How a Security Breach Can Impact the Value of Your Brand

How a Security Breach Can Impact the Value of Your Brand

One of the most vulnerable parts of an organization's infrastructure is its website and web applications. Cyber criminals are always scanning through websites looking for any vulnerability they can exploit. This has increased the frequency and intensity of cyber attacks with most organizations reporting to have suffered at least one cyber attack. When a security breach occurs, it impacts negatively on the value of your brand and can even drive you out of business in extreme cases. Some of the most detrimental implications of a security breach include:

Tarnishing Your Brand's Reputation

When a security breach occurs, information about your customers is leaked. The trust of people who had entrusted their information to you is eroded. This loss of trust usually translate into long-term losses after your customers leave and it becomes almost impossible to win new ones. Information leaked during a hack may also contain your private documents and personal communication. Once such sensitive information is made public it might live forever no matter how hard you try to erase it.

The Costs of a Security Breach

There are heavy costs associated with a security breach. You incur both direct and hidden costs if your brand is hacked. Research conducted on organizations that have suffered security breaches show that the hidden costs are much more significant than the direct costs. The direct costs, also referred to as above the surface costs, include; customer breach notifications, fines, crisis communication costs, attorney fees, cybersecurity improvements and technical investigations costs. The hidden costs include; increased cost to raise debt, operational disruption, devaluation of trade name, increases in insurance premiums, etc. Hidden costs are also known as below the surface or less visible costs.


When executing a cyber attack, hackers like to plant false information on your website. When this information is accessed by your customers and other members of the public, the reputation of your brand will be damaged in a matter of minutes.


When your system is hacked, sensitive information such as your brand bank account information, trade secrets, and classified documents are likely to be accessed by these criminals. They can use the bank information to steal from your accounts, sell your trade secrets or just leak them out to your competitors.

Damage To Intellectual Property

The theft of your intellectual property is as bad to your brand as when your identity and money is stolen. When hackers steal your plans, ideas, and blueprints, it becomes very hard for you to come up with the products and designs you had previously planned for. This will keep your brand from expanding while your competitors keep growing. Eventually, you will lose your customers to your competitors or be pushed out of business.

Small and Large Enterprises: Difference in the Impact Caused by a Security Breach

Security breaches on big enterprises create news headline while very few security breaches on small enterprises are made public. This has led small enterprises to believe they are immune to these attacks.However, the small enterprises are more vulnerable to these attacks and the effects it has on them is much worse. This is mainly because the small businesses rarely have the resources to deal with a security breach and most of them lack an insurance cover against such attacks.

No matter the size of your brand, a security breach will leave your customers shaken causing them to shift their businesses to other brands. You should, therefore, prioritize on the security of your brand. It may be costly but it is worth it. Hackers will keep devising new ways to attack websites and the only way to keep your brand secure is to always keep your security systems updated.

About The Author

Kelly Stark

Kelly lives in costa mesa, CA. She is a newly engaged to her partner and now planning on their upcoming wedding. Her favorite thing to do is watching movie with her friends and loves to read books.

About The Author