6-Part Series: Empower Your Clients & Policyholders To Keep Their Business And Their Data Secure

PART 2

INSURANCE COMPANIES CAN PROTECT AND BUILD LOYALTY WITH THEIR BUSINESS POLICYHOLDERS BY OFFERING DATA DEFENSE SERVICES.

For businesses, the damage inflicted by a data breach becomes a long-term realization. Breach response costs build up on top of regulatory fines and penalties, while lawsuits also are often added to the pile.

The total cost of a breach depends largely on the number of records lost, according to the 2015 Verizon Data Breach Investigations Report. Larger organizations, for example, typically have higher breach costs because they lose more records and have higher overall remediation costs.

Expected costs depend on the scope of the breach, ranging between:

  • $18,120 – $555,660 for 100 records lost
  • $52,260 and $1.5 million for 1,000 records lost
  • $150,700 and $74 million for 10 million records lost.6

The reputational damage also adds up as people lose trust in the organization and potential customers are put off by the company’s presumed lack of security. The financial losses can sometimes threaten the organization’s very viability, and brand equity can be damaged for years to come. People want to know that they are doing business with responsible companies that protect their valuable data.

One of the most challenging aspects of a data breach is that lost or stolen information may not ever be made whole again. Even if information from stolen devices is successfully recovered—from a backup file or through manual efforts—the very nature of this sensitive data makes its exposure an event from which full recovery often is impossible. Once an individual’s Social Security number, whether it belongs to an employee, contractor, freelancer, or customer, has been exposed or a company’s intellectual property taken, there is no way to know who has a copy of it and what they’re doing with it.

Even those businesses that aren’t breached can be impacted. If one or more employees are affected by an exposure outside the workplace, productivity is likely to drop as a result. Studies have shown that individuals spend an average of eight to 25 hours trying to resolve their identity theft or fraud, oftentimes during business hours.7

In a data-driven world that is teeming with devices, how can organizations best protect themselves, their customers and their employees in the event of a breach? Constant vigilance has become essential to ongoing business success. And protection encompasses a range of tools and considerations, including smart investments in IT security and information security, as well as in expertise that can help you protect all of your data—especially employee, customer and vendor information.

Click here to watch my exclusive web class replay of, 5 Steps You Must Take Immediately to Protect Yourself and Your Clients… Not Implementing Them Could Cost You a lot of Money and Your Reputation!

 

6 “2015 Data Breach Investigations Report,” Verizon, 30, 2015.

7 “Identity Fraud: Protecting Vulnerable Populations,” Javelin Strategy & Research, 9, 2015.