It’s nearly impossible these days for businesses to operate without the help of Internet-connected devices, which exposes them to cybercrime. It’s the small- to medium-sized businesses, however, that are especially vulnerable: half are victims of cybercrime and nearly two-thirds of those victims go out of business.1 Hackers increasingly target small businesses because there is a low risk they will be caught and a high probability they will be successful.
Maintaining personally identifying information (PII) on a computer connected to the Internet creates a nearly unavoidable risk. More than likely, names, addresses, and employees’ employment information are stored. If PII is acquired by someone without the authority to do so, in most states that is a security breach (data breach).
Banking, credit, and vendor account information is also vulnerable. Even if that valuable information is not stored on an Internet-connected computer, employees who have access to it can be duped into handing it over to criminal actors.
Best Practices and Security Tips
Security professionals used to strive for perfect security, but today they accept that goal is unachievable. Instead, they strive for optimal security by combining best practices with a risk management program that considers purchasing data compromise and cyber coverage through a knowledgeable insurance provider.
Cyber ShieldSM from Federated Insurance is a two-part coverage program designed to help provide essential protection against many of the critical cyber and privacy exposures businesses face. Data Compromise Coverage and Cyber Coverage can help your company recover from intentional or accidental breaches. Visit federatedinsurance.com for more information or contact your local Federated representative.
1“The Impact of Cybercrime on Small Business,” Course 10, Tutorial 1, Quoting Dr. Jane LeClair, Chief Operating
Officer National Cybersecurity Institute. Online at
2The leading e-mail authentication protocols are SPF (Sender Policy Framework), DKIM (Domain Keys Identified Mail) and DMARC (Domain-based Message Authentication, Reporting & Conformance); best practice is to utilize the three protocols together.