Millions of pieces of Personally Identifiable Information (PII) are compromised each year due to data breaches, theft by an employee, or loss of data by the company. According to a recent study conducted by Ipsos Reid, 69% of small businesses do not believe that a data breach could result in a significant financial impact or harm to their businesses reputation.
This study also found that:
- 40% of small business owners do not have protocols in place for securing data, +5% from last year
- More than 1/3 of small businesses report that they never train staff on information security procedures
- 48% of small businesses do not have a dedicated person responsible for management of data security
Compounding the issue are the steps that need to be taken in the event of a data breach, theft, or loss. When a merchant suspects a data breach, they must inform the proper authorities through a complex web of reporting regulations. In a very short period of time, reporting must be completed with local, national, and international governing bodies, in addition to the card networks. State regulations vary between states, where federal law applies, it preempts what individual states require. The process is complex, time-consuming and difficult, but failing to comply is a crime that can lead to civil or criminal sanctions, or even prison time.
With 70% of level 4 merchants out of business within two years of a breach or suspected breach, an acquirer’s merchants are at risk if a merchant fails to report correctly. This makes having an incident response plan for merchants to follow critically important for acquirers.
G2 recently introduced G2 Breach Reporting, which helps acquirers mitigate the liability associated with merchant data breaches and response plans. Once enrolled, acquirers can offer it to their merchants as a value-added service that can increase an acquirers’ revenue while protecting their merchants. G2 Breach Reporting handles all local, federal and regulatory breach reporting requirements within the necessary time frames. Learn more about G2 Breach Reporting or contact us to find out how G2 can assist your company.