Data breach is the exposure of sensitive customer information due to hacking, theft or the accidental release of data. Business owners are expected to be custodians of customer information and have a reasonable expectation to protect their customers’ data. A privacy breach is impactful for all businesses, but it can be devastating for a small business without the resources of a larger corporation. In this four-part blog series, we share the top three data breach myths, eight tips to prevent data breach, how to react to a data breach, and how to protect your business from costly data breach damage.
For 20 days in late 2013, Target Corporation experienced one of the largest data breaches in American history. Hacked information included some 70 million customer names and 40 million credit and debit card numbers including the short verification codes on the back of compromised cards. In addition to forcing the retail giant to book a reported $61 million in direct costs related to the breach, it also scared customers away from shopping at their stores – which resulted in a 46% drop in net profit during the holiday quarter. Although the exact full costs of the breach are not yet known, security analysts have pegged the costs at upwards of $400 million.
A data breach can be even more impactful for a small business and cause irreparable harm to your company’s reputation. The cost of even a small breach can be wildly expensive. Typical costs can include: (more…)