If you’ll remember, before our list of terminology, we looked at a variety of the causes of data breaches. Now, let’s narrow it down a bit further. All of the causes that we looked at seem to fall into 3 basic categories. These data breach categories include: human error, employee error and criminal activity.
The following percentages let us know what we might be facing:
- Human Error – 19%
- System Error – 32%
- Criminal Activity – 40%
As the percentages show, there are still a few unknowns. Surprisingly, we can see that criminal attack is actually less than one-half of the overall cause of the problem.
In order to get an even closer look, let’s look at some of the misconceptions about data breaches.
When it comes to data breach or any cyber-risk, there is a lot at stake. This includes things like data, customers, reputation and a businesses’ bottom line.
The truth is that no business is too big, too small or too well protected to be immune to a data breach!
Let’s take a look at some common misconceptions about a company’s safety.
The first one is that only large companies are at risk (Let’s see if that’s true.)
- Companies with 1-250 employees had 34% of the data breaches last year
- Companies with 251-2500 employees had 25% of the data breaches last year
- Companies with 2500+ employees had 41% of the data breaches last year
So, it would seem that small and medium size companies actually account for more data breaches than large companies do.
We have state-of-the-art security systems in place:
- IRS – 724,000 records hacked
- Centene Health Care – 950,000 records hacked
- FBI/Homeland Security – 20,000 FBI, 9000 Homeland records hacked
- LinkedIn – 167M records hacked
- MySpace – 6.5M records hacked
- Office of Child Support Enforcement Wash DC – 21M records hacked
- Verizon – 1.5M records hacked
- Yahoo – 500M records hacked
**The above was just for the year 2016**
We’ve never had an issue, so we probably won’t have one:
We outsource our data and they have coverage:
The original owner of any data is liable for it. Whether you outsource to a cloud, vendor, supplier, payment processor or any payment service, it doesn’t matter.
We can handle the cost of a breach:
Cost of data breach $217 per record, average cost 6.53 million per breach
We’re already covered for cyber-events:
As of October 2016 only 29% of businesses had any cyber coverage. Current cyber policies are filled with exemptions. The coverage that does exist still leaves companies severely under-insured when compared to the cost of damages from today’s breach.
Now that we’ve seen some statistics for our data breach categories, something seems clear. Anyone or any company is vulnerable. Before disaster strikes, find out more about protecting your greatest asset. Contact MrInsurability to learn about a customizing a Data Breach policy for your business!