Small Businesses Fail to Notify Customers of Data Breach

EditorBusiness Insurance, Uncategorized

Small Businesses Fail to Notify Customers of Data BreachSmall Businesses Fail to Notify Customers of Data Breach

With the added convenience of online tools, going paperless also adds new risks for businesses. Data breaches are growing more and more common as companies take their operations virtual. According to Verizon Wireless’s 2012 Data Breach Investigations Report in 2012 there were 855 recorded incidents, totaling 174 million compromised records.

Over 80 percent of breaches utilized some form of hacking. Use of incorporated malware followed at just under 70 percent. Breaches also span across all industries including Accommodation & Food Services, Retail, Finance, Insurance, healthcare, and information.
It isn’t just high profile companies either. Cyber criminals are streamlining their method to include high-volume, low risk attacks against weaker targets. Cyber criminals are opportunists- they will infiltrate a company with little or low protections, such as small businesses who haven’t yet taken the time to assess their security and/or don’t have the large resources of a corporation to delegate the task.

  • 79% of victims were targets of opportunity.
  • 96% of attacks were not highly difficult.
  • And, on the detection side:
  • 85% of breaches took weeks or more to discover
  • 97% of breaches were avoidable through simple or intermediate controls.  

There are several steps small businesses can focus their mitigation efforts. Business owners should Implement a firewall or ACL on remote access services and change default credentials of POS systems and other Internet-facing devices. If a third party vendor is handling those items follow through and make sure they’ve taken the necessary precautionary measures. Whenever possible, eliminate unnecessary data and check your security status regularly to ensure there are no gaps.

Our goal is to help mitigate losses in the first place to protect the value you’ve created in your business – whether you’re a large construction company, multinational food processor, a local enterprise or a Connecticut manufacturing plant. As your advisor, we’ll make a tangible difference to your business by providing you with a better understanding of the exposures and liabilities that exist in your daily operations and implementing programs to safeguard against them, minimize losses, reduce claims, and ultimately provide significant opportunities for savings. Contact us today for more information about our Connecticut Business Insurance – (877) 602-2305