Franchising Today - Summer 2016 - 10
Column by Sam Sammataro
FRANCHISE OPERATORS MUST BE PROACTIVE IN CONFRONTING
After all, you think,
grueling 80-hour week. Your mind
is racing with thoughts of staffing
and personnel issues, ordering supplies, meeting payroll and keeping
overhead as low as possible. In other
words, your mind is occupied with all
of the details that make for a successful franchise operator. The last thing
you want to spend time worrying over
much bigger fish are in the sea, right?
Surely, you think, the criminals are
taking aim at pockets much deeper
You might want to think again,
particularly given the threat cyber
criminals pose to smaller and medium-sized businesses. The risk of a
cyberattack is ever-present, and the
consequences can be catastrophic.
However, armed with knowledge and
a plan of action, franchise operators
can face the challenge head-on and
minimize the cybersecurity risks confronting their organizations.
The Verizon 2015 Data Breach Investigations Report listed 79,790 security incidents and 2,122 confirmed
data breaches. In addition, the forecasted average loss for a breach of
1,000 records is between $52,000
and $87,000. Although most breaches noted in the news are from large or
even national companies, a Travelers
cyberinsurance professional told a
2015 industry conference that 62 percent of cyber-breach victims are small
to mid-sized businesses.
Even confronted with statistics like
these, the National Cybersecurity Institute reports that while 81 percent
of small businesses are concerned
about cybersecurity, only 42 percent
have invested in protections against
cyberattacks in the last year. A much
smaller percentage, 5 percent, have
invested in cyberinsurance.
The Verizon 2015 Data Breach Investigations
Report listed 79,790 security incidents
and 2,122 data breaches.
With the ever-increasing threat of big
data breaches and the litigation that
often follows (think Target, Sony, the
list goes on...), big business has upped
the ante by investing heavily in sophisticated cybersecurity infrastructure and training. Unfortunately, the
same cannot be said for smaller businesses that are often understaffed in
the IT department and lack the funds
to implement enhanced cybersecurity measures.
Add to this the perception that
small businesses are too small or
don't have anything worth stealing,
and they risk becoming easy targets
for the cyber criminals looking to
steal employee and customer infor-