Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Cloud Computing
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Are You Taking a Gamble with Enterprise Assets at Risk?

Are You Taking a Gamble with Enterprise Assets at Risk?
By David Turkaleski

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

With valuable computer assets and data susceptible to loss and theft every day, relying on software, good luck or conventional insurance can be a real gamble. Author and insurance expert David Turkaleski explains how cyber-liability coverage can help protect against everything from a lost laptop to a data breach affecting thousands of customers.
 


Could an employee’s lost laptop cost a company $5.4 million? It could if the employee has access to sensitive customer data, hasn’t taken proper security precautions, and the company hasn’t shielded itself with a proper cyber-liability protection policy.

It’s far simpler to replace a misplaced or stolen computer than it is to investigate and seal a data breach, notify thousands of customers that they are potential victims (as required by law in most states) and, in the worst-case scenario, pay damages, legal fees and PR management costs as a result of a class action or other litigation.

Persistent Threats

However, executives by and large seem slow to recognize cybercrime as a growing international problem, with U.S.-based companies the primary target of foreign-based hackers. Energy companies, in particular face an increasingly sustained threat, according to authorities here. In fact, the National Institute of Standards and Technology in February released a framework to help targeted companies avoid what Leon Panetta, the former defense secretary, once called a 'cyber Pearl Harbor.'

According to some recent estimates, ongoing cybercrime against top U.S.-based companies costs our economy more than $300 billion each year. And the cost of a typical data breach of a public company’s systems could average as high as $5.4 million, according to the Ponemon Institute, which conducts independent research on privacy, data protection and information security policy.

For small-to-midsize businesses, the average cost per breach may be smaller -- roughly $188,242 -- according to specialist insurer Hiscox, but the complete toll can be higher. Two thirds of such companies close their doors within six months of a cyber breach. Without protection, they don’t have the same resources as a major corporation to withstand the damage.

And small companies that think they are below the radar of hackers should know that attacks on businesses with fewer than 100 employees amounted to 31 percent of breaches in 2013, according to a study by insurance underwriter Chubb. Hackers know that compromising a vendor’s server can yield access to much larger connected companies and their customers’ data.

Weak data security can be costly in another way, too. A convicted former hacker has just announced that he’s launching a hedge fund that will short-sell stock of companies his fund managers deem vulnerable to cyber-attacks. Such companies would then have to cope not only with damage control from breaches (and a potential rise in attacks from grateful hackers) but also with a setback in raising capital. Data security is now paramount to a health bottom line and companies who want to be seen as fit to successfully conduct business, ignore it at their peril. (continued...)

1  |  2  |  3  |  Next Page >

 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Cloud Computing
1.   Concerto 2200: Dedupe, Compression
2.   Office 365 Tailored for Attorneys
3.   Apple Opens China iCloud Data Center
4.   Samsung Buys SmartThings
5.   Cisco Axes 6,000 Employees


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Chinese Hackers Nab Info on Millions of U.S. Patients
A group of Chinese hackers has stolen the personal information, including names and Social Security numbers, of about 4.5 million patients at hospitals operated by Community Health Systems.
 
Premier FBI Cybersquad in U.S. To Add Agents
After helping prosecutors charge Chinese army officials with stealing trade secrets from major companies and by snaring a Russian-led hacking ring, the premier FBI cyber-squad is getting a boost.
 
Apple Opens iCloud Data Center in China
Treading lightly, Apple acknowledged it has started to store encrypted iCloud personal data of some Chinese users on servers in mainland China, operated by the state-owned China Telecom.
 

Enterprise Hardware Spotlight
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 
Cisco Axes 6,000 Employees in Restructuring Plan
Faced with declining profits, Cisco is laying off up to 6,000 employees in the months ahead -- a whopping 8 percent of its global workforce. That's in addition to the 4,000 jobs Cisco cut last year.
 
Web Slows, Have Internet Routers Reached The Limit?
If you encountered problems connecting to the Internet on August 12, you weren't alone. Networking experts blame the wide-scale slowdown on outdated routing systems that are reaching their limits.
 

Mobile Technology Spotlight
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
Verizon Earns Top Rating in Mobile Network Comparison
A new report says Verizon Wireless was the top-performing U.S. cellphone service provider in the first half of 2014, on a nationwide and state-by-state basis, as well as in metro areas.
 
Sprint Comes Out with Data Guns Blazing
As its new CEO promised, Sprint has rolled out a new aggressively competitive price plan. The shared data plans promise twice the high-speed data and at lower prices than AT&T and Verizon Wireless.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.