Under the Privacy Act 1988, serious or repeated data breaches can lead to penalties of up to:
$2.5 million for individuals, and
The greater of $50 million, 3x the benefit gained, or 30% of adjusted turnover for companies (as updated in the Privacy Legislation Amendment (Enforcement and Other Measures) Act 2022)
Non-compliance can lead to loss of tenders, contracts, and client trust, especially with government agencies or high-trust sectors like finance and healthcare.
Many tenders now require proof of cyber compliance.
Insurance claims may be denied if basic security standards are unmet.
A single breach can lead to clients walking away permanently.
Your brand reputation is valuable yet fragile. A data breach can jeopardize years of trust, especially with exposed customer records or service interruptions.
67% of consumers would cease business with a company after a breach (IBM).
Negative press and backlash can persist long after resolution.
Cyber attacks can cause severe downtime and costly recovery for small businesses.
Systems might be locked or corrupted (e.g., ransomware).
You may face expenses for forensic investigations, legal fees, and public communication.
Long-term costs can include higher insurance premiums, decreased productivity, and staff burnout.