Does My Company Really Need Data Security?

After your firm's been hacked, free cappuccino at the office won't seem so great anymore.

You've read it in the news, and hacking and data breaches against the big corporations just sounds awful, but it could never happen to your small to mid-size business, could it? Think again. Security breaches are on the rise everywhere, not just aimed at the likes of Equifax, Uber, Home Depot, and Target. The average cost to repair the damage from a data breach now stands at $7 million dollars, and that number is climbing.

If your customer, employee, and business partner data is compromised, it doesn't quite matter if there were 100 records or 100,000. The financial cost and the damage to your business's reputation could be enough to sink you. But companies are reluctant to pay money for serious data security that's tantamount to buying insurance for the worst case scenario. Think about life insurance. If things go bad, your family's taken care of. In the case of data security, your business's life is on the line. One employee can sue the employer for the breach, and that could put a small business flat on its back. That could be your business.

When a transcription company that worked with Boston Medical Center suffered from a data breach due to mediocre security measures, it exposed the sensitive medical information of nearly 15,000 patients.

While this number is small relative to Target’s massive data breach, it’s still significant—not only to the people whose information was stolen, but also to the transcription company that made the error. Boston Medical Center cut its ties with the company, its reputation was tarnished, and it opened itself up to the possibility of numerous lawsuits and government action.

It took only one misstep to devastate this transcription company, and the same could be true for your company (especially if you’re in an industry that handles sensitive information). Whether you’re entrusted with Social Security numbers, credit card information, or medical records, your customers deserve to be protected.

Small Business Data Security: What to Consider

There is a common phrase in the software development industry that more companies should take to heart: Security should be built in from the start. If you can incorporate proper procedures into your workflow early on, it creates a habit and a culture of security in the workplace.

But if your company is already in full swing, don’t let that prevent you from ramping up security measures to keep important data safe. Here are a few things to consider when pursuing better data security:

Cost: The main thing to think about when upgrading your security is whether the cost of protection is worth more than what you’re protecting. You wouldn’t spend $300 on a safe that’s only holding $100, for instance.

Of course, the cost of information isn’t quite as easily calculated. Do your homework to learn how much data breaches have cost other companies of your size, and price that against different estimates from security companies. With the current technology available, any size business should be able to afford more than adequate protection.

The price of disruptions: While you should expect some disruption of your usual workflow, when looking at security measures you should also take into account the way your employees work. If you can afford it, go with the options that cause the least amount of disruption.

What you have to lose: Security breaches cost more than just money. If your business relies on customer trust (like the transcription company’s did), then security needs to be a top priority. If you’re a small merchant that accepts credit card payments, then you must make sure those credit card numbers are secure.

Where potential threats lie: Before you invest in security measures, think about the biggest threat to your sensitive data. Is it an outsider, a rogue employee, or plain carelessness? Take stock of your weakest points so you know where you need security most.

Whether your company consists of five employees or 5,000, you can’t afford to neglect security. When it comes to sensitive data, it only takes one betrayed customer to destroy your company’s reputation. Don’t gamble your entire business on the hope that you won’t fall prey to a cyber-attack. With a few basic measures in place, you can rest assured that your customers’ information is safe.

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