Data breaches of any size can do major damage for a company down the line. From major financial loss to reputational hits it undergoes after the fallout of breach, companies have a lot to work out when consumer data is stolen. Unfortunately, it’s something that companies have to deal with at some point, especially in a world where hackers are using more sophisticated methods to steal information.
And data breaches are now hitting the everyday consumer where it hurts: their bank account. With cyber threats targeting banks like HSBC, which was the victim of an attack last fall. To help guard the integrity of the consumer and their information, privacy laws are already being passed in the United States, like in California, to protect information more intently. But while legislation is being enacted, companies can take steps to help their clients in the world of cyberattacks.
Insuring the Future
When a breach happens, there’s so much that needs to be done, namely getting the word out to customers that the bank is doing everything it can at that point to patch things up so more information is not stolen. But banks who fall victim to attacks should also be looking out for the financial loss they could undergo and protect their integrity moving forward. This can be done by accessing a bank crime insurance plan that’s specifically designed to financially protect a bank.
One such insurance plan is cyber liability insurance, which can specifically supply the support a bank needs following a cyber breach. This kind of coverage is made for companies who undergo a cyber threat of any kind and can find peace of mind knowing their company will not take a larger financial hit.
Get Real with Customers
Apart from housecleaning duties following a breach, banks need to be completely transparent with their customers. Something like this can put your bank at reputational risk, hurting prospects for work and connections with customers down the road. Companies who want to protect their well-being should get out in front of the matter and let consumers know the facts of the matter and be willing to offer information that will definitely be needed.
Patch Things Up
Another step that will help to protect a bank moving forward is to rebuild that trust they may have lost with their customers. This can be done by locking things up tighter and understanding what went wrong to lead to a breach. This is where firmer data security comes into play, as banks can redesign their security infrastructure against data breaches from those inside the company as well as hackers on the outside. This can be done by installing or upgrading a new encryption program and educating employees in the world of data security.
It may not support your bank’s bottom line, especially after becoming the victim of a financial loss, but you can offer customers who keep their accounts free data security protection. While this may be costly, it can also retain customers and be a major step toward earning their trust. Banks can work with customers to let them know they are taking things seriously and will work to fix what went wrong.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.