The Delaware Corporation Service Company (CSC), which provides business, legal, tax, and digital brand services to companies around the world, experienced a data breach this week, directly affecting clients in California. Often times, digital brands establish LLC’s in the state of Delaware due to the favorable business climate they offer corporations. CSC works as a one stop shop for most brands as they perform services such as: keeping your business in compliance, streamlining operations, and protecting and promoting your brand online. However, cybercriminals were able to expose their client’s personal identifiable information due to a breach in the company’s network.
According to reports, the Corporation Service Company sent notice to the California District Attorney acknowledging the 5,678 clients that were affected by the cyber attack. The clients were made aware that not only was there an unauthorized hacker within the company’s network between the months of November through April, but the cyber criminal exposed clients’ names, social security numbers, and payment card information.
It comes at no surprise that CSC hired post breach experts in order to mitigate the damages of this breach. Based on the reports, Corporation Service Company hired two cyber security firms, PR consultants, data breach attorneys, all billing at an hourly rate. Depending on their findings, notification and credit monitoring costs could follow. Additionally, the company is implementing enhanced security measures (two-factor authentication, additional firewalls, enforcing 16-character passwords for all employees, etc.) in order to prove they are taking this breach seriously.
Evolve MGA offers cyber liability insurance that covers policyholders in the event their cloud data is hacked, lost, or stolen. If you’re interested in equipping your business with cyber coverage, head over to our website for a free cyber quote!
If you’d like to read more about Corporation Service Company’s data breach, click here.