The Hidden Costs of Poor Cybersecurity for Online Companies

For many online business owners, it can seem like an additional hassle to have to update their business websites’ online security.

When looking at online companies in 2025, there are more threats than ever before, especially as many hackers are now utilising AI software to get access to passwords and online account information.

Of course, if your company does have poor cybersecurity, then it could be doing more harm to your website and sales than just causing the odd glitch or slow loading time.

Reputational Damage

Even if you have a single data breach or leak, this can cause erosion of customer trust for years. According to Brian Lim, CEO of iHeartRaves & INTO THE AM, there has been research into customer attrition after a breach, and it was discovered that as many as 60% of customers will stop shopping at a company that has had a breach. This can cause long-term reputational damage.

Rather than go down that path, why not opt for top-notch cybersecurity from the get-go by having a site audit performed by a team like Red Canary? They offer a range of security services that suit every business’s needs.

Operational Downtime

Ransomware attacks can stop normal business operations for days or, in some cases, weeks, until all of the code and phishing software is removed and the online accounts are running correctly again. This can cause lost revenue and missed sales opportunities, which can cost your company between 8 and $10,000 per minute.

Legal Fallout

If you have a data breach or leak due to having inadequate cybersecurity, there will likely be immediate fines under laws like the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). After this, there may also be long-term legal costs from audits, compliance reviews, and even class-action lawsuits. These can cost your business a lot of money years after the breach.

Insurance and Lending Backlash

In 2025, if you have an online business without cyber insurance, you are playing with fire. If you have cyber insurance and there is a hack, your insurance premiums will usually go up, which can be costly. Also, if your company has insurers, a cyber hack due to poor cyber protections may lead to less investment, as your company will be seen as a higher risk. This also applies to getting business finance or lending options.

Poor Staff Retention

Poor cybersecurity often equates to multiple issues in cyber crises, and this can cause overwhelm among your staff or IT teams. This can lead to burnout or high turnover among your staff, which can lead to spending a fortune on hiring or training replacements.

Of course, your staff should be somewhat prepared to help out in the event of a cyber hacking incident, but if it keeps happening, it could also be putting their personal details at risk. So, don’t take the chance and get the systems with their information and your customers protected!

Remember, bad cybersecurity can do more to your company than just expose it to leaks or hacks. So, you need to invest in the best cybersecurity option you can afford to keep your business and your customers’ information safe.