PestWorld - September/October 2017 - 24

THE COST OF A

DATA BREACH

COULD PUT YOUR PEST CONTROL
OPERATION OUT OF BUSINESS

I

BY GARY SHAPIRO

IN MAY 2017, 99 COUNTRIES WERE HIT with a
widespread cyberattack known as WannaCry,
which took advantage of a glitch in Microsoft's
Windows security. The ransomware locked the
victims' computers and demanded a ransom
payment within six hours of infection, with
periodic increases to that initial demand. This
attack caused significant financial damage to
companies and frustration for users.
Many experts predict that the WannaCry
ransomware is just the tip of the iceberg and
that hackers will eventually be able to exploit
companies' networks, data storage and customer records in an even more significant
event than this recent attack. While we await
the next big event, if you don't currently have
cyber insurance for your pest control business, you may want to consider including a
line item for "cyber breach costs" in your next
annual budget. Growing 40 percent last year
alone,1 data breaches have become a reality
for organizations large and small, who are now
learning the hard way that if you don't prepare
for a cyberattack - or have the right coverage
to back you - it will hit your balance sheet hard
and could very well bankrupt you.
No industry is immune to an attacker's exploits,
and no organization is too big or too small to
become a target. Some risk factors will make you
more of a target, and there's a chance you could
pay a higher price for a cyber breach than others.
Adding to the risk, when your employees use
24 |

PESTWORLD > SEPTEMBER | OCTOBER 2017

personal smartphones to access company information, they can expand the attack surface of an
organization, even increasing the potential for
the cost of a data breach by almost 10 percent per
year. This is because as many as 3 percent of all
mobile devices are infected with malware. With
users having an average of 50 apps per device,
they're more susceptible to phishing attempts,
hacking and password theft.
Your data store strategies are another area
of concern when calculating the cost of a data
breach. Storing your business' data in the cloud
can increase your risk of facing a costly cyber
storm. While cloud migration is rapidly expanding for the collaboration and storage opportunities it affords businesses large and small,
a third-party data host can introduce foreign
threats and exposures to your data, as service
providers can become a lucrative target due
to the amount of data stored.
Finally, the total cost of a data breach will
depend on how many confidential records
your company stores. Think about how many:
customers, employees, active and archived
records, digital and paper records you store.
There can be variations of costs due to the
mechanism of loss. For example, most data
breaches continue to be caused by criminal
and malicious attacks. These breaches take the
most time to detect and contain. As a result they
carry higher costs per record due to the need to
bring in a third party computer forensics firm.

A BREAKDOWN OF THE MOST COMMON
COSTS OF A DATA BREACH
Regardless of how many records you've got,
first party expenses are a given for any industry. Here's the breakdown of breach costs,
without a dedicated cyber policy.2
A cyber policy covers all of the following
first party expenses:
● Privacy attorney - Cost: $700/hour (est.)
Necessary to keeping the impending
forensic investigation protected under
attorney-client privilege and to iron out the
patchwork of state laws and federal regulators you'll need to comply with, engaging a
privacy attorney is your first step.
● IT forensics investigation - Cost: Average
of 55 hours; $475/hour (est.)
Currently the fastest growing post-data
breach expense, the IT forensics investigation will determine who, what, where, when
and why you've been breached and is critical
to ensuring the bad guys are gone.
● Public relations firm - Cost: $20,000 (est.)
You'll need professionals to set the strategy
on your press and mitigate any reputational
harm, both internally with employees and
externally with clients.
● Notification costs and call center set up -
Cost: $1,875 (est.)
You'll have to notify breached individuals
and provide them with access to credit card
and ID theft monitoring.



Table of Contents for the Digital Edition of PestWorld - September/October 2017

President’s Message
Employment Law 101
Safety First
Nine Legal Problems You Can Avoid
Making Safety Part of the Job
Pestworld Preview
Lyme Disease: A Clinical Look at a Multisystem Disorder
Marketing Corner: Five Steps to Nail a Media Interview
Standards: Qualitypro Charts the Future of Credentialing
Ask the Expert
The Cost of a Data Breach Could Put Your Pest Control Operation Out of Business
Membership Programs: The New Npma Health Insurance Exchange
Calendar of Events
Index of Advertisers
PestWorld - September/October 2017 - intro
PestWorld - September/October 2017 - cover1
PestWorld - September/October 2017 - cover2
PestWorld - September/October 2017 - 3
PestWorld - September/October 2017 - 4
PestWorld - September/October 2017 - 5
PestWorld - September/October 2017 - 6
PestWorld - September/October 2017 - 7
PestWorld - September/October 2017 - President’s Message
PestWorld - September/October 2017 - 9
PestWorld - September/October 2017 - Employment Law 101
PestWorld - September/October 2017 - 11
PestWorld - September/October 2017 - 12
PestWorld - September/October 2017 - 13
PestWorld - September/October 2017 - Safety First
PestWorld - September/October 2017 - 15
PestWorld - September/October 2017 - 16
PestWorld - September/October 2017 - 17
PestWorld - September/October 2017 - Nine Legal Problems You Can Avoid
PestWorld - September/October 2017 - 19
PestWorld - September/October 2017 - 20
PestWorld - September/October 2017 - 21
PestWorld - September/October 2017 - Making Safety Part of the Job
PestWorld - September/October 2017 - 23
PestWorld - September/October 2017 - 24
PestWorld - September/October 2017 - 25
PestWorld - September/October 2017 - Pestworld Preview
PestWorld - September/October 2017 - 27
PestWorld - September/October 2017 - 28
PestWorld - September/October 2017 - 29
PestWorld - September/October 2017 - 30
PestWorld - September/October 2017 - Lyme Disease: A Clinical Look at a Multisystem Disorder
PestWorld - September/October 2017 - 32
PestWorld - September/October 2017 - 33
PestWorld - September/October 2017 - Marketing Corner: Five Steps to Nail a Media Interview
PestWorld - September/October 2017 - 35
PestWorld - September/October 2017 - Standards: Qualitypro Charts the Future of Credentialing
PestWorld - September/October 2017 - 37
PestWorld - September/October 2017 - 38
PestWorld - September/October 2017 - Ask the Expert
PestWorld - September/October 2017 - The Cost of a Data Breach Could Put Your Pest Control Operation Out of Business
PestWorld - September/October 2017 - 41
PestWorld - September/October 2017 - 42
PestWorld - September/October 2017 - Membership Programs: The New Npma Health Insurance Exchange
PestWorld - September/October 2017 - 44
PestWorld - September/October 2017 - Calendar of Events
PestWorld - September/October 2017 - Index of Advertisers
PestWorld - September/October 2017 - cover3
PestWorld - September/October 2017 - cover4
PestWorld - September/October 2017 - divider1
PestWorld - September/October 2017 - divider2
PestWorld - September/October 2017 - outsert3
PestWorld - September/October 2017 - outsert4
https://www.nxtbook.com/naylor/NPMAS/NPMAS0418
https://www.nxtbook.com/naylor/NPMAS/NPMAS0318
https://www.nxtbook.com/naylor/NPMAS/NPMAS0218
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https://www.nxtbook.com/naylor/NPMAS/NPMAS0516
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