Often times it’s not the fact that your business has been hacked that will lose your customers’ confidence, but the way your company responds.
When a company suffers an attack (presuming it notices at all), it can take several courses of action.
1. Pretend it never happened. Don’t tell your customers, and hope no-one ever finds out.
It’s tempting to try to sweep the incident under the carpet, especially if you believe that sensitive customer data may not have been exposed.
But this approach is going to be disastrous for your reputation if the truth eventually leaks out, or it is later determined that the hack was more serious than you initially thought. Not to mention that the authorities may take a dim view if you didn’t report an incident which could have put customer’s private information at risk.