produced by the company’s data, which has a lot more to lose than the ordinary user.

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Hidden Costs of Cyber Attacks for companies
However, although theft of information is mentioned, different types of attacks exist which have been categorized by the level of prominence which varies each year. Through several studies carried out by different important entities of security, it is affirmed that the most common attacks were with Malware or malicious codes, a practice of seizing information, devices or structures. On the other hand, Phishing is positioned as 2nd, a technique that is quite old but today has resulted quite effective for many hackers.

It is also necessary to know the reasons or origins of the attacks. Mainly it has been demonstrated that most of the attacks enter the systems through human error. Yes, that is right! Because the companies at the beginning do not understand the importance of training their employees so that they detect malicious mail or so that they don’t go into pages of unknown origins, nor should they accept any digital invitation from unknowns. Also, little investment is found in both digital and physical infrastructures for the maintenance and audits of the devices of the company so that they can be debugged, optimized and totally cleaned monthly, quarterly or semi-annually. And lastly, we can also find the response time to each irregular situation. Even if this one we list as last it is very important since many companies have their security department, but they are trained to give a quick answer to any strange eventuality inside their systems.

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Even though in the last years we have seen a strong investment of money in the security environment in companies, there are still few and there are many companies that do not even have someone inside to oversee the movements inside their systems or at least to perform the adequate maintenance of the devices. Every 39 seconds there is a cyberattack and every time they try it again the risk increases. That is why the importance of giving a prompt response was previously mentioned since it is estimated that for every breach that is discovered the loss becomes larger each time and it is more tragic. The attacks occur DAILY, they don’t take place just for an interval of time, they don’t stop, and much less do they have rest periods. Some data has been published by the companies Cybint Solutions and Cybersecurity Ventures which report the following: “95% of the security breaches are due to human error, more than 77% of the organizations do not have a response plan for cybernetic security incidents. The total cost of cybercrime, at a world level, summed more than one thousand million dollars during the last year and it is estimated that the average cost of a data violation in 2020 will exceed 150 million dollars”.

In conclusion, the companies cannot go on looking at the situation from a comfort zone, thinking that “this will never happen to me”. The investment for companies in informatics security is vital in order to maintain the company afloat and not suffer any risk in reputation, loss of clients nor economic losses or at least to reduce the losses. The best recommendation for the companies is that they train all their personnel so they learn how to identify the malicious emails or any threat no matter how “simple” it seems, also they should acquire the optimal tools for the protection of the databases and personal information of the clients. Among those as the main element, a data encryption software becomes vital in order to safeguard the personal information of its clients and to keep it protected from any risk. In essence, all the data of the company, accounting, marketing, clientele or technological, must be safe under a reliable data encryption system that has the advantage that, even if the information is stolen, this will not represent a profit for the plagiarists.