A 2025 survey of over 5,000 small and medium-sized businesses found that 46% had experienced a cyberattack. The most frequent incidents included hacking, malware, and phishing, all of which can endanger both a company’s data and its customers' personal information.
A data breach can lead to significant repercussions. Alongside financial losses, businesses face risks to their reputation, erosion of customer trust, and in some cases, closure.
One of the most effective ways to reduce risk is to avoid collecting or keeping sensitive customer information unless there is a legitimate business need for it. The less sensitive data a business retains, the less there is to be stolen.
Every business should have a data security plan centered around four key elements: physical security, electronic security, employee training, and ensuring that contractors and service providers adhere to strong security practices.
Businesses should securely dispose of documents and data they no longer require to prevent sensitive information from falling into the wrong hands; as the saying goes, "One man's trash is another man's treasure."
Finally, every business should have a plan in place for responding to a security incident before it occurs. This plan should designate a senior individual to lead the response, outline who needs to be notified—such as customers, law enforcement, and regulatory agencies when necessary—and consider seeking legal advice to effectively manage the situation.