How Do Data Breaches Affect Companies?
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Data breaches can have a variety of negative impacts on companies. They can lead to direct financial losses through the cost of remediating the breach, fines from regulators, and class–action lawsuits. Companies may also experience reputational damage from the loss of customer trust, as well as the potential for lost business opportunities due to the breach. In addition, companies may face increased scrutiny from customers, partners, investors, and regulators in the wake of a data breach, meaning that more resources need to be devoted to security.