July 8, 2015
It seems like every week we hear about another major data breach. But it’s not just large retailers that are being targeted. In fact, most cyber-attacks are targeted at small businesses. The reality is that small businesses – nonprofits included – are targeted because they’re less likely to have the kind of sophisticated cyber protection and safety protocols large companies have in place.
Why would hackers attack charities and nonprofits? Nonprofits generally store sensitive information such as volunteer and donor data including bank accounts, credit card and social security numbers on their computer system. Hackers can more easily gain access into a less protected computer system and sell them to identity thieves on the dark web. Hackers won’t necessarily know how many or the value of your records, but if they can gain access to your network, they can find out.
Even if your organization has the latest firewalls and cyber security, the threat can come internally from employees or volunteers. They may have direct access to donor records and more. If just one employee is lured by the temptation of easy money, it could have devastating consequences to the organization. According to Experian’s 2015 Data Breach Industry Forecast, employees and negligence will continue to be the leading cause of security incidents in the next year.
The consequences of a data breach can be devastating:
Notification. It starts with informing all of your members, employees, volunteers and donors. Most small businesses and non-profits do not have the resources or plans in place to respond to data breaches and may need to hire a public relations firm to help react to negative headlines in the press.
Time. A data breach diverts attention from the daily activities of running an organization to the process of recovering from the event. If your time is normally devoted to serving your members and overseeing operations, you can expect to delegate that work to others while you (and perhaps other employees) respond to the breach.
Financial cost. In addition to the loss confidence by donors and members, a data breach can be quite costly. The University of North Carolina said a 2013 data breach of just 6,000 records has cost the school nearly $80,000 in working with affected parties. The external costs to date include notification letters, credit monitoring and operating a call center.*
In the coming weeks we will provide more insightful articles on our website about data breaches and how we can help you prepare and respond. Look for our next article: “Are You Prepared for a Data Breach”
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First Nonprofit has saved us so much money over the state’s program. We had one little glitch with the state recently and we contacted FNP immediately. FNP staff called us back immediately and moved to remedy the problem.
First Nonprofit has been a great partner. They have helped us saved hundreds of thousands of dollars! They have awesome resources for our nonprofit organization. Thanks for the partnership.
Life is certainly busy these days but having business partners like First Nonprofit has made some of the process hassle free. We have worked with this team for years. When we changed payroll systems, they outlined every step. I think this team is terrific and I know they get the job done! Thank you, Cruz, to all the team at FNP.
FNP has helped our agency to save thousands of dollars every year on our unemployment coverage. The service is phenomenal, and we are thankful to their team as our partner. My experience working with Marshall on the advocacy around UE for nonprofits was also a highlight as someone who teaches advocacy and lobbying for nonprofits. Really, your whole team is top shelf, so thank YOU!
Chicago Children’s Theatre has greatly benefited from our partnership with First Nonprofit, and I have always enjoyed working with the staff on our filings and any complicated questions. I would not hesitate to recommend First Nonprofit to fellow nonprofits. We’re very happy customers.
FNP is a great resource for Daniel Kids. To have a TPA that we can count on to take point on not only managing our unemployment claims, but to support and guide any protest hearing, is invaluable. All the professional support staff we have worked with have been excellent, very knowledgeable and responsive. We are grateful for the help and support, thank you.
When I first began in my position at my organization, I hadn’t had experience working with a company like FNP. The staff was so patient and helpful in helping to explain the benefits of First Nonprofit. Anytime I reach out with a question I receive a quick, clear, and thorough response. I’m so thankful that we decided to partner with FNP. Their excellence in customer service, coupled with their variety of packages frees us up to truly serve our staff and community with a peace of mind knowing that our organization is protected against unanticipated unemployment insurance expenses.
First Nonprofit gets an A+ in my book. You are so easy to work with & very knowledgeable! Whether it is my quarterly correspondence with Kim or my random interactions with Dawn about a bond … I am so pleased that I get to work with such a helpful company. Thank you!