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Startups at risk for data breaches

The high cost of cybercrime has become very apparent and well documented. The Ponemon Institute's analysis of the economic impact of data breaches concluded that the average cost per organization was $8.9 million per year. Many people consider the danger of cybercrime in terms of direct financial losses such as stolen bank accounts. However, cybercrime can be extremely detrimental in other ways. For instance, data breaches can adversely effect consumer confidence with a business and result in higher customer churn rates. Another major concern for businesses, particularly startups, is the threat of intellectual property theft.

The New York Times reported that many hackers are targeting technology startups with little to offer in the way of financial assets. Instead of stealing account numbers or personal identification information, data thieves are looking to acquire intellectual property. In essence, cybercriminals want to to steal the very resources that give these businesses the potential for success. By acquiring a company's software code, data thieves can create pirated versions to sell at discounted rates. It will be extremely difficult for startups to grow and expand their business when their main service or product can be had at a much lower price.

In order to protect their assets, startup investors should ensure that the company's IT staff have taken proper steps to secure information, according to the New York Times. These include allotting suitable resources and manpower for establishing a strong cyberdefense and having additional protocols to protect information in the event of a network breach. Encryption can be used to add a layer of security between cybercriminals and sensitive data such as intellectual property.

Cybercriminals target large and small companies alike and look to profit from any information they can get their hands on. Encrypt valuable data by getting an SSL certificate today.

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