Keeping track of customer and business data used to be much more difficult, but arguably much less risky. The advancement of the internet and technology means that it is easier than ever to maintain databases of customer and business information, but that information is also easier to access by those with malicious intent. Most business owners understand that a data breach will probably cost them money, both due to the event itself and in attempting to remedy the situation. However, many here in Georgia may be unaware of just how much the cost of this facet of internet law can be.
Though the overall cost has dropped slightly, as recently reported by IBM, data breaches can still be a big financial problem for many businesses. The study found that the average cost per breached record is $146. However, the most common type of data breach, which involves customer information, is higher than that at $150 per record. Another factor that seems to increase the cost per record is whether the attack was malicious, which raises the rate to $175 per record. This is particularly concerning as malicious attacks make up the majority of data breaches.
Businesses cannot afford to lose customers, which, unfortunately, is the most expensive result of a data breach. The good news is that the study found that businesses that have an existing incident response team, or that have tested out a plan to handle a data breach saved more money after a breach than those who did not. This may be especially welcome news as most data breaches are financially motivated and cost businesses an average of $8.64 million per event.
A Georgia business that suffers a data breach may be subject to litigation by affected parties. Working with an attorney who understands how internet law applies to businesses of all kinds may help a company through what is often a difficult process. This way, a business can get back on track and continue to serve its customers.
