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The Impact Data Breaches on Market Reputation and Customer Acquisition

The repercussions that may follow a breach can be severe and drastically impact organizations. Often it is assumed that a data breach only has short-term consequences like operational downtime or data loss, however, the truth is that data breaches have a long term impact on organizations.

Be it market reputation or stock values, a data breach tends to have a severe impact on businesses. Moreover, customers do not want to do business with companies that cannot guarantee the safety of their personal data which includes their name, address, contact details, credit card info, personally identifiable information (PII), social security number, etc.

The news of a data breach is a single click away, as stories about such incidents are more likely to be trending and dominate the Google search results for quite a significant amount of time. While you figure out a way to contain the damage due to the data breach, it has already reached thousands of customers.

Here are some of the long-term effects of a data breach that you should know about:

Author Bio – Aaron Cure

Aaron Cure is the Principal Security Consultant at Cypress Data Defense and an instructor and contributing author for the Dev544 Secure Coding in .NET course.

After 10 years in the U.S. Army, I decided to switch my focus to developing security tools and performing secure code reviews, penetration testing, static source code analysis, and security research.