As we wrote last week, data security breach is continuing to be a major problem for businesses large and small. Data breaches result in loss of consumer/customer. According to a poll by Consumer & Communication Industry Association released in December 2013, consumers are most concerned with the security of the personal information they provide to various businesses and will modify their actions to protect their information.
States prosecute businesses that fail to notify the affected individuals or notify them in time. In California and in New York, businesses are required to notify affected individuals "in the most expedient time possible." Last week, California's Attorney General filed a suit against Kaiser Foundation Health Plan, Inc. for failure to notify the affected individuals in time for a breach that occurred in 2011. The U.S. Senate is working on a breach notification law that will most likely replace Many class action lawsuits have been filed against businesses whose systems were breached. Within hours of reporting the December 2013 data breach, a lawsuit was filed against Target. While outsiders cause the majority of the havoc, insiders, such as employees and contractors cause a noticeable number of breaches.
How do you protect your business? Preparation, Prevention and Prompt Action.
-Encrypt the data you maintain on your system.
-Allow access to limited number of employees/contractors.
-Provide training about the negative consequences of unauthorized use of the data to your employees.
-Respond to any suspension of data breach -deal with them, they will not go away.
-Understand your legal obligations in case of breach.
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