Data Breach Tips For Small Businesses

The Identity Theft Resource Center lists more than 79 million records reported compromised in the United States in 2007 -- almost a fourfold increase from the nearly 20 million records reported compromised in 2006. The cause of the data breaches ranged in sophistication from the expert work of computer hackers to the negligent handling of sensitive information on the part of company employees.

So far 2008 looks a lot like 2007. There have already been major data breaches at some very recognizable companies such as MTV and T. Rowe Price. However, just because a business isn’t part of the Fortune 500 doesn’t mean it is safe from the risk of a security breach, and Better Business Bureau (BBB) wants small businesses to be prepared to handle a breach if the business’ or customers’ financial information is stolen.

“While breaches at major corporations make the news, many small businesses also find themselves victims of security breaches,” said Steve Cox, BBB spokesperson. “Sensitive financial information on both a business and its customers can be compromised by poor handling of computer or paper data or stolen by thieves and hackers, and small business owners must be prepared to respond quickly to lessen the damage done.”

Regardless of how a data breach occurs, responding quickly can help a business regain trust and retain its customer base. BBB offers the following steps and guidance for small business owners in the event they experience a security breach:

Notify Customers

Currently, 39 states have laws that require customer notification in the event personal data is lost, stolen, or inadvertently disclosed, and these laws may expand to a national level soon. Many states require companies to notify their customers of any data breach. Other states require notification when harm to potential victims is likely. Even if the law does not require it, businesses should strongly consider the advantages of giving notice to customers whose information was compromised.

If a business chooses to inform customers about a security breach, it should

  • Describe the nature of the incident.
  • Inform them what has been done to address the problem.
  • Advise them on what the company will do in the future to further reduce the chance of future security breaches.

Notify Law Enforcement and Other Authorities

If a breach occurs, it is important that the business alert appropriate law enforcement officials immediately so they can investigate the incident. This could include local police, state authorities, or even the FBI. BBB recommends that companies check with their legal advisors for counsel now, so that in the event a breach does happen, the business is prepared to contact the appropriate local law enforcement agency quickly.

BBB also recommends alerting the three national consumer reporting agencies: Equifax (www.equifax.com, TransUnion (www.transunion.com) and Experian (www.experian.com).

Businesses should also alert the bank or company hired to process payment cards. It’s important that the compromised accounts are watched or closed to prevent fraud from occurring on them. Unfortunately, businesses could be liable for any resulting fraud, so quick notification to payment card companies can help.

Customer Support

If a breach occurs, BBB advises that businesses:

  • Encourage customers to monitor their credit reports for signs of identity theft. If a business can afford the expense, it should consider paying for a credit monitoring service for affected customers for a designated period of time (generally 6-12 months).
  • Recommend that any customer experiencing or suspecting identity theft alerts the business, files a police report, and notifies the three national consumer reporting agencies.

Featured

  • Security Today Announces The Govies Government Security Award Winners for 2025

    Security Today is pleased to announce the 2025 winners in The Govies Government Security Awards. The awards honor outstanding government security products in a variety of categories. Read Now

  • Survey: 60 Percent of Organizations Using AI in IT Infrastructure

    Netwrix, a cybersecurity provider focused on data and identity threats, today announced the release of its annual global 2025 Cybersecurity Trends Report based on a global survey of 2,150 IT and security professionals from 121 countries. It reveals that 60% of organizations are already using artificial intelligence (AI) in their IT infrastructure and 30% are considering implementing AI. Read Now

  • New Research Reveals Global Video Surveillance Industry Perspectives on AI

    Axis Communications, the global industry leader in video surveillance, has released its latest research report, ‘The State of AI in Video Surveillance,’ which explores global industry perspectives on the use of AI in the security industry and beyond. The report reveals current attitudes on AI technologies thanks to in-depth interviews with AI experts from Axis’ global network and a comprehensive survey of more than 5,800 respondents, including distributors, channel partners, and end customers across 68 countries. The resulting insights cover AI integration and the opportunities and challenges that exist with regard to security, safety, business intelligence, and operational efficiency. Read Now

  • SIA Urges Tariff Relief for Security Industry Products

    Today, the Security Industry Association has sent a letter to U.S. Trade Representative Jamieson Greer and U.S. Secretary of Commerce Howard Lutnick requesting relief from tariffs for security industry products and asking that the Trump administration formulate a process that allows companies to apply for product-specific exemptions. The security industry is an important segment of the U.S. economy, contributing over $430 billion in total economic impact and supporting over 2.1 million jobs. Read Now

  • Report Shows Cybercriminals Continue Pivot to Stealthier Tactics

    IBM recently released the 2025 X-Force Threat Intelligence Index highlighting that cybercriminals continued to pivot to stealthier tactics, with lower-profile credential theft spiking, while ransomware attacks on enterprises declined. IBM X-Force observed an 84% increase in emails delivering infostealers in 2024 compared to the prior year, a method threat actors relied heavily on to scale identity attacks. Read Now

New Products

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.

  • Luma x20

    Luma x20

    Snap One has announced its popular Luma x20 family of surveillance products now offers even greater security and privacy for home and business owners across the globe by giving them full control over integrators’ system access to view live and recorded video. According to Snap One Product Manager Derek Webb, the new “customer handoff” feature provides enhanced user control after initial installation, allowing the owners to have total privacy while also making it easy to reinstate integrator access when maintenance or assistance is required. This new feature is now available to all Luma x20 users globally. “The Luma x20 family of surveillance solutions provides excellent image and audio capture, and with the new customer handoff feature, it now offers absolute privacy for camera feeds and recordings,” Webb said. “With notifications and integrator access controlled through the powerful OvrC remote system management platform, it’s easy for integrators to give their clients full control of their footage and then to get temporary access from the client for any troubleshooting needs.”

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.