Data breach…… how safe is your data?
This is a subject worthy of being re-visited, in a different light. Just how common is a data breach? More frequent than one would like to consider.
Data is the life blood of every business. Closely guarded, under lock and key, in a vault, secured by armed guards and snarling bloodthirsty dogs. Or is it?
Galveston man gets prison for hacking Texas DPS……. Ordered to pay $14,000 in restitution and sentenced to 2 years in prison. Also hacked into computers operated by West Virginia Chiefs of Police Association, Alabama DPS, and Houston County Alabama.
Hacking, or accessing a computer system by circumventing its security system is big business. Analysts put the annual loss to credit card and consumers in the billions due to hacked or unsecured computer systems, credit card fraud, pshing.
But what about the cost to businesses when they lose their confidential data? More importantly, what was contained in that data? Client lists, sales and marketing strategies, financial information, accounting data, employee files, personnel data, including social security numbers, drivers license numbers, spousal information, every possible piece of information needed by someone to wreck havoc on someones life by credit fraud. If that data is stored on your company’s computer system, you have an absolute and undeniable legal obligation to secure that data. And, if that data ends up in the wrong hands, your company could be hit with a very heavy lawsuit. Employees, clients, vendors, anyone whose information has been compromised due to a data breach, will be looking for restitution and punitive damages.
Data breaches occur on a daily basis, and in most cases, the computers get infected and thus begins a steady stream of outgoing data which sometimes goes unnoticed for years. All the while, your sacred data is being copied to remote servers and gleaned for valuable nuggets.
The FBI is currently working on over 2000 active cyber cases. The SEC has also issued guidlines which outline how companies should report hacking incidents and cybersercurity risks and breaches. The US Office of Management and Budget said in March 2012 that a total of 107,655 security incidences were reported in 2011 by Federal, State, and Local Governments. Corporate reporting guidelines are voluntary, but estimates peg that score at well over three times the Government listings in 2011.
When was the last time you read your General Liability policy? Do you have protection against data breach and cyber liability? Odds are probably not. Do you have a plan to protect against data breach? Is your information encrypted? Do you have a company policy for USB and flash drives?
When was the last time an outside security consultant did a review of your internal network, backups, firewalls, intrusion monitoring & detection, network logs, to name just a few parameters?
Call today for a no obligation quote for cyber and data breach liability. It’s not just for retailers or banks anymore. This is a coverage almost every business needs to have. Remember, insurance is a means to protect your business. Most companies will be bankrupt footing the bill for legal defense, long before the settlement phase is reached.
Call 281-930-1600 for a quote.