Cybercrime and data breaches are now a major cause of loss for all businesses; ahead of accounting fraud, bribery, corruption, and even money laundering. A multitude of regulations makes it pivotal to have the right processes, appropriate systems, and controls in place to deal with these issues.
From retailers, banks, accountants, contractors, distributors, restaurants, and medical offices, many businesses are unaware of the great security technology exposure they face as computers become connected in many new and different ways. Businesses of all kinds must increase their awareness of how cyber risk and data breaches can impact both their clients and themselves.
Recent state and federal laws require companies that have experienced a security breach to notify all customers that could be affected by the breach that their information has been compromised, even if the information hasn’t been used. In most cases, the notification also requires an option of one-year credit monitoring services and a new card or account number for the customer. This can cost the business as much as $250 per individual for each breach.
Data Breach Prevention Tips
It is important to minimize the potential for an expensive as well as an embarrassing data breach. Follow these tips to do so for your business:
- Educate employees about appropriate handling and protection of sensitive data.
- Limit personal use of company computers.
- Secure your Wi-Fi networks.
- Make sure you have the latest security protection installed and current security software updates (or patches) on all devices.
- Reduce the number of places where you retain data through the implementation of a secure data-storage program.
- Control the physical access to your computers and create user accounts for each employee.
- Restrict information that is stored on laptops.
- Develop procedures for maintaining client information in a secure environment.
- Create a breach response plan including communications with both employees and clients.
- Consider Cyber Liability Insurance as part of your breach response plan.
- Make backup copies of important business data and information.
In Conclusion
Most business insurance policies do not cover computer fraud by a third party. They also do not cover the liability arising out of a cyber-attack. The good news is that solutions are available! Cyber Liability Insurance can be added to your program. This will cover the costs associated with customer notification as well as recovery of hacked data. If you store data, use email, generate revenue online, or use your computer to control production, manufacturing, or inventory, your company is at risk!
In short, any business not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy law. Let our team advise your business on how to protect your information. We can help minimize your risk for a serious data breach.
LUXA Enterprises specializes in HR services, outsource accounting, bookkeeping, and payroll services. We match up with ideal candidates for services by allowing small to midsize businesses to increase focus on their growth through outsourcing. If you want to know how we can help you, contact us today!