Statistics show that cyber criminals increasingly are targeting small businesses to steal personal information because they lack the cyber defenses in which large enterprises have begun to invest significant time and resources. As small businesses increasingly find themselves in the crosshairs of cyber crime, they must ensure they implement the necessary compliance programs to protect their customer information.
Mr. Zeichner writes: When cyber crime makes the headlines, it usually involves a large business, such as TJ Maxx or Heartland Payments Systems, both of which have suffered massive, highly publicized data breaches. Firms like these manage large volumes of customer information, allowing a single data breach to jeopardize the privacy of millions. In spite of the focus on large-scale data breaches, however, statistics actually show that cyber criminals increasingly are targeting small businesses to steal credit card numbers, social security numbers and other personal information.
Small businesses have become attractive targets for cyber criminals because they lack the cyber defenses in which large enterprises have begun to invest significant time and resources. According to an April 2009 Verizon study, 33 percent of all data breaches in 2008 were directed at businesses with 100 employees or less. By comparison, large businesses with more than 10,000 employees sustained fewer data breaches in 2008, totaling 25 percent.
As small businesses increasingly find themselves in the crosshairs of cyber crime, they must ensure they implement the necessary compliance programs to protect their customer information. Doing so is critical to ensure a safe and secure business that inspires consumer confidence in three key respects:
1) Ensuring Customer Confidence. Acquiring and maintaining the trust of employees, customers, vendors and suppliers is essential for a successful business. As proven in past cases, cyber crime can adversely affect a company's reputation and impact stock prices, which in turn reduces confidence and trust among those who do business with the company. According to a survey by the National Federation of Independent Businesses, 78 percent of consumers said they would be unlikely to continue shopping at a store if it experienced a data breach. Having a quality cybersecurity framework and compliance program in place can help companies prevent cyber crimes and, in the event they do occur, help the company minimize damage and restore services quickly. [footnotes omitted]