Protect Sensitive Information Against Data Breaches
{Sponsored} The average total cost of a data breach for a company in 2016 was estimated at $4 million, according to a survey conducted by Ponemon Institute. This figure includes direct and indirect expenses related to investigating and resolving breaches. Is this a cost your business can afford?
Breached sensitive information, such as names, credit cards and personally identifying information, can expose clients and employees to risks. Beyond any financial losses, a security breach also could lead to loss of consumer trust.
The Federal Trade Commission recommends businesses develop a data security plan based on five key principles: take stock, scale down, lock it, pitch it and plan ahead.
Take inventory of the data your business collects, where it is stored and who on staff has access to it. Knowing how information flows through your business will help you identify any potential risks. Ponemon Institute found the average global cost per record breached in 2016 was $158. Records to keep in mind as you set up data security measures include accounting and bookkeeping, corporate information, contracts, and tax and payroll. Sensitive customer information, such as credit card numbers, should only be kept on file if there is a business need for it. Reduce security risks by only keeping information that is essential for you to do business.
Protect data files with a system that works best for the storage methods you use. Consider performing a full-scale security audit to identify any vulnerability in your network. All internet-enabled devices should be equipped with anti-malware to block malicious software that may be used to access data. Install firewall software or hardware to protect computers and electronic devices from being hacked.
Encryption and email authentication can help ensure only the intended recipients can view files shared through the Internet. Authentication can also keep customers from falling for phishing scams, where hackers mimic a business to trick customers into providing personal information.
Critical files and records containing personally identifying information will require extra security measures. Thieves may target these files to commit fraud, identity theft and other similar acts. Laws may also be in place requiring businesses to provide reasonable security for sensitive information and inform customers of how it is protected.
About half of the data breaches in 2016 were caused by malicious or criminal attacks, according to Ponemon Institute. The remaining incidents were caused by negligence, IT errors and process failures. Conduct trainings to educate employees on best practices for keeping data secure. All passwords should be changed often.
Use strong passwords with a combination of letters, numbers and symbols. They should never be shared via email or other online communications. Teach employees how to recognize security threats. Data security is a team effort and the more your staff is informed, the more likely they are to report suspicious activity.
Implementing multiple protection measures and establishing best practices can minimize risk. However, never underestimate the likelihood of a data breach. Be proactive and work with your IT department, staff and service provider to develop a response plan.
Reacting quickly to a data breach or hacking can reduce the impact on your business. Depending on the information compromised, you may be required to notify affected employees and customers, law enforcement, credit bureaus and more. Research your state’s data breach notification law to determine the appropriate parties that must be contacted and what information must be provided to them.
Additional privacy and security tips are available at www.ftc.gov/startwithsecurity. Contact a Hortica® agent or visit www.hortica.com for more on data security.
Hortica® property and casualty coverages are underwritten, and loss control services are provided, by Florists’ Mutual Insurance Company and Florists’ Insurance Company, members of the Sentry Insurance Group. For more information, visit hortica.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. This document is of a general nature and is not intended to address the circumstances of any particular individual or entity. No one should act on the information contained in this document without advice from a local professional with relevant expertise.
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