Technology continues to become more advanced and widespread. From cell phones to e-commerce, the average consumer is engaging in online transactions at a rapid pace. However, as the consumer increasingly looks towards the internet for conducting business, the threat of the customer’s information becoming public is greater than ever before.
In today's world, it is important for businesses to secure their customer’s data. No one is immune from a data breach threat. The first thing that may pop into the minds of business owners is, it can’t happen to me. After all, when data breaches become public, the average consumer thinks of the data breaches that occurred at the NSA and Target. However, a large percentage of small businesses have either experienced a data breach or a cyber attack. As a result of this new threat, the importance of protecting customer data has never been more important for business owners. Here are two things business owners can do to protect their customer's data.
Tip #1 - Have Proper Technology In Place
It is important that business owners have the proper software in place to protect their customer’s data. However, business owners should be reading the fine print of the licensing agreements of their data protection software. Software companies have been settling cases that arise as a result of their software being ineffective. As a result of these settlements, the law has not yet adapted to where the business owner would be off the hook if their data was breached.
Tip # 2 - Obtain Insurance
A business should also have insurance policies to protect themselves in the event or a data breach or cyber attack. The average American doesn’t drive a car without having an insurance policy. Similarly, engaging in e-commerce without any insurance protection if you are the victim of a data breach or cyber attack is no different than driving a car without any insurance. With the right insurance policy, business owners are covered for the notification costs, the costs of any forensic investigations, regulatory and legal responses and actions, ransom payments, and any lost revenue that results from the loss of business due to the vulnerability of such an attack. With the right protection, business owners are less likely to expose their business to data breach and cyber attack liability.