How are victimised companies affected?
Companies which have been hit by cyber-attacks suffer in various ways. There is mainly the financial effect, but can also include the following:
Financial loss
There are many ways ia company can lose money when it suffers a cyber-attack.
1. Direct loss of money, occurs when:
2. Potential income is lost when:
This greatly affects firms who rely on their e-business activities, such as Amazon, Paypal or banks offering e-banking services.
Financial loss
There are many ways ia company can lose money when it suffers a cyber-attack.
1. Direct loss of money, occurs when:
- cyber-criminals break into the company's financial system and siphon (transfer out) money
- usernames and passwords to financial information is leaked online by employees
2. Potential income is lost when:
- cyber-attacks lead to the company's website crashing or becoming unresponsive
- customers are unable to access the company's commercial website
This greatly affects firms who rely on their e-business activities, such as Amazon, Paypal or banks offering e-banking services.
IT staff do more work
Cost of handling cyber-attacks
Precious resources, such as time, manpower and money, are spent to resolve incoming attacks and to protect against future ones.
When a cyber-attack strikes, the company's IT Department has to deal with information breaches instead of spending time on their main duties.
In addition, companies have to spend more money:
Precious resources, such as time, manpower and money, are spent to resolve incoming attacks and to protect against future ones.
When a cyber-attack strikes, the company's IT Department has to deal with information breaches instead of spending time on their main duties.
In addition, companies have to spend more money:
- purchase anti-hacking software to protect their computer systems
- purchase version upgrades annually for anti-hacking software
- maintain their online security systems
- hire online security consultants
Sensitive information could be stolen
Information Leak
Some cyber-criminals carry out attacks on companies to obtain the personal information of customers:
For example, hackers obtained user information from 70 million Sony accounts in 2011. Such sensitive information can be used to open criminal bank accounts and commit crime via impersonation, among other possibilities.
Cyber-criminals sometimes obtain confidential company information (espionage), in order to spoil a company's reputation or for another company to take advantage.
Some cyber-criminals carry out attacks on companies to obtain the personal information of customers:
- names
- addresses
- bank numbers
- handphone numbers
- personal identification numbers
For example, hackers obtained user information from 70 million Sony accounts in 2011. Such sensitive information can be used to open criminal bank accounts and commit crime via impersonation, among other possibilities.
Cyber-criminals sometimes obtain confidential company information (espionage), in order to spoil a company's reputation or for another company to take advantage.
Time could have been better spent
Reduction in productivity
In response to cybercrime, most companies have in place security features such as personalised passwords and security tokens. Time is wasted getting through the layers of authentication before:
The time spent going through these security hurdles might have been better spent on real work.
The chart below represents the most impactful effects of cyber-attacks on companies.
In response to cybercrime, most companies have in place security features such as personalised passwords and security tokens. Time is wasted getting through the layers of authentication before:
- an account can be used
- a file can be accessed
- a change can be confirmed in the computer system
The time spent going through these security hurdles might have been better spent on real work.
The chart below represents the most impactful effects of cyber-attacks on companies.