With the game-changing impact of Facebook, LinkedIn, Instagram and Twitter, we've become a nation of oversharers-personally and professionally. And yes, you may regret posting that toga party picture from 1984. But that wardrobe indiscretion is nothing compared with the damage that oversharing sensitive business information could do to you and your firm.
Think about it: How would you feel if your small business inadvertently released private customer information to total strangers? More important, how could those customers trust you going forward? And what about your reputation?
Judging from recent headlines, you might think data breaches only happen to big box retail stores. But small businesses are just as vulnerable to cyberattacks-perhaps even more so. According to a recent study by the National Small Business Association, 44 percent of businesses surveyed had been the victims of at least one cyberattack within the last year.
Attacks Hurt (But Hiding Them Hurts More)
Laws in 47 states require businesses large and small to report data breaches, in a timely manner, to affected customers. If a business fails to report an incident, it could face hefty fines-such as the $3,000 a small Vermont gift store had to pay for failing to tell its Internet customers about a security breach. Based in New York? Well, as we know, everything is more expensive in the Empire State. You could face a maximum civil penalty of $150,000.
Develop Your Plan of (Cyber)Attack
According to many Internet security experts, it's not a question of if you'll experience a data breach, but when. Here are four ways to make sure you're in compliance with the latest notification regulations:
1. Know the law. Data breach notification laws vary widely from state to state. The National Conference of State Legislatures website has links to the security breach laws in your area, which cover everything from how to tell your customers you've been hit (by phone, email, even statewide media ) and whom to tell (for starters, your local attorney general) to how soon you have to get the word out.
2. Clean house. The less information hackers or random thieves can get their hands on, the better. Work with a partner to securely shred expired paper records on a regular schedule. Be sure to destroy unneeded hard drives, and encrypt everything you can.
3. Seek professional help before a hacker strikes. Don't wait until after a data breach to take action. An experienced partner can help you manage your electronic and paper data so that in the event of a breach, you know what's missing and what digital information may have been affected.
4. Don't wait to give your clients the bad news. For one thing, it's the law. Not all states have a set maximum time period, but nearly all require you to inform your clients as soon as is reasonably possible, unless a criminal investigation demands otherwise.
Oversharing on Facebook is nothing compared to accidentally sharing the credit card numbers of your most loyal clients. Knowing what to do when a data breach occurs will help prevent possible fines or civil action-as well as minimize damage to your company's reputation.
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With the game-changing impact of Facebook, LinkedIn, Instagram and Twitter, we've become a nation of oversharers-personally and professionally. And yes, you may regret posting that toga party picture from 1984. But that wardrobe indiscretion is nothing compared with the damage that oversharing sensitive business information could do to you and your firm.
