Know the Risks: Insider Threats To Customer Data & Personally Identifiable Information (PII)
Is your customer data up for grabs?
Customer data, also known as Personally Identifiable Information (PII), is one of the most popular targets for a cyber attack. Once a hacker gains access to this information, they can steal your company’s proprietary information and your customers’ identities at the same time.
The repercussions of such an attack can be catastrophic for your business, especially if you’re a healthcare facility or a financial institution.
From legal fees and lawsuits to temporary shutdowns or permanent closures, compromised PII is never fun.
So, are you at risk of a PII data breach?
First let’s briefly discuss what PII is and how it pertains to your business.
What is PII?
PII refers to data points that can be used to identify an individual. This customer data comes in many forms, and you might be in trouble if it gets into the wrong hands.
- Social security numbers
- Mother’s maiden name
- Tax identification numbers
- Date of birth
- Biometric data
- Race & religion
- Location data
What Causes a PII Data Breach?
According to Risk Based Security, 60 percent of customer data breaches are caused by insider threats or security threats that originate from within an organization.
This means that your employees and stakeholders are the primary cause of a PII data breach.
To make things worse, reports indicate that the number of insider incidents has increased by 47 percent over the last two years.
While most insider threats are unintentional, they still pose just as much risk.
Now that you know the main cause of a customer data breach, let’s deep dive into the potential risks that insider threats pose to PII and how you can protect your organization against such threats.
The Risks of Stolen PII
Whether you’re a healthcare facility, a financial institution, or even an e-commerce business, compromised customer data can seriously harm your operations.
Below we’ll break down the major risks of stolen PII.
- Reputational Damage
According to a study by Ponemon, 44 percent of companies believe it takes anywhere from 10 months to over two years to restore a company’s reputation after a breach. Even if you respond promptly and properly to your customers regarding a data breach, it could still result in a PR disaster and a decline in your customer base.
- Financial Loss
The average cost of a data breach in the U.S. is $8.19 million. Some of the consequential costs that companies find themselves paying include compensation to affected customers, fines and penalties for non-compliance with regulations such as GDPR, expenses for forensic investigations and more. On top of that, the valuation of your company could tumble as well.
- Ransomware Costs
A malicious insider who gains access to your data systems can steal sensitive customer PII from your network. Once your systems are hacked, the cybercriminal can block access to your data and threaten to sell the information on the Dark Web if you don’t pay the ransom.
- Operational Standstill
Data breaches have the potential to paralyze your business operations. You will have to conduct a detailed investigation to determine what data has been compromised and the cause behind the breach. You will have to take steps to recover lost data, and you may face expensive lawsuits and settlements. In most cases, this will pause your business operations.
Now that you know the risks, isn’t it time to protect your customer data so you can avoid a data breach?
Protect Your PII Today with Third Power IT
Miami’s Leading Cybersecurity Consultants
A cyber attack can happen at any time. That’s why 24/7 data protection is so important. With cyber threats on the rise, now is the time to invest your cybersecurity.
But you don’t have to go about it alone. Secure your data and gain peace of mind when you work with Third Power IT, South Florida’s preferred IT consultants.
Set up your cybersecurity strategy today. Visit www.ThirdPowerIT.com to get started now.
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