In the world of cybersecurity, phishing is known as one of the most insidious and damaging attacks. Despite years of awareness campaigns and training, people and organizations around the world continue to fall victim to this tactic. But what really are the consequences of phishing? This article dives deep into this issue to understand the many facets of the impact.
Direct financial losses
One of the most obvious and direct consequences of phishing is financial loss. Individuals can lose large sums of money if their bank information is captured. For businesses, the financial consequences can be even more devastating, ranging from fraudulent transactions to extensive financial embezzlement. Businesses can be “offline” for extended periods of time and suffer significant losses that way as well.
Beyond direct losses, there are also substantial costs associated with recovering after a phishing attack. This includes technical recovery measures, legal costs, compensation to customers and spending on PR campaigns to mitigate reputational damage. In addition, when ransomware is involved and no backups are present, a lot of important data can be lost.
Breach of trust with customers
An underestimated consequence of phishing is the damage to a company’s reputation. Customers trust companies with their data and expect it to be protected. A breach can damage this trust, resulting in loss of customers.
The media attention that follows a major phishing attack can be significant. Such publicity can cast a shadow over a company’s brand image for years, making it difficult to attract both customers and talent. People sometimes say, “there is no such thing as bad publicity,” but that flyer often does not hold true for small and medium-sized businesses.
Loss of corporate data
Phishing attacks often aim to gather sensitive information, which can lead to loss of vital business data. This can range from customer information to intellectual property. Earlier in this blog, we briefly discussed ransomware, where that can be lost forever if there is no backup in place.
Technical recovery costs
After an attack, systems often need to be cleaned or rebuilt. This process can be time-consuming and costly, especially if ransomware or other malicious software is involved.
Stress and anxiety
People who are victims of phishing can experience intense feelings of stress and anxiety. Especially if you are the one who clicked on a phishing link, causing a lot of damage to your organization. This can affect their mental well-being and their ability to continue their daily lives and work.
Victims may also develop a deep-seated distrust of digital communication, making them reluctant to use online services.
Fines and penalties
With regulations such as the GDPR, companies that fail to comply with data protection standards can face significant fines following a breach.
In addition to fines, companies may also face lawsuits from customers, partners or employees as a result of a phishing attack.
What does this mean for you?
Phishing is not just a technical attack but has far-reaching consequences that can affect both individuals and businesses. By being aware of the risks and through constant vigilance, we can hope to protect ourselves from these threats and minimize the impact of phishing.
There are still many companies, especially in SMEs, where cybersecurity is not high on the agenda. After all, people think they are not interesting enough. This is completely false. According to Accenture’s Cybercrime study, it appears that nearly 43% of all cyberattacks target SMEs.