Many small businesses think they are not in danger from cybercrimes such as Target’s massive customer data breach because they do not have the amount of information that would make them a target for an attack. This is misguided, as the Target breach revealed several interesting details regarding the safety of cyber information and how businesses can be affected by breaches in many indirect ways.
The Target breach began when Fazio Mechanical, an HVAC company who was monitoring the retailer’s energy consumption, was compromised. Malware was delivered through email to Fazio allowed hackers to steal credentials needed to access Target’s system. Once the hackers were inside, there were little to no controls to prevent the hackers from gaining access to point of sale (POS) terminals, leading to nearly $250 million in losses for Target and the compromise of millions of customers’ credit information. Interestingly, hackers were able to access cash registers after gaining access to a connected deli meat scale.
In the Age of the Internet, Everything is Connected
The moral of this story is that the internet is a connected system with a vast ecosystem of interconnected relationships. Therefore, your company’s security may only be as good as those you do business with. From cloud computing services to HVAC companies, all third party companies you rely on could potentially expose your company to a similar Target-sized breach. Smaller businesses in the chain are oftentimes less prepared and less able to survive the consequences of a breach than larger companies.
For more information on this topic, check out our original blog post on ERAI.com.
Insurance & Financial Services in Valencia
Does your company have written and explicit policies to deal with a data breach? At LBW Insurance & Financial Services, our knowledgeable business insurance agents can help you review your cyber insurance policy and mitigate your risk. To find out more about how we can help you protect what you have worked so hard to build, call us today at (888) 522-7805.