Last Updated on 24th January 2022
Cyber Security: You could be fined 4% of your turnover
We keep talking about cybercrime and how it can harm your business. We keep saying how your systems will be down and you may be a victim of fraud. The full extent of cybercrime is actually a lot more frightening.
The General Data Protection Regulation fines anyone who has suffered a data breach. The regulation will be applicable to all EU Member states, and it has been stated that this will still apply to the UK despite voting to leave. The regulation will fine a business up to €20 million or 4% of their annual global turnover dependent upon the severity of the breach. Organisations are now required to inform the Information Commissioner’s Office within 72 hours of having a breach of data as well any subjects of that data breach.
What does all of this mean? It means that if you suffer a cyber security attack your business may lose a lot more than a ransomware demand of €300 or a few days of your technology being out of action. You could lose it all through the strain it could put on your business’ finances.
The first expense you will suffer will be immediate. You may lose funds due to a phishing email or a ransomware demand. Your website may go out of action, losing you business if you trade online. Your line of business application may suffer causing you problems. Imagine not being able to access information telling you what a client has ordered and then not being able to make that order. They could have been a customer for years, but if you can’t deliver they will go somewhere else and they probably won’t come back.
If you lose anyone’s data then you will have to the pay the fine. Could you afford to lose 4% of your turnover? Would you still be able to pay your staff? Would you be able to grow your business as you had planned? They’re all considerations to make. If you lose 5000 client records then that is 5000 people you need to inform. You’ll have to pay for paper, ink, staff resource, postage; even just informing the people involved could make your business’ finances suffer.
On top of all of this you could end up paying for legal advice, forensic experts or even a communications specialist to help manage the situation. Not to mention losing the amount of money that you have spent building your brand because your reputation will be gone in an instant. Businesses need to make precautions to ensure that they are doing everything they can possibly can to avoid this kind of disaster within their business. Please contact ACUTEC today if you have any cyber security concerns.