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Every time we navigate the Internet or in our day by day lives, we are faced with an necessary query: what is true and what is not? Given the rise of disinformation and its impact on businesses, this is the challenge we face today.
Disinformation is false information intentionally and often covertly spread in order to influence public opinion or obfuscate the truth. While this false information is often spread on social media, it inevitably finds its way onto many other digital channels as well. (Note that intent distinguishes this from disinformation, which is information that is false or misleading but not necessarily malicious in intent.)
World Economic Forum named disinformation is one of the biggest global threats in 2024. The group’s global threats report points out that “the link between fake news and social unrest will take center stage as elections in several major economies take place over the next two years.” These threats are growing at a significant rate and show no signs of slowing down.
For business leaders, this risk is especially necessary as they evaluate how their brand is perceived online, as well as the way forward for its financial, legal and operational success. Spreading negative information or experiencing fraud affects their brands tens of millions of dollars as a results of deepfakes or other malicious tactics. Disinformation does not discriminate based on sector or size. All organizations are vulnerable and all business owners must prioritize how they understand and address the impacts of disinformation and its consequences.
Here are five ways disinformation can harm corporations that CEOs and other business leaders should pay attention to:
1. Financial risk
Companies listed on the US stock exchange lose approx $39 billion per 12 months resulting from stock market losses resulting from disinformation. Globally, this number increases to $78 billion in losses each 12 months. For example, in May 2023 deep fakes about the Pentagon explosion spread on X (formerly Twitter). A few minutes later, the stock market fell by half a trillion dollars. CEOs need to concentrate on how their organization is perceived and whether disinformation is affecting stock prices or other financial metrics.
2. Reputation damage
Misinformation can spread negative rumors or false information that may damage a company’s or individual’s popularity. Organizations with just 4 negative articles could face losses of as much as 70% of potential customers. It is extremely necessary for CEOs to bear in mind and monitor not only their organization’s brand, but also their personal brand, because many of them feel sentimental about company management.
3. Risk of operational disruptions
Disinformation campaigns about an organization’s products, services or operations can disrupt supply chains and partnerships. For example, disinformation about Covid-19 has led to conspiracy theories that 5G is the reason for the disease. This led to arson attacks on telecommunications infrastructure in the UK and other areas. Be aware of potential disruptions to your product or service.
4. Cybersecurity risk
Disinformation through phishing and executive fraud are other risk areas in which a well-trained deep fake can impersonate top leaders of an organization. For example, a British energy supplier The CEO donated €220,000 a fraudster who digitally imitated the head of his parent company. As a business leader, it is critical to coach your staff on the threats of phishing, especially in the context of disinformation.
5. Legal and regulatory risk
Disinformation campaigns might also violate laws and regulations regarding defamation, mental property rights, consumer protection and data privacy. For example, in 2018, the Securities and Exchange Commission (SEC) he collected fees from many hedge funds for closing corporations and spreading disinformation about them. What legal risks does your industry pose? It’s necessary to maintain them in mind to grasp what legal consequences disinformation may have for your organization.
We can fight disinformation, but it requires a proactive mindset and training employees on these threats and accurately identifying the signs of disinformation. Be aware of potential areas in your organization which may be contaminated by disinformation and take proactive steps to guard them before you are a victim of disinformation is crucial to your long-term reputational and financial success.
Additionally, visibility and continuous monitoring of disinformation occurring on social media or other channels is crucial for quick motion. Given the popularity of social media and such a large company presence online, greater awareness could possibly be the difference between misinformation in any of those areas seriously impacting your organization.