There have been many stories in the news lately about businesses suffering from damaging data breaches. These breaches can impact any kind of business, from small shops to big companies like Macy’s and Adidas. Data breaches not only place consumer data at risk but also the business’ private data and public reputation.
Many of the businesses targeted in recent data breaches handled these breaches properly. They took swift action and informed consumers as soon as possible of the risk. However, the increase in these incidents is an alarming issue that all businesses must be prepared for. One of the most effective strategies Oregon businesses can use to prepare for and prevent these risks is to establish strict cybersecurity measures.
Data breaches can cause a domino effect of legal issues for businesses
The risk of a data breach itself is certainly a problem for businesses. After all, businesses then have to investigate and determine:
- How the breach occurred;
- How much data was put at risk; and
- How they will resolve the damage and eliminate the breach.
However, fixing the data breach is by far not the only worry that businesses face. The increase in data breaches has also led to an increase in consumer class action lawsuits against businesses, like the one Capital One is currently facing. This also leads to harsh penalties from regulatory commissions, like the Federal Trade Commission.
As a result, even a small data breach could leave businesses facing a mire of legal troubles from many different directions.
Proactive cybersecurity can manage the risk data breaches pose
Therefore, businesses must take proactive measures to prevent data breaches. This generally requires two steps:
- Obtaining effective cybersecurity software, firewalls and multi-factor identification systems; and
- Establishing policies and training employees about cybersecurity.
Taking the proper steps that meet your business’ needs can help protect:
- Essential business data, such as financial information, processes and intellectual property
- Consumer data, including credit card numbers and private information
Businesses depend on both of these factors to succeed in the market. Taking precautions with cybersecurity measures can prevent the wave of legal issues that could put your business in jeopardy after a data breach.