The Impact of a Cyber Breach on a Staffing Agency > Knowing the Risks
In our last blog, we discussed the reality that staffing agencies face when it comes to cyber-attacks. Data breaches are the worst-case scenario for any agency, especially as the price to recover each record is approximately $160 each. With this staggering statistic in mind, read on to discover the risks of a cyber-attack and equip your firm with a Staffing Agency Cyber Liability Insurance policy.
Recognize the sensitive data you store.
From confidential company information to client social security numbers, there is a lot of sensitive data that your staffing agency stores. A disgruntled employee could easily exploit this information and even sell it to hackers, putting your agency on the hook for damages.
Employee cyber security literacy in safe practices should be a key element of your cyber security strategy, but it’s not enough. More than three-quarters of users who said they understood the risks of clicking on links in emails clicked on them anyway, according to a research summary by security vendor Barkly. Be sure employees know how to respond to suspect emails, says Monster.
In addition to the overt risks your staffing agency faces, there is also the aftermath of such breaches. Apart from paying fines, you’ll likely need a team of crisis management professionals to help your reputation recover. These teams typically manage the investigation of the attack, public relations, credit monitoring and informing affected clients of the breach.
Fines and penalties.
Defending and settling cyber-attack claims is expensive. Depending on the findings of a regulatory officer, you’ll have to pay certain fines and penalties for failing to take the proper precautions.
About World Wide
At World Wide Specialty Programs, we understand that staffing firms are exposed to data breaches, identity fraud and all kinds of threats to security. Our Cyber Liability coverage will provide you with protection from corruption, threats, unauthorized access and network security attacks. For more information on how we can keep your business protected, call us today at (800) 245-9653.