SMEs Warned to Protect Themselves After Recent Cyber Attack Fines
Many SMEs are being warned of the substantial fines being introduced with the General Data Protection Regulation (GDPR) in 2018. A failure to protect confidential business data may result in a cyber attack, data breach or financial repercussion.
SME business, Boomerang Video, were hit by a cyber attack on their website in 2014; resulting in a £60,000 fine from the Information Commissioner. The business failed to take the basic steps to protect its confidential customer data which lead to hackers accessing over 26,000 customer records and using it to their advantage. Had Boomerang Video made efforts to protect its customer data with cyber insurance, they may have avoided the cyber attack.
Enforcement manager for the Information Commissioners Office (ICO) stated,
“Regardless of your size, if you are a business that handles personal information then data protection laws apply to you. If a company is subject to a cyber attack and we find they haven’t taken steps to protect people’s personal information in line with the law, they could face a fine from the ICO. And under the new General Data Protection Legislation (GDPR) coming into force next year, those fines could be a lot higher.”
There has been a recent trend in the number of cyber attacks on businesses and they can be detrimental to future business success. With this, data breach sanctions are increasing and higher fines will be introduced in 2018 with the GDPR, in a hope that all UK businesses will be better prepared for potential cyber attacks. Cyber Insurance can help protect SMEs from the risks and liabilities from data hacking and breaches.
In today's digital environment, cyber security has never been more important. Allocation of time, resources and budget are often hard for SMEs, however efforts need to be made to protect confidential data, have a plan in place for how to respond should an attack happen and take precautions against financial consequences should they arise.
For more information on how to protect your business with cyber liability insurance, contact Cyberguru for a free cyber insurance quote.