Key Takeaways
- Early detection and rapid containment can reduce downtime, limit losses, and improve recovery outcomes following a cyberattack.
- Effective response requires coordinated leadership across technology, operations, legal, communications, and risk management teams.
- Long-term cyber resilience depends on strong governance, employee awareness, incident preparedness, and continuous security improvement.
Cyberattacks are a constant threat to businesses of all sizes, with incidents rising 18% year-over-year. They disrupt operations, reduce revenue, damage customer trust, and increase regulatory risk. The speed and effectiveness of your response are critical to minimizing impact.
Signs You've Been Hacked
Detecting a data breach early is crucial to minimizing the damage it can cause.
Warning signs that could indicate your business has been hacked include:
- Unusual login activity.
- Locked accounts or receiving password reset emails you didn’t initiate.
- Strange email messages.
- Rogue software installations.
- Computers or systems are running slower than usual, freezing, or crashing.
More serious indicators of an incident include unusual network traffic patterns, a surge in requests for the same file, geographical irregularities, and unauthorized database extractions.
While attack methods evolve, human error remains the primary vulnerability. A recent Resilience survey found that 85% of losses are linked to employee mistakes, up from 17% in 2024. Employee education and proactive security measures, including system monitoring and network traffic detection, are essential for cybersecurity.
What Happens When a Company Gets Hacked?
A cybersecurity incident can have a devastating impact on a business, affecting multiple areas of operations.
These include:
Operational disruption
A major consequence of a data breach is unplanned downtime, which can halt operations. Extended downtime increases costs. In some cases, cybercriminals intentionally disrupt operations to demand ransom.
Revenue interruption
A data breach can result in significant financial losses, both immediate expenses for recovery and remediation and long-term costs from lost business opportunities and legal liabilities.
Customer trust
Customer trust is essential in today’s connected environment. Beyond immediate costs, breaches can erode confidence, delay sales, and harm long-term brand reputation. One study found that 64% of customers would trust brands more if they adopted advanced security technologies.
Regulatory reporting
Depending on the industry and location, businesses may be subject to various data protection regulations and compliance requirements. A data breach can result in non-compliance penalties and regulatory fines.
Immediate Action Steps for Operational Leaders
No organization can fully eliminate cyber risk. The key difference between a manageable incident and a crisis is how quickly the threat is contained and how well leaders coordinate the response.
1. Know Who Owns the Response
Effective planning ensures a clear response when incidents occur. However, many organizations discover during a crisis that responsibility for coordination is unclear.
An IBM report found that incident response planning and testing can reduce average data breach costs by $1.5 million. An incident response team serves as your first line of defense during a security breach.
Include roles from:
- Executive leadership
- IT/Security
- Legal
- HR
- Communication/Marketing
- External cybersecurity professionals
- Insurance providers
2. Assess the Impact
Determine the nature of the attack, including:
- Identifying the type of cyberattack (e.g., ransomware, phishing).
- Ascertaining which data and systems were affected.
- Evaluating the potential impact on operations and stakeholders.
Next, create a comprehensive recovery plan to restore systems, data, and operations. Address all identified vulnerabilities to prevent future breaches.
3. Notify Relevant Parties
Compliance with legal and regulatory requirements is non-negotiable. This may include:
- Reporting the incident to appropriate authorities, like the FBI's Internet Crime Complaint Center (IC3).
- Informing affected customers, partners, and employees as necessary.
- Consulting legal counsel to navigate disclosure obligations.
4. Begin Recovery and Remediation
Work towards restoring normal operations, including:
- Removing malware and secure vulnerabilities.
- Restoring data from clean backups.
- Monitoring systems for any signs of lingering threats.
- Review cyber insurance requirements, including notification deadlines, required forensic investigations, coverage limitations, and documentation expectations.
After these steps, continue to monitor gaps, track timelines, and communicate with affected parties.
How Quickly Can You Continue Operating?
Cyberattacks and other threats are inevitable. The level of your preparedness will determine how quickly you can resume operations.
To begin, ask yourself the following questions:
- What systems are essential to revenue-generating operations?
- Which vendors need notification?
- What customer-facing services must be restored?
- Can you resolve corrupted data?
- How long will it take to restore critical workflows?
Your answers to these questions will clarify your organization’s readiness to restore operations.
After an incident, take proactive steps to strengthen your organization's defenses:
- Review and Update Security Policies: Ensure protocols are up-to-date and comprehensive.
- Conduct Employee Training: Educate staff on how to recognize and respond to cyber threats.
- Implement Advanced Security Tools: Utilize intrusion detection systems and endpoint protection.
- Regularly Test Incident Response Plans: Conduct drills to assess readiness and identify areas for improvement.
Emerging Cyber Risks Leaders Should Watch
Cyber threats continue to evolve as attackers adopt new technologies, techniques, and targets.
AI-enabled Attacks
CrowdStrike reports an 89% increase in attacks by AI-enabled adversaries. As AI agents become more common, technology and security leaders need a targeted, risk-based approach that focuses on the greatest gaps and uses automation and integration where they can strengthen protection. This helps organizations support innovation, maintain compliance, and protect critical assets in AI-driven environments.
Deepfake impersonation attempts
Cyber criminals are using highly convincing identity fabrications. In a professional setting, this applies to business email compromise, where counterfeit voices and audio can mimic professionals and exploit vulnerabilities. The ITRC’s mid-2026 report cited over 1,800 data compromises in the first quarter of 2026 alone.
IoT and other connected devices
The growth of interconnected devices creates new entry points for attackers. A Fortinet study found that half of operational technology organizations experienced cyber breaches. Industries such as manufacturing are especially vulnerable due to numerous interconnected and exposed networks. It is essential to secure both networks and every embedded device.
Supply chain and vendor vulnerability
Even with strong internal defenses, reviewing your vendors’ security practices is essential. Attackers often target third-party vendors or open-source software. According to IBM, major supply chain and third-party breaches have quadrupled, largely due to the complexity of modern software dependencies and cloud-based services.
Build Long-Term Cyber Resilience
Cybersecurity extends beyond IT departments. Leading organizations integrate cybersecurity into their core values, promoting a proactive approach to emerging threats.
- Executive Leadership: Drive cybersecurity initiatives from the top to ensure alignment with business objectives.
- Employee Engagement: Promote awareness and responsibility across all levels of the organization.
- Continuous Improvement: Regularly assess and update security protocols to adapt to evolving threats.
Organizations that recover most effectively from cyberattacks are those that prepare in advance. Combining strong cybersecurity practices, tested response plans, and operational resilience strategies reduces disruption and supports confident recovery.
Let us help you protect what you’ve built.
Frequently Asked Questions
How can an organization tell if it has been hacked?
Common signs of a cyberattack include unusual system behavior, unauthorized access attempts, unexpected password resets, abnormal network activity, locked files, and unexplained system slowdowns or crashes. Early detection can help reduce business disruption and recovery costs.
What is the first thing a business should do after a cyberattack?
The first priority is containment. Isolate affected systems, preserve evidence, activate your incident response team, and begin assessing the scope and impact of the incident. Acting quickly can help prevent additional damage and speed recovery.
What happens when a business gets hacked?
A cyberattack can disrupt operations, interrupt revenue, expose sensitive data, damage customer trust, and trigger regulatory reporting requirements. The impact depends on the nature of the attack, how quickly it is detected, and the effectiveness of the organization's response.
How do cyberattacks affect day-to-day business operations?
Cyber incidents can disable critical systems, delay transactions, impact customer service, disrupt supply chains, and force employees to rely on manual processes. In severe cases, organizations may experience extended downtime and significant productivity losses.
Who should be involved when responding to a cyberattack?
An effective response typically involves executive leadership, IT and security teams, legal counsel, human resources, communications professionals, cyber insurance providers, and external cybersecurity specialists. Coordinated decision-making is critical during a crisis.
What should a business do in the first 24 hours after a cyberattack?
In the first 24 hours, organizations should isolate affected systems, activate their incident response team, preserve evidence, assess the scope of the attack, notify key stakeholders, and begin planning recovery efforts. Acting quickly can help reduce operational disruption and prevent additional damage.
Who do I need to notify after a data breach?
Notification requirements vary based on the type of information exposed, industry regulations, and applicable state or federal laws. Organizations may need to notify customers, employees, business partners, law enforcement, regulators, insurers, and legal counsel. Consult experienced advisors to understand your obligations.
Does cyber insurance cover cyberattacks?
Many cyber insurance policies provide coverage for breach response, forensic investigations, legal costs, business interruption, regulatory expenses, and ransomware events. However, coverage varies significantly by policy, making it important to understand notification requirements and coverage limitations before an incident occurs.
How long does it take to recover from a cyberattack?
Recovery timelines vary depending on the scope of the attack, the systems affected, the quality of backups, and the organization's preparedness. Some incidents can be resolved in days, while others may require weeks or months to fully restore operations and strengthen security controls.
Can a business fully recover after being hacked?
Yes. Many organizations successfully recover from cyberattacks, particularly when they have strong backups, tested incident response plans, experienced advisors, and clear recovery priorities. In many cases, an incident becomes a catalyst for stronger security, governance, and business resilience.
How can organizations reduce the risk of future cyberattacks?
Organizations can reduce cyber risk through employee training, multi-factor authentication, continuous monitoring, regular risk assessments, incident response testing, vendor risk management, and modern security controls. Building cyber resilience requires ongoing improvement rather than a one-time project.
What is cyber resilience?
Cyber resilience is an organization's ability to anticipate, withstand, recover from, and adapt to cyber incidents while maintaining critical business operations. It combines cybersecurity, business continuity, governance, and incident response into a coordinated strategy that helps organizations continue operating during disruption.

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Who We Are
Eide Bailly is a nationally ranked accounting and advisory firm bringing financial, operational, and technical solutions to middle market and high-growth organizations.

