We at Navigato & Battin have witnessed the damage and destruction an individual or small business endures as a result of computer fraud. We asked our friends at Gallant Risk & Insurance Service to provide some insight to our clients about the risks and insurance available to guard against internet fraud. Below is an article prepared by Gallant.
Cybersecurity and Private Risks
Most small and medium-sized business operations are not immune to a cyberattack. In fact, the personal customer data and payment information that most small businesses collect and store makes the business as much a prime target for hackers as a large corporation. According to recent surveys, 43% of all cybersecurity attacks are aimed at small businesses, and that number is likely to increase. Likewise, 54% of businesses believe their businesses are “too small” to be targeted by cyber criminals and 83% of small businesses say they lack the money they would need to recover from a cyberattack or data breach.
Financial Impact of a Breach:
If your business is the victim of a data breach, the financial costs incurred to resolve and recover from the event can be staggering. According to the Ponemon Institute, the average price for a small business to clean up after a breach is approximately $690,000, and this figure doesn’t take into account the loss of revenue. Some of the direct costs associated with a data breach include:
- Notifying your customers that a breach has occurred;
- Conducting a forensic investigation to determine the source and extent of the breach;
- Fines and penalties imposed by the Payment Card Industry, Security Standards Council, payment card associations, and your facility’s own financial institution;
- Ongoing customer credit report monitoring and identity theft repair and, in some cases, costs associated with reissuing credit and debit cards to customers whose personal data was compromised;
- Upgrading or having to replace your compromised computer system, payment software and hardware, and server; and
- The often-required implementation of additional security monitoring services to ensure ongoing compliance with the Payment Card Industry Data Security Standards (PCI DSS).
Securing Cyber Insurance:
Cyber insurance is a critical but often overlooked component of cybersecurity management for businesses covering both first- and third-party costs, as well as business interruption expenses, if a cybersecurity breach forces your business to shut down. The agents at Gallant Risk & Insurance Services are experienced and knowledgeable about cybersecurity insurance. If your business does not yet have cybersecurity insurance, please contact our friends at Gallant Risk & Insurance Service to secure a policy that is right for you.