While technology has provided us with so many benefits over the years, especially within data and security, we’ve also seen a substantial amount of issues, that for some companies and organizations, have proven to be rather detrimental. Technologies such as the cloud, have allowed us to store sensitive data and information seamlessly and making it easily accessible to the necessary parties. Consider a healthcare company, for example. Large healthcare companies can securely store personal customer information within their database. However, on the other end of the tech spectrum, hackers are notoriously known for finding ways to break into these security systems and infiltrate the customer information.

When something like this happens, it not only creates an uproar with every potential client at risk, but it can also become extremely costly and difficult to fix; and it seems that as each year passes, data breaches become more and more common. So, what are the major risks surrounding a data breach?

Employee & Customer Information
One of the most considerable risks of a data breach is confidential employee and customer information falling into the wrong hands. As an organization, you likely possess any personal information from name and date of birth to social security number and bank account information. A breach happens when this information is accessed and stolen from an unauthorized individual. Once that individual obtains this information, they have the power to steal identities, money, or sell personal information to identity thieves that are seeking it.

A Financial Hit
A data breach will likely be a costly fix for any company that experiences one, especially
depending on the severity of the breach; some of these costs are obvious, while others are hidden, and may be unexpected. From fines and insurance fees to hefty legal fees, a company that was hit with a breach is likely to come across various financial obligations before they can make any necessary corrections.

A Future Target for Hackers
Once hackers are aware that a company has gone through a data breach, it tends to put that company on a potential hit list for hackers to continue to target. A breach can make it difficult for a company to get that security back, and it may take some time. This could potentially make the company a target for hackers in the future.

Reputation Damage
Any organization that goes through some sort of data breach may experience some reputation backlash. Angry customers and employees, for example, can tarnish the company’s reputation by way of the internet or media. This can ultimately cause the news of a breach to become viral and significantly damage the company’s overall reputation.