Insureon Blog

Want to Cut Business Losses by Three-Quarters? Try Security Training

4. May 2015 08:11

employees sitting at a conference table

According to the PricewaterhouseCoopers 2014 US State of Cybercrime Survey [PDF], businesses that don't conduct security training (especially for new hires) stand to lose quite a bit of money if they face a cyber security incident. In fact…

In other words, training employees may cut data breach losses by nearly 77 percent!

Admittedly, this study doesn't focus on small businesses, so those numbers may not accurately describe your risk. However, they still underscore just how essential your employees are to your business's cyber security.

Why Employee Security Training Has Such a Big Financial Impact

Oftentimes, a business's employees have access to a lot of valuable information that could jeopardize the company if it fell into the wrong hands, from Social Security numbers and credit cards to medical records and intellectual property. If your employees don't know how to keep this information safe, there's no limit to how much a hacker could glean and resell on the black market if they manage to break into a business's system.

Kansas City even conducted a phishing experiment that showed how much control employees have when it comes to security. At the end of the test, 280 employees inadvertently gave up their login credentials to would-be hackers. If the same scenario happened for real, that would give outsiders 280 chances to infiltrate the entire municipal computer system.

And that's just one example.

That's not to say employees are careless or clueless when it comes to technology. Rather, they may be using technology to access work information from insecure apps or devices without really knowing the risks. Read more about that in "Dating Apps on Your Business Phone? Prepare for Heartbreach."

Can You Afford to Bypass Data Security Training?

Errors can still happen, and hackers may even defy your best defenses. Still, security training can curb financial losses to about a quarter of what other businesses may end up paying when a breach occurs. (As a failsafe, it's still a good idea to have Cyber Liability Insurance, which may help pay for the cost of a data breach.)

To help keep data breach losses to a minimum, be sure to train employees on:

For more data security tips, read the post "Avoiding a Data Breach: Lessons from TurboTax."

Tags:

Cyber Risk Insurance | Data Breach | Small Business | Small Business Risk Management | Tips for All Small Businesses

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