The True Costs of Corporate Spying

More than 800 data breaches have been reported in the United States since 2022, with an average cost of about $4.5 million. And while most people associate data theft with cyber criminals, in many cases such theft may stem from the actions of a competing business or similar entity to gain insights, trade secrets and more.

But corporate espionage has the potential to be much more far-reaching than just the firms involved in the act. In this post, we’ll take a closer look at the cost of corporate spying and solutions to safeguard your firm from becoming a victim of data theft. Read on to learn more:

The True Costs of Corporate Spying

From short and long-term financial costs to the potential for corporate spying to become an international issue and damage foreign relations with other nations, the effects of corporate spying can be far-reaching.

Financial Costs

Whenever competitors profit off swiped trade secrets, intellectual property, research and development data or other confidential information, the victimized business is going to pay some sort of financial toll. These costs can be extensive and hurt a firm’s bottom line – not to mention secondary costs from the public relations and customer service blitz that is often necessary in the days and weeks following a breach to repair relationships with customers, partners and, in some cases, the public.

Trust Issues

Aside from the financial impact that corporate espionage often results in, there’s also a public perception battle that many firms must fight to repair as well. When a firm is the victim of data theft, they’re also often viewed unfavorably by partners, customers and those impacted by the act. It often results in implementing a crisis communications strategy to restore trust in key stakeholders.

Stagnant Innovation

When intellectual property and confidential research and development are compromised, there can be a major hesitation for a firm to continue to invest heavily in such practices. This can lead to less collaboration and more secrecy, which can impede progress.

Legal Issues

Lawsuits, and more lawsuits. Whether your firm was the one who acted in data theft or the victim of it, you could still be left open to lawsuits and regulatory violations depending on the nature of the act. Such lawsuits can be expensive and have the potential to drain key resources that could be allocated elsewhere. Lawsuits may also draw unwanted media attention, which can continue to recirculate the incident in the press.

Economic Problems

If you don’t think acts of corporate espionage can impact the overall economy, you need to think again. With so many industries today thriving on healthy and fair competition, one breach can increase tension and stall future progress. In return, it can have an impact on the quality of the product or service and lead to trust issues with customers.

Foreign Relations Problems

Corporate espionage can also strain foreign relations, and governments may need to act as a result of any sort of unethical or illegal activity.

Cybersecurity Costs

Finally, there are long-term cybersecurity costs that a firm will have to front to ensure that such an act does not occur again. These costs can be extensive and force businesses to adjust their budgets, which may take funds away from those needed to streamline innovation or some other essential business act.

Solutions to Prevent Becoming a Victim of Corporate Espionage

What can you do to ensure protection from corporate spying? It all starts with securing your facility – and not just from physical threats, but from digital theft as well. Signals Defense offers solutions such as RF shielding window films and foils that help keep an office’s RF signals contained within a given space. Aside from containing RF signals, window films also offer blast detection and prevent solar glare.

As industries become more interconnected, the risk of corporate espionage and corporate spying has become more common – and the result of such actions can have far-reaching consequences. Contact Signals Defense for more information and how you can safeguard your firm from data theft today.