EVERY ORGANIZATION IS
VULNERABLE TO THIS LOSS
Could you imagine being liable for $3.6 billion due to a
data breach in your system, releasing your client’s personal information? This
is exactly what Target was facing during their massive data breach in 2014. Although
an example from a larger spectrum, Data Breach is known to even affect the
majority of smaller businesses as well.
In fact, in 2014, one hundred and forty data breach claims
were reviewed and studied, showing that the average cost per breach for a small
company was $664,000. Not only are business owners having to pay for client’s
release of information, but also Legal costs for the defense and settlement, as
well as Crisis service costs to cover forensics, legal counsel, notification of
the breach, and credit monitoring.
One of the newest trends, shown in 2015, was an increase in
“disruptive attacks.” Disruptive attacks are attacks that purposefully draw the
public’s attention to the business. In most cases, these attacks were those
where data is held for ransom; basically stealing personal data, and
threatening to release it if monies were not paid.
As Technology continues to grow, attacker’s knowledge and
techniques grow with it. Breached organizations stay concerned on what data was
stolen, how the attacker was able to breach their system, and how to resolve
the situation. Victim organizations not only stay concerned with the attack and
how it happened, but now face public humiliation, inquiries, and lawsuits.
Potential exposures and threats to keep in mind if you think
you are immune to a breach:
·
Lost or
stolen laptops or cell phones
·
Hacking
·
Software
glitches
·
Improper
disposal of paper records
·
Vendor,
Partner or Employee mistakes
·
Rogue
insiders or contractors
As the trend of Data Breach claims grow, keep in mind that
Insurance companies that offer Cyber Liability policies, generally have
different tiers that can be purchased to be customized by each organization’s
exposure, need, and premium target. The cost of a broad range policy is
typically trivial compared to the exposure and overall cost of a Data Breach.
