M A Y 2 0 2 4 7 BUSINESS solutions While data breaches at giant corporations are the ones that make the headlines, small businesses can also become victims of data breaches—and face substantial costs as a result. Small business owners who don’t make it a priority to protect their customers’ personal information could even find themselves out of operation. There are two categories of costs to consider: Hard Costs One of the largest costs of a data breach comes from the credit and debit card companies. These companies have broad powers and rights in data breach situations, especially if the business was found to not be complying with Payment Card Industry (PCI) regulations, which govern the specific security measures businesses must adhere to when they accept debit and credit cards as payment. If there’s a breach of PCI, credit and debit card companies have the right to level fines on merchants. Those agreements also entitle them to charge back any fraudulent charges that take place on customer cards because of the data breach. In addition, businesses will have to pay the costs of alerting their customers of the data breach, paying for their credit monitoring services, investigating how the breach occurred, and taking steps to ensure it doesn’t happen again. Cyber insurance can mitigate the hard costs of a breach by covering these types of expenses. Soft Costs Many businesses in these situations also experience decreased productivity because employees are understandably more focused on “putting the fire out” than on their regular day-to-day job responsibilities. When productivity suffers, sales and profits go down. Other soft costs related to a data breach include the potentially devastating damage to the reputation of the business and the trust of its community. Customers, vendors, and other colleagues may start to question their relationship with the affected business, jeopardizing its future success. Sign up for Madison Communications TechShield Security Suite to keep all of your data protected from online IT threats. To learn more, visit gomadison.com/techshield. Data Breaches are Costly for Small Businesses Who’s Minding Your Business? Chris Birdsell Outside Plant Engineer Chris Birdsell joined Madison Communications in 2001. As Outside Plant Engineer, his primary responsibilities include the design, mapping, permitting, and field work necessary to bring construction projects to completion. He also works with individuals to obtain private easements and works with government agencies regarding road projects and their impact on Madison Communications facilities. “I like the variety of the job. There’s always something different to do. I also appreciate the family atmosphere of Madison Communications,” Birdsell said. How has his job changed in the last 23 years? Birdsell replied, “The main difference is how technology, such as Google Earth and Google Maps, has helped me easily perform tasks that were once tedious and time consuming.” When not working, Birdsell has plenty to keep him busy. “I’m happily married with four great and uniquely individual kids. From March to November, my wife and I are camping most weekends and boating when weather permits. Traveling is our favorite past time, and I like to stay informed with government, current events, and politics,” he said.
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