Facebook was fined around US$5bil for violations of the FTC’s consumer-privacy rules. This US$5bil fine the biggest privacy-related fine in the commission’s history.
Facebook violated a 2011 consent decree with the commission after it was revealed last year that the company improperly shared information on millions of users with now-defunct U.K. political consulting firm Cambridge Analytica.
Violations of privacy rules can be an expensive lessons and not many companies are as cash-rich as Facebook who can afford a US$5bil fine. Apart from fines, there are many other expenses related to this breach, such as public relation exercise, system upgrade, modification, notification costs etc.
Companies that have access to massive customer’s data are favorite target of cyber criminals. In today digital era, consumer’s data and buying behaviour are very valuable. Companies that do not have strong security system would be an easy target for Hackers.
Cyber crime is now on the raise with attacks from all over the world. Thus, corporate companies should be make aware of such risk and they can fend off potential cyber risks by taking up Cyber Insurance.
Cyber Insurance should become an operation cost and budgeted, just like any general insurance such as fire insurance, good in transit, equipment all-risk etc.
The world is fast moving toward digitalisation, and with things mainly done via the internet and computer system, the need for cyber insurance is getting more important.