Data breaches are unfortunately becoming an inevitable part of life. In addition to the IT headaches, reputational risk and customer churn associated with a breach, the monetary costs are also a huge concern.
A data breach typically leads to fraud, which in turn can result in monetary losses from the victim. Furthermore, the FTC can fine a business up to $3,500 per data breach violation and the state may fine the business around $1,100 per record stolen. This means that if 10,000 customer records are stolen from a business, it will cost the most than $11 million.
Most organizations are willing to help compensate victims and help prevent further fraud with free credit monitoring. However, the obligation to compensate victims can severely dent a business’ budget and may result in closure.
It’s devastating to be notified that your information has been exposed at the fault of a university, health center or business. What is even more alarming is that there is not much you can do to prevent it as it is up to the organization to protect their data.
Have you had information stolen as a result of a breach? What were the costs to you or your business? What additional preventative measures should companies take to reduce the risk of breaches and the resulting cost? We are looking forward to your comments!
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