Over the last few years, there have been a number of large data breaches. When Target suffered a data breach that affected 40 million debit and credit cards, it brought attention to the issue that data breaches are more common that most thought and that anyone can be a victim.
Many people believe that only large companies are prone to data breaches, when in reality even small businesses are susceptible to undergoing a breach. According to a Verizon Data Breach Report conducted in 2015, researchers discovered that small businesses in retail were more than four-times as likely to experience a breach. Likewise, 70% of retail breaches occurred at the point of sale.
The damage that is produced from a breach can cause detrimental harm to the future of an organization, including merchants having to close down their business. Small businesses unfortunately do not always have funding to continuously upgrade their terminals or POS systems and without up-to-date solutions, merchants have greater security risks.
To demonstrate the importance of having data breach protection and security options in place, here are some statistics in regards to the cost of security breaches:
- The average expense of a corporate data breach has increased 15 percent within the past year to $3.5 million
- Electronic crimes were reported more damaging or costly by over 54 percent of those surveyed.
- Companies within the U.S. and Germany paid the most for security breaches at $246 and $215 per compromised record.
- Financial services companies saw an increase of financial losses by 24%
- Every stolen or lost record that held sensitive or confidential information costs an average of $145.10
- Businesses that proclaimed they have a strong security solution were able to lessen the cost as much as $14 per record.
Since First American services thousands of small to mid-sized businesses everyday, we recognize the significance of protecting our merchants. In addition, we acknowledge the financial means of our merchants and make sure that our solutions are accessible at an affordable rate to guarantee everyone has access to the security they deserve.
First American’s data breach protection program provides merchants coverage for fees incurred and fines inflicted in the event of a supposed or actual PCI-DSS security breach. On top of providing data breach protection, all of our technology is up-to-date, meets PCI Compliance, and is EMV-capable to help reduce the chance of a breach or fraud from occurring.
Learn more about data breach protection and how you can make your business more secure today.