b'A DATA BREACH CAN COST YOUR JEWELRY BUSINESS MILLIONSWas this the first breach at your organization?2. Crisis management and customer notificationIfyouhavehadadatabreachinthepast,thefinesand penalties associated with subsequent breaches may rise andYoull need to notify your customers of the breach and monitor createadditionalcosts.ThepunitivedamagesareaimedtheircreditandID.Additionally,toprotectyourbrand,its atencouragingorganizationstobolstertheirdatasecuritystrongly recommended that you ramp up your public relations practices to avoid having a breach occur again.and customer care efforts. This includes staffing a call center, responding to email inquiries, and analyzing how your future Did you store your data in a centralizedmarketing strategies will manage this negative incident.system or location?Storing your data in a centralized location is not just a good 3. Regulatory fines and penaltiesbusiness management practice, but it will also save you time andmoneyintheeventofadatabreach.DatastoredinBoth state and federal punitive damages vary based upon the multiple places makes it more difficult to determine the sourcecircumstances of your breach, but either way, you will most and scope of the breach. likely be held liable in some way. If your business has been breached in the past, these fines and penalties could increase Do you suspect fraudulent activity? significantly.Anysuspicionforfraudulentactivity inregardtoimproperlyusingyour4.4. Legal defense data after the breach has occurred will eventually lead to higher costs for yourHasdefendingalawsuiteverbeenviewedasaffordable? business,asmorelegalactionwillbeWhile a good lawyer is important to have in these situations, required.Additionalinvestigationmayits critical to remember that this wont just be a flat fee whether also be needed to determine the motiveyouve had 100 or 100,000 records compromised. The cost of behind the fraud and what the criminals were trying to doorthe defense will rise as the number of breached records rises, could have donewith the data. since it will require more resources to defend the extra records. Protecting Your Business Starts HereCould a class action lawsuit to be filed?Onceagainassumingthattheworst- Astechnologychangeseveryday,yourdatamanagement case scenario has happened and all ofpracticesalonemaynotbeenoughtokeepyourbusiness your data has been compromised, a classout of harms way. Visit JewelersMutual.com or call us at 800-action lawsuit seems likely. In the event336-5642 ext. 2118 to find out how an insurance policy from that one is filed, this has the potential toJewelers Mutual Group provides protection against cyber risks.be the most costly part of the breach. In aday-and-ageofplaintiff-sympathetic*Cost of a Data Breach Study. https://www.ibm.com/security/data-breachjurisdiction towards these types of crimes, its not unreasonable that your business will be found liable rather quickly.The overall costs of a data breach can fluctuate dramatically depending on how you answered the previous questions. In general, these four costs will give you an estimate of the totalLarry Spicer Vice President, Loss Prevention and Risk outcome. Management Services, Jewelers Mutual GroupLarry Spicer joined the leadership team of Jewelers Mutual Group as the vice president of 1. Incident investigation Loss Prevention and Risk Management Services in 2019. Larry has over 20 years experience as a security professional, having held leadership Remediating your security and being compliant with the electronicpositions at Aurora Healthcare, Home Depot, and Kohls. Most recently he was the Director, Public discovery process will create the bulk of these costs, but youllSafety at Aurora Healthcare in Milwaukee,also be liable for a forensic investigation. Also, to comply withWI, responsible for the development and implementation of security strategies and procedures to safeguard over 70,000 team members. state and federal laws, youll need legal guidance to navigateLarry maintains Jewelers Mutuals high level of loss prevention excellence through the process, regardless if a lawsuit is filed or pending.and puts commercial lines policyholders first. 18 | The Jewelry Business Magazine'