How to Handle a Cyber Breach and Reduce Liability
All businesses, regardless of industry or size, are at risk of cyber-attacks. To minimize the damage, it's essential to have measures in place to reduce the risk of a breach. However, since sophisticated cyber-attacks are sometimes unavoidable, having cybersecurity safeguards to limit the damage is equally crucial. Here's a simplified guide to help you understand how to handle a cyber breach effectively.
Act Immediately
Time is of the essence. After a breach, quickly determine how it happened, what information was compromised, and who is affected. Even though it can take weeks to recover completely, it's vital to notify affected individuals promptly. Informal notification can ease concerns and reduce potential allegations of delayed response. Aim to notify within three to six weeks of the breach.
Be Sympathetic
People affected by a breach are often scared and angry. When dealing with such calls, showing honest sympathy is crucial. Acknowledge their feelings and provide real information. This can turn a bad situation into an opportunity to build a stronger relationship with your customers.
Offer Protective Services
The best strategy to reduce liability is to offer credit and identity monitoring and restoration services. These services check if an individual's identity or credit information is used improperly and help restore them if needed. Even if your insurance doesn't cover these services for everyone, the cost of offering them is less than dealing with the fallout from a lawsuit.
Consider Ransom
Deciding whether to pay ransom is tricky. Cybercriminals may steal data before locking your systems, demanding ransom to avoid selling it online. If you decide to pay, involve law enforcement to ensure compliance with regulations and assess the reliability of the hackers' promises.
Fix Problems
A significant breach can attract regulatory scrutiny, especially if it involves sensitive information like health or financial data. While you can't change what happened before, you can ensure compliance with the law moving forward. It's a good practice to protect any post-incident measures with attorney-client privilege to manage the disclosure strategically.
Conclusion
Experiencing a breach is challenging, but it doesn't have to be a company-ending event. By implementing the right techniques, businesses can significantly reduce liability and mitigate the impact of a cyber breach. Acting quickly, showing empathy, offering protective services, considering ransom carefully, and fixing problems promptly are essential steps in handling a cyber breach effectively.
