Whenever we navigate the Internet or in our daily lives, we are faced with an important question: what is true and what is not? Given the rise of misinformation and its impact on companies, this is the challenge we face today.

Disinformation is false information deliberately, and often covertly, spread to influence public opinion or obscure the truth. While this false information is often spread on social media, it also inevitably finds a home in many other digital channels. (Note that intent makes this different from misinformation, which is inaccurate or misleading information, but not necessarily malicious).

World Economic Forum labeled disinformation one of the top global risks in 2024. The group's Global Risks Report noted “the link between fake information and social unrest will take center stage amid elections in several major economies taking place over the next two years.” THESE threat are growing at a considerable rate and do not appear to be slowing down.

Related: How to fight misinformation as a small business owner

For business leaders, this risk is especially important as they assess how their brand is perceived online, as well as the future of financial, legal and operational success. Businesses are seeing their brands affected through the spread of negative information or experiencing fraud against them many millions of dollars as a result of deep counterfeiting or others malicious tactics. Disinformation does not discriminate based on sector or size. All organizations are vulnerable and all business owners must prioritize how they understand the impact and will deal with misinformation and its implications.

Here are five ways businesses can be harmed by misinformation that CEOs and other business leaders should be aware of:

1. Financial risk

Publicly traded companies in the US lose approx 39 billion dollars a year due to stock market losses linked to misinformation. Globally, this number rises to $78 billion lost globally each year. For example, in May 2023, a deep of an explosion at the Pentagon spread to X (ex-Twitter). A few minutes later, the stock market dropped half a trillion dollars. CEOs need to be aware of how their organization is perceived and whether misinformation affects stock prices or other financial indicators.

2. Damage to reputation

Disinformation can spread negative rumors or false information that can damage the reputation of a business or individual. Organizations with only four negative items can suffer losses of up to 70% of potential customers. It is essential that CEOs are aware of and monitor not only their own the brand of the organization but also their personal brand, as many associate the feeling with company management.

Related: Here are 3 ways to protect your business from deep threats

3. Risk of operational interruption

Disinformation campaigns surrounding an organization's products, services or operations can disrupt supply chains and partnerships. For example, misinformation about COVID-19 led to conspiracy theories that 5G caused the disease. This led to arson against telecoms infrastructure in the UK and elsewhere. Be aware of potential operational disruptions with your product or service.

Related: 'What, like it's hard?': This brand creator uses a marketing secret to increase turnout. It's working for 2 million people — and counting.

4. Cyber ​​Security Risk

Disinformation through phishing and CEO fraud are other areas of risk in which a highly trained deep fake can impersonate an organization's top executives. For example, a British energy provider The CEO transferred €220,000 to an impostor who had digitally impersonated the head of his parent company. As a business leader, it is essential to train staff about the dangers of phishing, especially when it comes to disinformation.

5. Legal and regulatory risk

Disinformation campaigns may also violate laws and regulations related to defamation, intellectual property rights, consumer protection and data privacy. For example, in 2018, the Securities and Exchange Commission (SEC) charge multiple hedge funds for shorting firms and spreading misinformation about them. What legal risks does your line of business pose? Be aware of these to understand what the legal implications of disinformation can do to your organization.

We can fight disinformation, but it requires a proactive mindset and employee training on these risks and how to properly identify the signs of disinformation. Being aware of potential areas within your organization that could be tainted by misinformation and taking proactive steps to protect them BEFORE you've been hit with misinformation is critical to long-term reputational and financial success.

Additionally, visibility and ongoing monitoring for misinformation occurs over time social media or other channels is critical to act quickly. With the popularity of social media and so much of a company's online presence, greater awareness can be the difference in whether or not your organization is severely impacted by misinformation in any of these areas.