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Data breach concerns should extend to vendors and suppliers

For all the effort we supposedly put into computer security it is apparent that there are cracks in the cyber wall. This is something we have highlighted previously in efforts to keep North Carolina businesses on their game regarding protecting themselves against potential liability risks and possible litigation.

As we noted, experts widely agree that data breaches are something to worry about because of our dependency in the United States on less secure magnetic strip technology when making credit card purchases. They also warn that data stored on so-called cloud servers are particularly attractive to hackers because of the many doors it can open to other accounts. The experts also recommend clear and sincere transparency when communicating when breaches do occur.

This was all brought freshly to mind for us by a recent survey by The Hartford insurance company. The results of the research reinforce that businesses need to be attentive not only to securing their own data networks, but also to those used by their vendors and partners.

According to the poll of owners and executives of midsize businesses, 43 percent acknowledged having suffered a data breach sometime in the past three years. Thirteen percent reported that data breaches at suppliers ended up affecting their business information.

That being so, it should come as little surprise that 82 percent of the respondents identified data security to be at least a minor risk. Thirty-two percent called it a major risk.

There is too much at stake for a business to not address potential legal vulnerabilities and avoid the difficulties that could accompany business litigation. And as the study by The Hartford suggests, it makes sense to be sure that vendors and partners are toeing the line, as well.

Source: Claims Journal, "4 in 10 Midsize Businesses Have Experienced A Data Breach," June 30, 2015

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Data breach concerns should extend to vendors and suppliers | Britton Law, P.A.