Which of the following is a potential consequence of data breaches due to poor encryption?

The potential consequence of data breaches due to poor encryption primarily involves legal penalties and financial losses. When organizations fail to implement adequate encryption, they expose sensitive data to unauthorized access and potential theft. If customer data is compromised, this can lead to significant legal repercussions, such as fines imposed by regulatory bodies, lawsuits, and costs associated with remedial actions like credit monitoring for affected individuals.

In addition to the immediate legal ramifications, businesses often face long-term financial impacts due to loss of reputation, diminished customer trust, and the costs associated with responding to the breach—such as forensic analysis and public relations efforts. Together, these factors can create substantial financial strain on an organization already affected by the breach.

While other options may sound plausible, such as improvements in security measures over time or potential increases in customer trust, these outcomes are less direct and often not guaranteed in the aftermath of a data breach. Instead, they tend to be secondary effects that may occur only if a company can effectively recover and demonstrate its commitment to strengthening its security posture post-incident.