With the sensitive nature of the data that is stored both online and offline, there are many myths around how secure our information really is. Many are unaware of how a data breach can affect their business and personal lives.
Here we discuss 5 myths around data breach and the reality of the situation.
1. Myth - Data thieves only go after big, well-known companies; we are too small to be at risk.
Truth - Most breaches go unreported. The Ponemon Institute conducted a study of companies of all sizes and found 51% of surveyed companies experienced cyber attacks daily, if not hourly. In October 2009, a hacker gained access to the network of a small pub and redirected payment information to his computer instead of the credit card processing company. The hacker has made an undisclosed amount of charges to the accounts of unsuspecting victims. The investigation is on-going.
2. Myth - Only companies that transact over the internet have an exposure to data breaches.
Truth - Most incidents of data breaches do not involve a website. Data thieves know that the easiest way to a gold mine of information is to steal laptops, backup tapes, paper records, etc.
3. Myth - Our IT Manager says that there is no way anyone could get into our network or data.
Truth - Even the largest companies with the largest IT budgets are successfully breached all the time. Data breaches can come from outside hackers, but don't forget your former and current employees, vendors and others that have or had access to part of the network. If your IT person says it's impossible to penetrate your network, it may be time to find a replacement.
4. Myth - We already have coverage for this in our current policies.
Truth - Unless you have a data breach liability policy or endorsement in your insurance portfolio, you are not covered for the expenses involved for data breaches. Some of the expenses involved that data breach liability would cover are: Notification Expenses to meet standards of CA law, Public Relations Expenses such as, credit monitoring for the possible victims, Forensics to find out how the breach happened and possible Lawsuits as a result of the data breach.
5. Myth - It is too expensive to get a Data Breach Liability Coverage.
Truth - It is not as expensive as people may think. It is priced according to the size of the exposure. Many small and large businesses are adding this coverage once they understand the monetary damage that even one data breach could incur to their business. There is also a very large carrier that is offering an endorsement to regular business owners' policies.
As you can see by this short list, there are many out there that are unaware of how to handle their sensitive data and how exposed they really are.
What measures to you take to guard your most sensitive information?
No comments:
Post a Comment