Data Breaches Cause Long-Term Damage To Businesses

Data Breaches Cause Long-Term Damage To Businesses

According to a major study conducted by KPMG, as much as 84% of Canadians state that they will reconsider doing business with an organization that has suffered a data breach.

To those who have kept their finger on the pulse, this comes as no surprise. As we have mentioned before, cybersecurity is becoming an essential part of any organization’s insurance plan in the modern day.

The consulting firm surveyed thousands of people and found that, not only did a vast majority of people distrust businesses after they had suffered data breaches, but also that approximately a quarter of those people had their login credentials stolen as a direct result of data breaches.

Whilst cybersecurity has been a major topic of discussion in tech circles for the better part of a decade, this discourse has found its way in the mainstream in recent years.

Why is this?

Simply, more Canadians are affected by data breaches today than ever before. This has raised awareness of the issue in the general populous.

Another important factor was the timing of this survey. Only a month prior, the federal government revealed that thousands of stolen usernames and passwords has been used to apply for various services.

Since then, the Treasury Board of Canada has revealed a whopping 48,000 Canada Revenue Agency accounts had suspicious activity attached to them after cyberattacks occurred in July and August of 2020.

Furthermore, KPMG stated that cybersecurity threats had been greatly heightened by COVID-19 as people began using more online accounts for work and leisure.

“Cyber criminals are ruthless. They’re after your identity, login credentials, money, and sensitive information,” said Hartaj Nijjar; a national leader in cybersecurity.

Moreover, another reason for this surge in cyber awareness amongst the population is that the government itself led a national public awareness campaign on the dangers of inadequate cybersecurity.

The messaging for the people seems to be clear as ever – if an organization does not take care of its customers’ data, the vast majority of those customers will take their business elsewhere. There is a demand for companies to be held accountable with their cyber security that has never before been seen.

KPMG’s survey further showed that 90% of responders were reluctant to share any personal or financial information with an organization that had suffered a data breach. This could prove to be especially destructive to organizations in the online age as the emphasis on a good reputation is more important today than ever before.

More and more Canadians are using online platforms in all aspects of their life; something that is caused either by necessity due to the Coronavirus and/or because people are becoming more technologically inclined. This has clear consequences for organizations that do not take cybersecurity seriously as they will no doubt be left behind and lose millions in revenue.

If your company does not have adequate cyber protection, now is the time to act. Cybersecurity is no longer an idea of the future, it is a necessity of the present.

To learn more about how to keep your business protected, email one of our licensed experts today at This email address is being protected from spambots. You need JavaScript enabled to view it. or call us at 905-696-9090. Let us help you stay safe!

 

 

Natural Disasters & Insurance
Cyber Crime and Transport