Security Breaches

You may not realize it, but security breaches can happen at any time.  Cyber-attacks are becoming more frequent and severe with most businesses suffering as least one data breach in the past year.

As these cyber crimes continue to escalate, it’s important for you to learn some preventative measures before hackers penetrate deep into you company’s data system and silently steal information.  Below are a few steps to follow in order to respond to a data breach:

1.  Be aware of the types of personal data covered by 46 state data breach notification laws, including social security numbers, which could belong to a shareholder, board member, employee or customer.

2.  Determine whether your company has procedures in place for responding to a possible data breach and help make sure those procedures are complied with on a regular basis.

3.  Carefully think through all communication about the data incident or breach, by taking into account SEC and related disclosure requirements, and coordinating with your company’s privacy office, information technology, internal and external public relations professionals, the legal department and outside counsel.

4.  Consider cyber-insurance coverage; your company’s insurance broker can provide more information. This can help ease insecurities that may arise.

5.  After a data incident or breach, review company policies, procedures and practices to determine whether any changes are needed.