How a very public cyber attack can deal long-term reputational damage

New research has highlighted how a cyber attack can cause seemingly irreparable damage to a company’s reputation.

Almost one in three businesses (31 per cent) would tear up contracts with suppliers whose negligence caused them to become a victim of cyber crime, the survey suggests.

Research from connectivity experts Beaming found that one in five (17 per cent) would take legal action to recover financial losses incurred from a breach as a result of a supplier’s negligence.

Meanwhile, a similar number (20 per cent) would use the incident to negotiate a further discount. Just three per cent of the businesses questioned said they would take no action.

Victims of cyber crime could experience problems replacing these disgruntled customers, the research went on to suggest.

More than a third (35 per cent) said they wouldn’t work with a supplier they thought would make them more vulnerable to cyber crime. Similarly, a quarter (27 per cent) would avoid using a company that had been publicly associated with a major cyber security breach.

Sonia Blizzard, managing director of Beaming, said the survey’s findings suggest that business leaders see cyber security as a shared responsibility.

“For businesses, the consideration of risk must extend beyond their own boundaries to incorporate customers, partners and other organisations they come into contact with,” she commented.

“Rather than simply guarding what’s ours, we need a cyber security culture that means we all look out for those we do business with too.”

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