Don’t Look Now, but….

Data breaches happen in every size company (even those with extensive technology security resources). Data breaches in large companies get more publicity but smaller companies have more breaches by far and they can be far more devastating to a small company without the resources of a larger one.

Some large company breach examples:

eBay, Target, Neiman Marcus, Michaels Stores, University of MD, JP Morgan Chase, Adobe, Sony, U.S. Postal Services, Staples, Kmart, Dairy Queen and Home Depot.

• Small businesses can’t afford either the cost of robust IT security systems or the cost of a data breach, which makes it even worse. Risks to small business are significant and include not only loss of confidential information but interruption of business and the ability to service their customers.

• In a 2015 study conducted at a Risk and Insurance Management Society (RIMS) meeting in New Orleans, nearly 70 percent of businesses said they experienced one or more hacking event in the last year. The study involved large, mid-sized and small businesses.

• The Identity Theft Resource Center reported that there were 781 large data breaches in 2015 (65 per month) involving about 170 million records. Through April of 2016 the same source reported approximately 370 breaches (95 per month). This represents an increase of 46 percent in reported breaches for 2016 versus 2015.

More and more companies are recognizing that their risk level is only as good as their weakest connected partners so they are requiring proof of data breach coverage from vendors that serve them.

So, even if you don’t want to pay for cyber coverage, your ‘A’ list clients may require you to buy the coverage.


If your systems were breached and sensitive date exposed, how would YOU respond?

· Do you have a plan in place?
· Do you have the money to back it up?
· How would you deal with regulators?

Tough questions that demand good answers. Call us for more information on this crucial topic.

PJ 201 945 3100

Leave a Reply