In today’s world, nobody is immune from cyberattacks, not even unknown businesses. If you have an online presence or any kind of digital account, you’re at risk. Although specific businesses can become targets, most cybercriminals choose their targets based on vulnerability. They don’t find a business and decide to launch an attack – they scan the internet for vulnerable software, and that’s how they find their victims.
While some cyberattacks can cause downtime and lost sales, that’s not the whole picture. If you’re not prepared to swiftly deal with a cyberattack, you could lose a lot more than just money.
Here’s a deeper look at the true cost of a cyberattack in 2025.
Reputational damage
Customers want to do business with companies that prioritize security. Nobody wants to wake up to a news report stating a large company has just announced they were the victim of a massive data breach. Organizations that get compromised lose trust and confidence fast. For instance, one study found that 55% of Americans would be unlikely to continue doing business with a company that has been breached.
Negative publicity tends to follow the announcement of a breach. This is exactly what happened in 2013 after Target announced a major data breach. Cybercriminals installed malware on POS systems, compromising a third-party vendor to access customers’ personal and financial information. After the announcement, many people called to boycott Target.
Brand devaluation
Once a company gets hit by a cyberattack, they will be associated with a security breach for quite some time. This connection can diminish the brand’s market value and competitive edge. It’s not easy to recover from this situation.
Lost business opportunities
After a serious cyberattack, other businesses and individuals may reconsider partnerships or terminate relationships if they perceive ongoing security risks.
Increased turnover rates
As employees start to feel negatively about working for a company that doesn’t take security seriously, there’s often an increase in turnover and a decrease in productivity for those who remain.
Operational disruptions
According to IBM’s Cost of Data Breach Report from 2023, it takes an average of 277 days to identify and contain a breach. This means cyberattacks can actively do harm for a year (sometimes more), and can bring operations to a standstill for days or weeks once discovered.
While financial loss is inevitable, downtime can also cause vendors to cancel contracts, and customers will lose trust.
Data loss
Permanent loss of critical data can cripple an organization or cause permanent closure. Unfortunately, 60% of businesses fail within six months of a cyberattack because they aren’t prepared to recover. All the money in the world can’t retrieve data that was encrypted or permanently deleted by cybercriminals. If the lost/deleted files are required to run the business, there’s no recovery.
Legal and regulatory consequences
While regulatory agencies can impose hefty fines for violations, and people sometimes file class action lawsuits following a breach, there’s more at stake than money. Lawsuits gather unwanted, negative attention, and can cause a loss of trust. Regulatory compliance might also require a complete system overhaul, which can take time and resources to complete.
Regulatory agencies might also impose strict constraints on business operations until new security measures are in place and validated.
Intellectual property theft
Proprietary information is sometimes the target of a data breach. This includes original design files and information that can be used to manufacture counterfeit goods or sold to competitors. When a competitor gets ahold of another business’ trade secrets, it can undermine that company’s market position. There’s also a chance that stolen innovations will lose their uniqueness and achieve little to no success.
For companies that keep private lists of clients, stolen lists can be sold to competitors, who will then ‘poach’ the clients by offering them lower prices and better deals.
Cybersecurity is non-negotiable
The cost of a cyberattack extends far beyond monetary losses, affecting your reputation, operations, and legal standing. If you’re not prepared, the impact can be devastating. Since threats are constantly evolving, businesses that want to thrive in 2025 must strengthen their defenses, adopt a proactive security strategy, and be committed to prioritizing cybersecurity.
If you’re unsure where to start, consulting a cybersecurity expert can help you build a security plan that works for your business. Don’t wait until it’s too late. A cyberattack can hit you at any time. Protect your business now.
