What Can Ignoring Online Frauds Cause as a Consequence?

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November 10, 2021 Business

Did you know cybercriminals often target SMEs (small and medium-sized businesses)? Data show these types of businesses are less likely to invest in their security, which leaves them more vulnerable in front of an attack.

Plus, the pandemic hit SMEs the hardest. While big companies had the budget to make a safe transition to remote work, SMEs had a tough time in doing so. This forced many businesses to use unsecured communication channels or they had to rely on employees’ home devices which only made it easier for cybercriminals to infiltrate and steal valuable information.

Still, even after all these, there are business owners who don’t see the value of a solid security system. In their minds, online fraud can’t cause much harm because they are not big enough to be “vulnerable”.

While it’s true that big companies are hit hard if there’s a data leak or a successful attack, small businesses suffer as well. And to show you just how serious the situation can get, here are the main consequences of ignoring the risks that lurk online:

Losing Precious Time & Money

The main concern of a successful attack is that cybercriminals will invade your bank accounts and empty them. There’s also the risk of them releasing malicious software in your network (such as ransomware or malware) which can lock you out of your computers or servers or slow their performance down to a point where they are unusable.

If this happens, you may be forced to pay a ransom to gain access to your own system. However, there’s no guarantee that once you pay, you’ll be left alone by the attackers. Similarly, if your network is invaded by malware, it will slow down the performance of the entire system. This can take days to clean and reset, which means you risk losing several days of work.

How to Prevent this: If you think your business can’t afford days of inactivity, focus on developing your security system. Start with antivirus and antimalware software and continue with an online fraud protection system that monitors your accounts and sends out notifications the moment it detects suspicious activity.

Losing Customers’ Trust

According to a recent study, 39% of customers said they had lost trust in a company due to a data breach or misuse of data they have heard about. Plus, the same study found that 88% of consumers wouldn’t buy from a company they can’t trust with their data.

In today’s day and age, information is the currency of the realm. Therefore, when a customer agrees to buy from your online store, they also agree to allow you to process their personal information (credit card info, name, and address). If these data are compromised in a cyberattack, you risk losing your reputation, which may indefinitely damage the trust in your brand.

How to Prevent this: The weakest link in a security plan is the human factor. That’s why businesses have to educate their employees so they can recognize a clever phishing attack or dangerous pages that try to make them reveal personal information.

Losing Intellectual Property (IP)

Data leaks and ID theft cases are also dangerous for your business’s confidential information. Business plans, secret documents for a planned merger, inventions you didn’t get the chance to patent, secret formulas that make your products unique, and more are in danger of being revealed online.

How to Prevent this: Even if your business is small, it doesn’t mean it shouldn’t work hard to protect its intellectual property. The best way to do so is to use the protection tools made available by your government. But it also helps to have a solid security system that knows how to recognize and block an attack.

Wrap Up

Online fraud is not something businesses can afford to ignore nowadays. While it may seem difficult to find the budget for a well-developed security system, it will cost much more if you forgo this step.

Any successful business must start with a solid foundation, and good online security measures represent a crucial stepping stone. Otherwise, your business and brand will be constantly at risk of crumbling into dust in front of a clever attacker who can spot your main weaknesses.