Data Breach – Is Your Business Too Small to be a Target?

February 24, 2016

Is Your Business Too Small to be a Target? (pun intended!)

Data breaches come in many forms and most small businesses believe they are too small to be hacked. A recent study by Symantec, an internet security firm, found that three out of five cyber-attacks targeted small and mid-sized businesses. Not only are more small businesses being attacked, they are typically more vulnerable than large businesses due to limited budget and staff which can compromise the proper securities.

What Can Go Wrong?

While a cyber-attack can take many forms, here are some of the common occurrences:

Unauthorized Access – Hackers gain access to your data and steal that information.
Theft or Loss of Digital Items – Laptops, thumb-drives and other digital devices that contain sensitive data are lost or stolen.
Human Error – Employees mistakenly distributes sensitive data to the wrong recipient via mail or email. Improper disposal of data. Or, a disgruntled employee may intentionally expose data to cause harm to the business.

What is the Cost of a Breach?

The average cost of a data breach is $204 per lost record. When a breach occurs you are subject to notification requirements not to mention the loss of customers and your businesses reputation. There are very few businesses that can conduct business without personal data from the customer…..maybe a street vendor who accepts cash only? Personal data are items such as: name, date of birth, social security number, medical records, education records, financial information including bank & credit card numbers and employment information. When businesses stop and think of how many records they have the number can be frightening.

Manage Your Risk

Responding to a breach can be complicated and costly. We recommend businesses work with an insurance agent who is experienced in guiding businesses through assessing the risk as well as offering the resources to implement a strategic breach response plan. Give us a call at Knapp Tedesco Insurance today at 515-232-7060 if you are interested in managing your data breach risk!