Are You Ready For The Costs Of A Data Breach?

With the EMV live date of October 1, 2015, fast approaching, we thought it would be worth visiting just how much a potential data breach might cost the average small business.

The information is courtesy of First Data.

• 90% – The percentage of all breaches that impact small merchants according to Trustwave Research
• $36,000 – The average cost of a data breach for a small merchant
• $20,000 to $50,000 – The cost of a mandatory forensic examination, even if you are just suspected of having a data breach
• $5,000 to $50,000 – PCI Compliance fines
• $3 to $10 – Card Replacement (per card)

Additional direct costs:

• Customers notification costs – this involves multiple forms over multiple months
• Credit monitoring costs – up to a year of credit monitoring and counseling for customers affected by a breach
• Liability for fraud charge costs – yes, the lawyers will be visiting
• POS System upgrades or replacement costs – think adding EMV ready terminals, or upgrading off of Windows XP is expensive? How about replacing your entire system – software and hardware, pending your forensic exam.
• Reassessment for PCI Compliance costs – after upgrading or replacing your POS system, before you can take credit cards again you’ll need an assessment from a Qualifies Security Assessor (QSA)

Additional non-direct costs:

• 31% – Percentage of customers terminating their relationship with merchant responsible for the breach
• Reputation damage – Digital PR lives far longer than traditional broadcast PR
• Potential loss of payment card privileges – Visa, MasterCard, and AMEX can refuse to do business with you. Are you ready to go all cash?
• Your Time – Devoted to cash draining costs and investigation vs. revenue-generating customer relationships

It’s time to call IMS now at 1-800-882-0627 to schedule your EMV upgrades and overall security readiness!