Small Businesses More Vulnerable After Target Breach
Within the midst of the more than 70 million consumers that were impacted by the massive hacking of credit and debit card account numbers and theft of personal data through retailer Target Corp. were small businesses – that likely have much more to lose.
While hard figures are not readily available on the number of actual companies that were affected by the breach, according to Chargebacks911, a Tampa Bay, Fla.-based dispute mitigation company online retailers are drawing a $279 loss for every $100 of fraud loss, partially attributed to chargebacks and their associated costs.
Besides financial losses that can stem from a breach, businesses may also face consumer and class action lawsuits, said Mike Angelinovich, CEO of OHVA Inc., a security service provider in San Jose, Calif. Likewise, Reputation is also at stake, he emphasized.
“Businesses have so many accounts, it’s more difficult to monitor and once they determine a fraudulent hit, it becomes much more costly to notify customers, cover costs to address customer credit bureau activity and then put in place additional security enhancements,” Angelinovich said.