While most management teams view investments in information technology as a way to gain competitive advantages, they are now seeing the other side of the equation. As more numerous and sophisticated cyber attacks become the norm, data breach liability is now a major business risk element. As a professional in information destruction, it’s clear to me that managing exposure are reaching new levels.
New Levels of Accountability
As last year’s Target data breach demonstrated, the repercussions of such breakdowns are increasingly massive and expensive. Management boards, investors, and others are holding executives accountable for such IT failures as the costs and consequences rise.
According to an analysis of the Target situation by Krebson Security, the data breach liability continues to rise. Just a few of the relevant numbers include:
- More than 70 million records stolen with personal information such as names, addresses and emails
- At least 40 million debit and credit card numbers compromised
- A 46 percent drop in profits for the fourth quarter of 2013, the time of the breach
- A cost of at least $300 million to Target, credit unions, and banks to reissue cards and upgrade terminals
These are numbers that make the potential for data breach liability to be one of the most significant risks that businesses face today.
Anticipating and Containing Data Breach Liability
The only way to deal with the potential for a data breach today is a holistic, proactive approach to the protection of data and information. Sophisticated, highly organized blackhat operators are now targeting all forms of electronic and printed personal and business information. Dealing with this threat requires diligence from the highest level of IT security to daily procedures such as shredding all documents with any sensitive information. Many businesses find that having an All Shred policy simplifies compliance thus limiting data breach liability exposure.
The team at Sergeant Shredder fully understands the issues related to data breach liability and works with each of our clients to review policies and procedures for dealing with all records that are scheduled for disposal. This includes shredding all digital media and related devices like copier hard drives as they also hold sensitive information.
We can assist in containing such threats by shredding materials in a manner that ensures compliance with state and federal laws and regulations. We can help whether it’s for a one-time purge or regular shredding services.
How do you limit your business’ data breach liability?