Data loss continues to pose a threat to businesses

Data loss continues to pose a threat to businesses

Data loss and security breaches dominated many of the headlines in 2014, with a number of high-profile organisations suffering at the hands of hackers, affecting millions of customers and employees.

There were few digital industries that emerged unscathed last year, with many experts viewing the year's events as something of a wake-up call for data security, particularly with the amount of information being used, stored and shared by organisations continuing to increase.  

Technology research firm IDC, estimates that the amount of data created and copied will reach 44 zettabytes by 2020, with much of it being spread over multiple devices, including computers, the cloud, smartphones and tablet devices.

Data loss leaves you out of pocket

One of the most noticeable consequences of a breach is loss of finances, with there being plenty of cases where organisations have been left considerably out of pocket.

In incidents concerning financial data, the potential for monetary loss is clearly heightened, but any breach or loss of data has the potential to burn a hole in the pockets of companies, no matter what their size.

Indeed, the 2014 Cost of Data Breach Study, found the average amount lost by companies suffering a loss of data was $3.5 million (£2.21 million), 15 per cent more than last year's figure.

One of the most high-profile breaches from 2013 was that of US retailer Target, which saw costs spiral over the resulting months to eventually stand at $162 million, although experts claim the actual total could now be $191 million, with costs coming from lost revenue and regulator fines.

Lost reputation

Reputation is a key part of running a successful business and the news of a data breach can repel a large majority of a company's customer base.

Such a situation can cause financial damage to last even longer as if customers are not spending as much money for a company's services, there is inevitably going to be a loss in revenue.

The general public are so weary of potential data threats that even charities are not safe from losing out.

Research published by Populus on behalf of Zurich in April of this year found that 69 per cent of Brits would lose trust in a charity’s ability to keep their data secure in the event of a loss or a breach, while another 56 per cent said it would decrease their trust in all charities’ ability to safeguard data.

If people can potentially harbour such mistrust for charities, then companies will stand little chance in ensuring their reputation is not at least slightly blemished by a data breach.

Given that cyber attacks are evolving all the time, there is understandably a significant level of concern about the best way to safeguard their systems. Arrow Communications has a wide variety of solutions that will help you keep your data safe without compromising on performance.