If you collect your customer’s personal information, then you may already be aware of state breach notification laws and federal laws regarding the loss, theft, or possible compromise of personal data.
Cyber breaches continue to be a concern for business owners as the sophistication and reliance on Internet technology increases faster than ever before. Not only do you have to consider internal risks such as a malcontent or negligent employee, but also bad actors that may attempt to take advantage of security flaws in your network, hardware, software, or honest, but unaware employees. According to Ponemon’s 2016 benchmark study, the average cost for each lost or stolen record containing sensitive and confidential information is $221.
A rudimentary calculation concerning a portion of the overall cost of a breach would be 500 records stolen multiplied by $221 equals $110,500. Again we caution you this is only a portion of the overall cost.