Pub. 4 2024 Issue 1

not maintain an incident response strategy. Lower identification and containment times provably lower the cost of a potential breach, as breaches with identification and containment times under 200 days cost organizations 23% less in 2023 than organizations who took longer to identify and contain data breaches. 3. Implement Artificial Intelligence or Automated Cybersecurity As ransomware gangs continue to rely on new strains of malware and other new technologies to infiltrate valuable data, you should familiarize yourself with the latest defense and detection technologies to develop more proactive cybersecurity systems. For example, using artificial intelligence (AI) and automation across cybersecurity threat detection and response tools can help analysts detect new threats faster and more accurately than ever before. These technologies have already proven effective for employers who fell victim to data breaches in 2023. In fact, the 2023 CODBR found that employers that extensively used AI or automated cybersecurity systems saved nearly $1.8 million in data breach costs and enjoyed accelerated data breach identification by over 100 days, on average. 4.Secure and Encrypt Data Stored in the Cloud Due to the increased number of remote workers, many employers have implemented cloud-based storage and systems into the workplace over the past several years. Given this rise in popularity, threat actors have consistently targeted these stockpiles of valuable data, including employee and consumer personally identifiable information (PII). In fact, in 2023, 82% of all data breaches involved cloud-based data, and these breaches involved higher costs and longer identification and containment times. To reduce risk, you should require multifactor authentication for employees to gain access to company networks. You should also create and maintain secure, offline and encrypted backups of your data and regularly test those backups. Moreover, you should choose strong cloud providers that adhere to strict security protocols and standards, such as the implementation of DevSpecOps application development. 5.Engage Counsel to Ensure Regulatory Compliance Businesses across the country continue to face increased data privacy requirements thanks to a wave of new laws cropping up state by state. For example, The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) may impose federal sanctions on companies that facilitate ransomware payments to a sanctioned person, even if the ransomware victim was unaware of the sanction nexus. Failure to comply with such regulations proved costly for employers impacted by data breaches in 2023. According to the 2023 CODBR, organizations with low levels of regulatory compliance suffered an average cost of $5.05 million per data breach, a whopping $1.04 million more than organizations with high levels of regulatory compliance. Fortunately, you can easily avoid this unnecessary cost by engaging knowledgeable counsel before a breach occurs to not only ensure compliance with data privacy regulations but also to put yourself in the best position to minimize such threats. Conclusion Fisher Phillips will continue to monitor further developments in this area, so scan the QR code to subscribe to Fisher Phillips’ Insight system to stay up-to-date. If you have any questions regarding how cybersecurity threats could impact your organization or best practices for addressing those threats, please consult your Fisher Phillips attorney, the authors of this Insight or a member of Fisher Phillips’ Data Security and Workplace Privacy Practice Group. https://www.fisherphillips.com/en/Subscribe.html 16 KENTUCKY AUTO DEALER

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