Decreased Customer Trust
When customers learn their personal information was compromised, the likely outcome is a loss of trust in the business. After a data harvesting attack, rebuilding this trust can be a long and costly process.
Depending on the breach’s severity, the consequences can be short- or long-term, including broken customer loyalty, decreases in sales, and public damage to the brand reputation.
Lawsuits and Regulatory Penalties
In the event of fraudulent data scraping, businesses may face legal action from customers, partners, or regulatory bodies.
High legal fees, settlements, and fines can financially debilitate a company. Plus, failing to comply with data protection regulations (ex. GDPR, CCPA, or HIPAA) can result in severe penalties.
Lawsuits and Regulatory Penalties
In the event of fraudulent data scraping, businesses may face legal action from customers, partners, or regulatory bodies.
High legal fees, settlements, and fines can financially debilitate a company. Plus, failing to comply with data protection regulations (ex. GDPR, CCPA, or HIPAA) can result in severe penalties.
Exposure of Confidential Information
Additional safety and business concerns arise when fraudsters opt to leak harvested data. Any exposure of sensitive information—such as customer details, strategic plans, or product designs—can harm both the affected individuals and the company’s credibility and operations.
For instance, if internal documents are publicly leaked, or a competitor’s website is scraped, malicious actors could use this data to copy a business’s products, undercut pricing, or otherwise harm their competitive edge. These actions could result in additional revenue loss, as well as a weakened market position.
Wasted Infrastructure Spend
After a data harvesting attack occurs, businesses are forced to invest heavily in new security to safeguard their data and prevent future breaches. These hefty, unexpected costs can cause financial strain and divert resources from other critical business areas.
While investing in preventative measures may have blocked this breach, the company budget is now spread thinner to accommodate post-disaster cybersecurity tools, IT infrastructure, and staff training.
Fraudulently Copied Websites
Using the harvested data, fraudsters can create duplicate websites that mimic legitimate e-commerce sites to deceive customers. Users will unknowingly put themselves at risk by providing their log-in credentials and financial information to these imposter sites.
This type of phishing attack can further damage a business’s reputation and cause a ripple effect leading to more data theft after the initial breach.
Skewed Web Analytics
Data-harvesting bots often generate a large amount of fake traffic and distort web analytics with their flurry of online activity. By believing this traffic is generated by real users, businesses may make poor strategic decisions as a result.
Working from inaccurate data can lead to ineffective marketing campaigns, misguided product development, and incorrect customer insights.