Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
Customer Service
Is your endpoint data protected?
Average Rating:
Rate this article:  
Are You Taking a Gamble with Enterprise Assets at Risk?
Are You Taking a Gamble with Enterprise Assets at Risk?

By David Turkaleski
May 9, 2014 9:58AM

Bookmark and Share
With valuable computer assets and data susceptible to loss and theft every day, relying on software, good luck or conventional insurance can be a real gamble. Author and insurance expert David Turkaleski explains how cyber-liability coverage can help protect against everything from a lost laptop to a data breach affecting thousands of customers.
 


Could an employee’s lost laptop cost a company $5.4 million? It could if the employee has access to sensitive customer data, hasn’t taken proper security precautions, and the company hasn’t shielded itself with a proper cyber-liability protection policy.

It’s far simpler to replace a misplaced or stolen computer than it is to investigate and seal a data breach, notify thousands of customers that they are potential victims (as required by law in most states) and, in the worst-case scenario, pay damages, legal fees and PR management costs as a result of a class action or other litigation.

Persistent Threats

However, executives by and large seem slow to recognize cybercrime as a growing international problem, with U.S.-based companies the primary target of foreign-based hackers. Energy companies, in particular face an increasingly sustained threat, according to authorities here. In fact, the National Institute of Standards and Technology in February released a framework to help targeted companies avoid what Leon Panetta, the former defense secretary, once called a 'cyber Pearl Harbor.'

According to some recent estimates, ongoing cybercrime against top U.S.-based companies costs our economy more than $300 billion each year. And the cost of a typical data breach of a public company’s systems could average as high as $5.4 million, according to the Ponemon Institute, which conducts independent research on privacy, data protection and information security policy.

For small-to-midsize businesses, the average cost per breach may be smaller -- roughly $188,242 -- according to specialist insurer Hiscox, but the complete toll can be higher. Two thirds of such companies close their doors within six months of a cyber breach. Without protection, they don’t have the same resources as a major corporation to withstand the damage.

And small companies that think they are below the radar of hackers should know that attacks on businesses with fewer than 100 employees amounted to 31 percent of breaches in 2013, according to a study by insurance underwriter Chubb. Hackers know that compromising a vendor’s server can yield access to much larger connected companies and their customers’ data.

Weak data security can be costly in another way, too. A convicted former hacker has just announced that he’s launching a hedge fund that will short-sell stock of companies his fund managers deem vulnerable to cyber-attacks. Such companies would then have to cope not only with damage control from breaches (and a potential rise in attacks from grateful hackers) but also with a setback in raising capital. Data security is now paramount to a health bottom line and companies who want to be seen as fit to successfully conduct business, ignore it at their peril. (continued...)

1  |  2  |  3  |  Next Page >

 

Tell Us What You Think
Comment:

Name:



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 Customer Service
1.   Oracle To Buy TOA Technologies
2.   Chief Customer Officers' Clout Grows
3.   FTC Wants Fix for Mobile Cramming
4.   Watson's First Consumer-Facing Gig
5.   Social Media Haters Speak Up


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Ruling Against Microsoft Raises E-Mail Privacy Concern
Microsoft has been ordered to hand over e-mails to law enforcers in the United States as part of a criminal investigation, even though the e-mail is stored at a data center in Dublin,Ireland.
 
Twitter Buys Password Manager Startup Mitro
Following on the heels of another acquisition earlier this week, Twitter is adding to its fold a password-manager security startup called Mitro, which in turn is releasing its code as open source.
 
Government Requests for Customer Data Skyrocket
Requests for customer data from the government jumped 50 percent in the first half of 2014, according to Twitter, which received more than 2,000 requests for user info from gov't agencies.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.