Every type of business needs to be prepared to act as quickly as possible and manage the fallout after a cyber security breach. Compromised financial information requires immediate decisive action. While businesses need to work hard to protect their own information after a breach, it is just as critical that they take decisive measures to protect their customers’ information.
Some business owners or managers may feel that there is no major urgency to tell customers about a breach. Once a data breach has occurred, businesses cannot readily recover the data from whoever intercepted it. Nevertheless, letting customers know what happened enables them to mitigate the potential harm. They can freeze their credit, change passwords, or request new credit card information.
Comply With Legal Requirements
Some states mandate notifications after a company has a breach. Failure to comply with these types of statutory regulations can result in significant penalties.
Preserve Public Image
There have been many news stories in years past about large corporations that failed to notify customers in a timely manner after learning about a breach. They lost consumers’ confidence, and their purposeful decision to delay notification seriously damaged their public image.
Data vulnerability exposes businesses to major liability and losses. Good IT infrastructure and cyber liability coverage can equip them to manage a breach.