Cybercrime is among the most significant threats to modern businesses—no matter the size of the company or its sector. With Cybersecurity Ventures predicting that the damage costs will be $10.5 trillion globally in 2025—enough to make it the world’s third-largest economy after the U.S. and China—cybercrime has become an unavoidable business risk that affects every organization with digital assets.
Investopedia, one of the world’s leading sources of financial content on the web, takes a look at 10 ways cybercrime is affecting businesses today. The reputational impact of cybersecurity incidents can outlast all other consequences, affecting an organization’s relationships with customers, partners, and investors.
The erosion of customer trust can also be significant. According to research by IBM, loss of customer trust accounted for nearly 40 percent of the cost of breaches. This comes from customer churn, marketing needs, and other efforts to rebuild trust after such incidents.
The impact on a company’s reputation can be extensive over time: Greater difficulty acquiring new customers; Challenges in maintaining business partnerships; Increased scrutiny from regulators and industry watchdogs; Higher costs for insurance and financial services; and Ongoing media and public relations challenges.
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