IT security is one of a company's major lifelines. Data breaches alone cost companies nearly $160 per record, according to a 2016 Cost of Data Breach Study, and often hundreds if not thousands of pieces of data are stolen. The Trump Hotel Collection is facing the harsh reality of a data breach after it agreed to settle for $50,000 in penalties and improve its data security protocols after cybercriminals gained access to 70,000 credit card credentials, according to Computer World.
"Data breaches alone cost companies nearly $160 per record."
"It is vital in this digital age that companies take all precautions to ensure that consumer information is protected, and that if a data breach occurs, it is reported promptly to our office, in accordance with state law," Attorney General Schneiderman said in a statement. "Consumers personal information are all too often exposed to wrongdoers with ill intent. We will continue working to help protect hardworking New Yorkers from all forms of identity theft."
Investigators accused THC of not only failing to protect its customers' data from cybercriminals but also informing them about the infiltration too late. The hotel chain knew about the data breach in June 2015, but it took three months for THC to inform customers through a notification posted on its website.
Let us repeat that: It didn't reach out to customers directly. Instead, THC simply posted a notification about the IT security breach on its website, meaning it almost guaranteed a limited audience would see the message.
Further, investigators discovered that THC was hit with another data breach this past March, and the chain failed to take the necessary steps to secure its systems until April.
THC's data breach highlights just how critical it is that companies do their best to stay ahead of cybercriminals. While we understand this is increasingly difficult to do considering just how sophisticated they've become, organizations need to do everything in their power to upgrade and update their existing IT defense systems.
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