Protecting Yourself From Online Data Breaches
By The Reschini Group
Attacks can come from unexpected directions. A right-handed football quarterback, for instance, had better hope that the left side of his offensive line can block the onrushing defense; otherwise he’s sure to be hit on his blind side.
The same rules apply when it comes to managing the risk regarding online data breaches. Most businesses realize this and have taken some steps to prevent damage, but there’s always a new “blind side” coming around the bend.
Managing the data breach risk posed by cyberattack only promises to become more difficult and challenging, as rapid and unending changes – that can make conducting business more efficient in many ways – can also open fresh doors for those with malicious intent. What’s worse, a cybersecurity breach could result from simply misplacing a laptop or smartphone containing sensitive data.
In a dramatic example of the need for diligence in HIPAA data protection policies, a provider of diagnostic imaging services discovered that one of its folders containing patient information was accessible to the public via the Internet. As a result, more than 300,000 patients’ billing information may have been exposed for months before the provider realized its error and removed the folder from public view.
The oil and gas industry faces potential exposure to data breach risks, in one example, from subcontractor personnel working onsite, with the possibility of sensitive information on customers and financial data being accessed and shared. Yet the unwanted release of private information – while damaging enough – may not represent the worst part of a data breach. That comes with the cost to repair the damage after a breach has occurred, in most cases.
Addressing cyberattacks varies by state, but in Pennsylvania, every data breach requires notification of every individual potentially affected, representing enormous costs in communication, credit repair, and image restoration. According to the 2015 Cost of Data Breach study*, conducted by IBM, the average recovery cost per lost or stolen record ranged between $145 and $154. The same study found the average consolidated total cost of a data breach is $3.8 million, a 23% increase since 2013.
Let the experts at The Reschini Group help to ensure that all of your cyber flanks are covered properly. Don’t take an unnecessary and expensive hit from the blind side.
Copyright 2016 The Reschini Group
The Reschini Group provides these updates for information only. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.