Another Wake Up Call For Businesses to Secure Against Data Breaches
Posted on Thu, May 19, 2011
Reported in yesterday’s Worcester Business Journal was yet another example of a data breach affecting residences and businesses using the state Division of Unemployment Insurance system.
“A computer virus may have compromised sensitive information about individuals and businesses using the state Division of Unemployment Insurance system, the state announced yesterday.
Information such as names, social security numbers, employer identification numbers, email addresses, and the addresses and bank information of residents and businesses could have been compromised, the state said.”
Even with comprehensive security practices in place, any organization such as the State Labor Office is still vulnerable to potential breach. If your organization’s systems were breached, could you afford the cost and time it takes to correct the damage?
According to the 2009 U.S. Cost of a Data Breach Study by the Ponemon Institute, the average cost for merchants coping with a data breach in 2009 rose to $6.7 million with the cost per customer record breached estimated at $204. So if your businesses’ computer system was hacked and the records of 1,000 customers were stolen, this could cost your business upwards of $204,000. This amount could potentially wipe out a small business.
Cyber liability insurance can help protect businesses against various cyber risk exposures. Contact us for questions about cyber liability insurance or to receive a free estimate.