Business owners would like to think that security breaches are a thing of the past. With so many advances in technology, one would think that this also means advances in security against data theft. Unfortunately, this is not the case. Identity theft is on the rise and security breaches are still ever-present in today’s society.
It is not too far-fetched that your business could be next.
Most business owners have a basic understanding of their computer systems and how they work; but when you start using lingo such as firewall, back door, patch and anti-malware, eyes glaze over and confusion ensues. Hackers, however, have a wealthy understanding of what all these terms mean and are able to use this knowledge for fraudulent reasons.
So what could a hacker gain by breaking into your system?
The retail industry is very susceptible to identity theft due to the amount of personal information kept on each and every customer. Typically, salon owners do not require their clients to disclose personal data such as Social Security numbers. But, when you collect any type of private info from a salon guest, it is your responsibility to protect it from being compromised. Identity theft has expanded to involve more than just stealing banking and credit card information. It now includes the theft of email addresses, log-ins, passwords and other electronic data.
When you collect any type of private info from a salon guest, it is your responsibility to protect it from being compromised.
It is becoming increasingly common for salon owners to now use some form of EFT for membership payments, meaning they are maintaining the checking account or credit card info of many clients. A cyber-attack or data breach puts your clients’ financial information at risk and unfortunately, something as seemingly harmless as an email address can be used to obtain this financial information.
Even if a financial loss is not actually suffered, the “clean up” of the cyber-attack against your business can be equally demanding and devastating. A data breach could make you liable for claims by those whose info was taken, and you could be subject to administrative action, such as investigation. Costs to defend your business in these types of situations can be very expensive.
It is important to find out how the hacker got into your system and quickly remedy the problem. If the proper insurance protection is not secured prior to a data breach occurrence, your business could be in jeopardy due to recovery and reimbursement costs, as well as damage to your reputation.
Fortunately, there are ways to protect your business from identity theft and security breaches. Corporate Identity and Data Theft Protection are available as an additional coverage to many business insurance policies. Stand-alone Cyber policies can also offer a broad range of coverage for these types of situations. Some policies offer prevention techniques in addition to protection.
There are many reasons to insure your business and it is important to consider all the potential risks. The good news is that coverage against cyber-attacks and data theft may not be as expensive as you think – especially when compared to the possible extensive damages to your business, along with the peace of mind it provides.
Talk to your specialized insurance agent and get the correct coverage at the appropriate price. Feel free to call our office with questions.
