When businesses suffer a cyberattack or a data breach they have to worry not only about direct losses, but the fines and lawsuits that might come after. In other cases, they don’t even need to experience a cyberattack to get fined by authorities for handling data improperly. Just recently, Uber was fined €290 million by Dutch authorities for alleged GDPR violations.
While such fines may not significantly impact tech giants, they can be devastating for small and medium-sized businesses. These penalties can strain finances, damage reputations, and even threaten a company’s survival.
“Cyberattacks are a constant threat, and the financial repercussions can be significant,” says Andrius Buinovskis, head of product at NordLayer. “Fines and lawsuits that come after can overwhelm an organization even more. Companies have to invest in cybersecurity products and insurance to protect both their data and their bottom line.”
What fines businesses pay for non-compliance and data breaches
Businesses face substantial fines for non-compliance and data breaches across various regulatory frameworks. Under HIPAA, fines range from $50 to $50,000 per exposed medical record, with a $1.5 million annual cap. Severe violations can even result in prison sentences. The GDPR imposes fines up to €10 million or 2% of global turnover, whichever is higher.
While ISO 27001 certification doesn’t guarantee immunity from fines, it significantly reduces risk and demonstrates an organization’s commitment to information security. By implementing recommended security controls and best practices, companies not only lower the likelihood of data breaches but also show proactive compliance efforts.
PCI DSS non-compliance can result in monthly fines ranging from $5,000 to $100,000, depending on transaction volume and duration of non-compliance. However, compliance alone doesn’t ensure total security. In the event of a data breach, companies may face fines of $50-$90 per affected customer, not including potential lawsuits.
How to build a cybersecurity compliance plan
Building a cybersecurity compliance plan is crucial for protecting sensitive information and maintaining trust. While regulatory requirements vary by industry and location, a systematic approach can help organizations navigate complex compliance landscapes effectively.
Buinovskis explains that the process begins with establishing a dedicated compliance team with expertise in cybersecurity risk assessment. The team should conduct a thorough risk analysis, identify information assets, assess risk levels, and determine potential impacts.
“Implement security controls based on your risk assessment,” says Buinovskis. “This may include data encryption, network firewalls, password policies, access control, incident response plans, employee training, and cybersecurity insurance. Finally, maintain active monitoring to revise and improve your security measures, identify new risks, and respond promptly to emerging threats.”
For more information: https://nordlayer.com/
