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Are you responsible for your customers’ cyber security?

On Behalf of | Jul 13, 2016 | Business Litigation

Maintaining customer records is often done online in today’s business world, and as a company owner in Houston, you may wonder what your responsibilities are regarding your possession of sensitive data. Protecting your clients from a data breach is good business, and the negative publicity from a compromised system may be a costly financial incident. However, the success of business litigation against your company may depend on what precautions you have taken.

According to Small Business Trends, your company’s liability may be determined by how easy it is for an unauthorized person to access the information in question. Even the best systems are vulnerable to hackers, but there are weaknesses you can avoid, such as software bugs caused by faulty code. Third-party integrations and poorly managed environments may also create threats, as well as access control issues.

Methods of countering these hazards include search engine registration, firewalls and anti-virus protection. If you use some process of two-factor authentication, then everyone who accesses the account may have to provide both the security code and another method of identification, such as swiping an employee card. Federal and state guidelines may also be available to help you identify best practices.

You may be able to purchase cyber liability insurance to cover the financial losses associated with data breaches, such as fines and the costs related to notifying your customers, monitoring credit and legal defense in the case of litigation. Although this information about cyber security is provided to help you understand the basics of the topic, it should not be interpreted as legal advice.


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