Data Security Breaches and Privacy Losses
Insurance Might Not Be Optional Anymore
In today’s data-driven world where time sensitive information is stored and transferred electronically, organizations of all sizes are vulnerable. Costly and damaging liabilities from data security breaches are occurring at alarming and growing rates, as evidenced in the recently publicized high profile data breaches affecting millions of Target, Michael’s, and Neiman-Marcus customers.
Recently the FBI warned all US retailers to prepare for more cyber attacks after discovering about 20 hacking bases in the past calendar year. They distributed a report to retailers in late January describing the risks posed by “memory-parsing” software that infects cash registers and credit card machines. The FBI report said the bulk of the point of sale malware cases that the agency has investigated involve small-to-mid sized local or regional businesses, whose estimated losses each range from tens of thousands of dollars to millions of dollars.
When it comes to a data security breach or privacy loss, it isn’t as much a matter of “if” it will happen, but “when.”