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Every Leader Should Know About These 5 Risks Associated With Disinformation Here's what CEOs need to know about the rising threat of disinformation — and how to protect their business.

By Dave DeWalt Edited by Micah Zimmerman

Key Takeaways

  • We can fight disinformation, but it requires a proactive mindset and employee training on these risks and how to properly identify signs of disinformation
  • With social media's popularity 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 disinformation in any of these areas

Opinions expressed by Entrepreneur contributors are their own.

Every time we navigate the Internet or our daily lives, we are faced with an important question: What is true, and what is not? Given the rise of disinformation 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 over social media, it also inevitably finds a home on numerous other digital channels. (Note that the intent makes this different from misinformation, which is incorrect or misleading information but not necessarily with malicious intent).

The World Economic Forum named disinformation one of the top global risks in 2024. The group's Global Risks Report cited the "nexus between falsified information and societal unrest will take center stage amid elections in several major economies that are set to take place in the next two years." These threats are growing at a significant pace and don't seem to be slowing down.

Related: How to Combat Misinformation as a Small Business Owner

For business leaders, this risk is especially important as they evaluate how their brand is being perceived online as well as the future of its financial, legal, and operational success. Businesses are seeing their brands impacted through the spread of negative information or experiencing fraud to the tune of millions of dollars as the result 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 the impact of and will deal with disinformation and its implications.

Here are five ways businesses can be harmed by disinformation that CEOs and other business leaders need to be aware of:

1. Financial risk

Publicly traded companies in the US lose about $39 billion annually due to disinformation-related stock market losses. Globally, that number expands to $78 billion globally lost each year. For example, in May 2023, a deepfake of an explosion in the Pentagon spread on X (formerly Twitter). Minutes later, the stock market plummeted by half a trillion dollars. CEOs must be aware of how their organization is perceived and if disinformation impacts stock prices or other financial indicators.

2. Reputational damage

Disinformation can spread negative rumors or false information that can harm a business or individual's reputation. Organizations with as few as four negative articles can experience losses of up to 70% of prospective customers. It's crucial for CEOs to be aware of and monitor not only their organization's brand but also their personal brand, as many tie sentiment toward company management.

Related: Here Are 3 Ways to Protect Your Business From Deepfake Threats

3. Operational disruption risk

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

Related: 'What, Like It's Hard?': This Brand-Builder Uses a Marketing Secret to Increase Voter Turnout. It's Working for 2 Million People — and Counting.

4. Cybersecurity risk

Disinformation through phishing and CEO fraud are other risk areas in which a highly trained deep fake can impersonate an organization's top leaders. For example, a British energy provider CEO transferred €220,000 to a scammer who had digitally mimicked the head of his parent company. As a business leader, it's crucial to train staff on the dangers of phishing, especially as it pertains to disinformation.

5. Legal and regulatory risk

Disinformation campaigns can 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) charged numerous hedge funds for shorting firms and spreading disinformation about them. What legal risks does your line of business present? Be aware of these to understand what the legal implications of disinformation could 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 signs of disinformation. Being aware of potential areas within your organization that may be tainted by disinformation and taking proactive steps to safeguard them before you're hit with disinformation is crucial to longstanding reputational and financial success.

Additionally, visibility and constant monitoring for disinformation occurring over social media or other channels is critical to acting quickly. With social media's popularity 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 disinformation in any of these areas.

Dave DeWalt

Entrepreneur Leadership Network® Contributor

Founder and CEO

Dave DeWalt is Founder & CEO of NightDragon. Former CEO of FireEye and McAfee, he is a veteran leader, advisor and investor.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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