Is Your Business Prepared For the Cost of a Data Breach?

By Ned Smith

Although an overwhelming majority of small and mid-sized companies (86 percent) care about keeping customer credit card information secure, nearly two-thirds of them (60 percent) are clueless about their liability when customer data goes missing, according to a recent research study. Equally alarming, even more of them (64 percent) believe that their business is not at risk.

The survey showed that there’s significant confusion among retailers about the liability costs in the event of a data security breach . More than 60 percent of smaller merchants don’t realize that credit card companies are authorized to fine their business a per-card fee for every card that has to be cancelled if it is determined that their company is the source of the data breach.

Reputational Compliance

Reputational Compliance

According to another study, the average costs for merchants coping with data breaches in 2009 rose to $6.7 million, with a cost per customer record data breach estimated at $204.

The retailers surveyed by the National Retail Federation and First Data, an electronic payments processer, were not much better prepared when it comes to taking precautionary measures. While two-thirds (66 percent) of them claimed to be aware of the Payment Card Industry Data Security Standard (PCI DSS), only about half (49 percent) had completed a self-assessment at the time of the survey.

Although an overwhelming majority of small and mid-sized companies (86 percent) care about keeping customer credit card information secure, nearly two-thirds of them (60 percent) are clueless about their liability when customer data goes missing, according to a recent research study. Equally alarming, even more of them (64 percent) believe that their business is not at risk.

The survey showed that there’s significant confusion among retailers about the liability costs in the event of a data security breach . More than 60 percent of smaller merchants don’t realize that credit card companies are authorized to fine their business a per-card fee for every card that has to be cancelled if it is determined that their company is the source of the data breach.

According to another study, the average costs for merchants coping with data breaches in 2009 rose to $6.7 million, with a cost per customer record data breach estimated at $204.

The retailers surveyed by the National Retail Federation and First Data, an electronic payments processer, were not much better prepared when it comes to taking precautionary measures. While two-thirds (66 percent) of them claimed to be aware of the Payment Card Industry Data Security Standard (PCI DSS), only about half (49 percent) had completed a self-assessment at the time of the survey.

Source: businessnewsdaily

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

©2017 reputationalcompliance.com

Log in with your credentials

Forgot your details?