In this age of technology most businesses have some form of a computer system with laptops, tablets, and servers. The Cannabis industry, like traditional businesses, collect data to determine how to serve their customers better. In some instances businesses collect data to ensure their employees have quality working experiences. If that data is valuable to you as a cannabis business owner, it is also valuable to those who may not have such positive intentions. Cyber security is a field that is growing every day as technological advances are made. With more and more businesses storing data electronically, including the cannabis industry, cyber security is just as important for cannabis business owners.
Companies as big as Macy’s, Bloomingdale’s, and Reddit have all had their cyber security breached. There are countless other small businesses across the world that are not reported in the media but that have fallen victim to this type of crime. Data breaches can result in the loss of millions, even billions, of private records and sensitive data, affecting not only the company that was hacked, but also the individuals whose personal information may have been comprised. There are multiple types of cyber security attacks and all of them yield similar but different results.
When businesses are attacked, information such as names, addresses, and email addresses are stolen along with payment information. Its not hard to see why consumers and businesses alike would be disturbed by a cyber security failure. Payment and personal information is not the only concern as medical records are also under attack. Health insurers, federal departments of health, and hospitals have all been attacked by hackers searching for information. The United States takes private medical information very seriously and exposure of this type of information violates the public trust.
At least 16 separate security breaches occurred at retailers from January 2017 until now. Many of them were caused by flaws in payment systems, either online or in stores.
Data breaches are on the rise for both retailers and other businesses.
A recent report published by cybersecurity firm Shape Security showed that 80% to 90% of the people that log in to a retailer’s e-commerce site are hackers using stolen data. This is the highest percentage of any sector.
These data breaches are a real danger for both companies and customers and can affect the trust shoppers have in brands.
According to a study by KPMG, 19% of consumers would completely stop shopping at a retailer after a breach, and 33% would take a break from shopping there for an extended period.
If your company stores private information on a computer or a server, your company is legally liable for the protection of this personal information. Cyber Security or data breach insurance protects business owners from legal liability resulting from this type of breach, whether the data is leaked electronically or by some other means such as a paper file. S2S Insurance specialists Eric Rahn strongly urges all cannabis businesses to have a strong cyber security network and to invest in data breach insurance. The rate of cyber attacks on businesses is rising each year and as a businesses owner you don’t want to find out your firewall was not enough and you don’t have the right coverage to cover the losses.