Applications are now being accepted for the USLAW NETWORK Law School Diversity Scholarship. The program is part… Continue Reading
Cybersecurity – The New Professional Risk
POSTED NOVEMBER 18, 2015
Part 2 of 4: Keeping Customers’ Data Close To The Vest – Cybersecurity Challenges in the Retail, Restaurant and Hospitality Industry | Written by Karen Painter Randall and Steven A. Kroll of Connell Foley LLP for the Fall/Winter 2015 issue of USLAW Magazine
The recent cyberattacks on large corporations such as Neiman Marcus, Target, eBay and Home Depot have brought cybersecurity to the forefront of mainstream pop culture, as the data stolen from these retailers exposed the personal identifiable information of millions of customers. Stolen credit card data typically is posted online and sold on the black market at prices ranging from $3 per Social Security number to as much as $1,000 per bank account login. While these figures seem modest, when multiplied by the millions affected, the financial and reputational damage inflicted can easily ruin any business. In fact, once a retailer suffers a major breach, consumer confidence drops, resulting in a significant drop in profit. As the total average cost of a data breach is now $3.8 million, up from $3.5 million the previous year, the question facing companies is not only how to prevent a cyberattack, but how to position themselves to sufficiently and quickly respond to same. In the second of a four-part series touching on various professional, business and insurance sectors, this article discusses cybersecurity and compliance issues facing the retail, restaurant and hospitality (RRH) industry in today’s rapidly evolving technological climate.
TYPES OF DATA BREACHES AFFECTING THE RETAIL, RESTAURANT AND HOSPITALITY INDUSTRY
The number of reported data security breaches continues to increase while the types of breaches are becoming more diverse and sophisticated. Retail companies are often targeted by cyber criminals because they possess voluminous financial data across their chain of stores throughout the country and overseas. Often these companies are victims of Point-of-Sale malware. In general, there are three basic types of data security breaches that affect the RRH industry and lead to the compromise of a business’ data: physical breach, electronic breach and skimming. The following is a brief overview of each type of breach.
PHYSICAL BREACH, ELECTRONIC BREACH, SKIMMING AND WHAT BUSINESSES IN THE RRH INDUSTRY NEED TO UNDERSTAND ABOUT COMPLIANCE…READ MORE.