If the answer is yes, and you have concerns about data security or you don’t, please read this. In a recent presentation from an expert on this topic, the question of who has the risk for data loss if someone from some Asian country hacks into your system or your processor’s system. So here’s the scenario:
A hacker gets into the connection between you and your credit card processor and steals all the private data of your customers. Then after the data is sold to some other Asian country those customers – your customers – suffer a financial loss or stolen identity or both. Your customers then sue you. You file a claim with your credit card processor and just to be safe, with your insurance company as well.
Minor hassle? Maybe not. Your processor agreement may specify that they take no responsibility for data loss. Your insurance company may have a specific exclusion written into the fine print of your policy. Do you know for sure? Should you wait for an event to find out? Maybe not…
As always, I welcome your comments and feedback.