Impacts of Cyber Fraud on a Business
According to the Digital Guardian, cyber crimes cost US $6.9 Billion in the United States alone. Additionally, according to Cybercrime Magazine, it is estimated that by 2025, Cybercrime will cost the world $10.5 trillion annually.
From the statistics above, it is glaring to see that no one or business is totally safe from cyber crimes. Although the risks can be mitigated to a certain level, they can't be totally avoided, which is why businesses need to be insured against such types of fraud.
This is true, especially for businesses that use technology and the internet to run their business-as most businesses do these days.
Below are Some of the Impacts of Cyber Fraud on a Business
1. Financial loss
The primary goal of cybercrime perpetrators is the business's finances. This effect of cyber fraud is extremely dangerous to the business as it can run the business to the ground and prevent it from functioning again. Or even the business function will be lower than it usually did.
2. Can lead to debt
Bank loans fund most businesses. These loans must be paid within a specified time frame, or the bank must collect the business. Or, in a worse scenario, collects or starts controlling the collateral the owner of the business left - inadvertently leading the business owner to debt. These are just 2 scenarios out of about 100s that can lead to debt in a business.
3. Loss of revenue in an attempt to mitigate the attack
When cyber fraud happens, many business owners will first look for someone or a company that can help them resolve the issue as quickly as possible. After this is done, they will be keen on ensuring that something like that never happens again.These 2 possible happenings will definitely cost money which will most likely be unbudgeted. However, if your business is insured against cyber fraud, the impact of the fraud will be significantly lessened, which is why you need to get your business insured against cyber crimes as soon as possible.
At SJ Insurance Services we offer you the best commercial cyber insurance to perfectly suit
your business and its needs.
Reach out to us here to get a free quote at 310-220-1019 or email@example.com