Internet Security Learning Center

Data Security Is No Longer an Option

Small and medium-sized businesses are being told by their larger vendors and clients that they need to upgrade their security, analysts and industry members say. This is especially true of small companies that do business with larger vendors over the Internet. Large vendors' data can be accessed or compromised by cyberthieves or disgruntled employees if smaller partners do not take security seriously enough. Scott Larsen, IT director for the small online travel site Groople, says that investing in security is not an option, it is a necessity. The company spent $55,000 to upgrade its IT security after being pressured to do so by Travelocity and Cendant. "If we want to do business with companies like Travelocity and the big hotel corporations, it's a requirement for us to meet their security requirements, otherwise we're just another small company that wants to play with the big boys but really can't," Larsen says. Some companies are improving data security by restricting employee access to customer data; upgrading firewalls; examining threats from within; and improving data center security. Security experts say that companies can also install spyware filtering programs; implement a virtual private network; and deploy technology to detect and monitor network intrusion attempts. AllBusiness.com CEO Peter Horan says, "If you want to do business with the likes of Costco or Wal-Mart, you're going to have to be at a certain level of security."

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