Tuesday, April 20, 2021

Study Shows That Data Intrusion Can Cost World’s Main 100 brands $223 billion

Study Shows That Data Intrusion Can Cost World’s Main 100 brands $223 billion

Research by Interbrand, Infosys shows financial, tech, and auto service industries may be at higher risk.

Some of the top 100 companies in the world are on the verge of losing $223 billion because of a data breach; this is as per research conducted by Interbrand and Infosys.

The two companies have released a brand value impact and cybersecurity study named: “Invisible Tech. Real impact”.

How It Was Evaluated

The two companies researched the impact of data breaches in leading top brands in all sectors. To evaluate the risk at hand, the companies identified the main effects of a data breach if a company falls victim-trust, affinity, and presence- and using Interbrand’s Proprietary Brand Valuation Methodology, the results were simulated.

The results also reviewed that financial, automobile and technology services would be the most affected companies by the risk. Simultaneously, some of these luxurious consumer goods and brands are at a higher risk depending on their net income.

The Risks Involved

According to the report, the bands affected would face the following risks:

  • The tech industry would incur a loss of $29 billion. This is almost half of the annual net come.
  • The financial industry was at risk of losing up to $2.6 billion, also half of the annual net income.
  • For the companies offering automotive services, they were at risk of losing $4.2 billion. This is way above half of the annual net income.
  • The consumer goods and luxury brands were at higher risk since they were facing a risk of 114% and 115% of the annual net income.

Infosys Head Cyber Security and Chief Information Security Officer, in his press release, stated, “during this era to maintain a good reputation as a company, you should be able to establish trust and protect your customer data. This report will help us focus on some of the advantages of evaluating the effect of the data breach on the company value and help various service providers evaluate and understand whatever their investments are worth or proportional to the risks involved.”

Interbrand Chief Growth Officer India also stated, “The lines between virtual and physical world continue to blur. Most of the companies are dependent on this world technology. We are risking higher cases of data breaches denting customer relationships with different brands. Due to the shifts, the need for re-evaluation of customer experience such as cybersecurity is undermined.”

How data breaches affect the brand evaluation

In this digital era, we are experiencing many risks in our companies brought about by Data breached. We may be in a pandemic, but we are experiencing increased cases of cybercrimes that are targeting a lot of companies globally.

I will discuss some of the major consequences of data breaches on brands:

Financial Loss

The financial impact is among the most hard-hitting and immediate consequences that any brand will have to face. According to research, there is an increase of data breach by 12%, which is a lot of money.

Reputational Damage

A report by Interbrand shows reputational damage as a result of a data breach can be destructive. It also revealed clients in healthcare, finance, and retail will terminate doing any business with companies said to have been breached.

Operational Downtime

In case of a data breach, the business may be highly affected. It is a requirement for these organizations to investigate thoroughly how the breach occurred and how the brand systems were accessed. So in the whole investigation process, the business operations may shut down until they come up with all the answers. The process may take days or even weeks until they establish the real cause of the breach.

Legal Action

According to Data regulations, every company is bound to protect their data information. In case the data is compromised, the clients may take legal and seek compensation.

Loss Sensitive Data

In case a data breach leads to the top loss of important files in the company, the results may be devastating. When we talk of important or personal data, any information may be used indirectly or directly to identify a person correctly. Such information includes:

  • Real names
  • Email address
  • Images
  • IP address

An organization needs to handle this information carefully to avoid any case of a breach.

Latest news

Related news

- Advertisement -spot_img