Compromised Data Security Protection for
Merchants
Protecting your merchants. Securing their assets.
Saving their businesses—and yours.
$1.24 billion. According to the Nilson Report, that’s how
much Visa, MasterCard, American Express, and Discover lost due to
credit card fraud in 2006 alone.
What does that mean for your merchants’ businesses? Well, when you
consider that the $1.24 billion really equals 6.75¢ lost on
every $100 in credit card volume, it becomes clear just how
much they stand to lose.
It’s also clear that the major card sponsors will do whatever it
takes to protect themselves. That means enforcing merchant
compliance with the Payment Card Industry Data Security Standard (PCI
DSS) and hitting merchants with heavy audit costs and fines in the
case of a data breach. The bottom line? More money your merchants
can’t afford to lose.
That’s why we’re offering the Compromised Data Security Program
for Merchants, a new and unique insurance product from Royal
Group Services. This program is designed specifically to help your
merchants meet the expenses resulting from a suspected or actual
data breach—expenses that could jeopardize the future of their
businesses—all for less each month than you’ll probably spend on
lunch today! And remember, if your merchants can’t pay the fines,
you pay them!
The Compromised Data Security Program:
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Protects small and
medium-sized merchants. Many business owners mistakenly
believe that thieves and hackers target only large merchants
with high sales. Nothing could be further from the truth.
Thieves know that large businesses have the resources to
spend on sophisticated security precautions and instead
target smaller merchants with an ever-changing arsenal of
scams. Eduardo Perez, Visa’s vice president of payment
systems and risk, confirms; “Hackers are concentrating on
smaller merchants…that’s where we see the greatest
vulnerability.”
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Protects
merchants who are already PCI compliant. If your
merchants are already PCI compliant, congratulations!
They’ve taken a major step forward in protecting
themselves—and you—from credit card fraud. Unfortunately,
while PCI compliance provides an additional level of
security (and may even save you and your merchants from some
of those heavy fines assessed by card sponsors in the case
of a breach), it’s not enough to prevent fraud completely.
In fact, any system that relies on people-run processes is
vulnerable to breach, whether through deliberate employee
wrongdoing or an unintentional—but inevitable—human error.
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Protects
merchants from loss in three ways. The program covers
the following expenses resulting from actual or suspected
data breaches, regardless of your merchants’ PCI compliance
status and as long as the business owner is not involved in
the breach: |
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1. |
A forensic audit when a data
breach is suspected |
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2. |
Card replacement costs and
related expenses |
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3. |
Assessments and fines levied by
card sponsors for data breaches |
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Coverage for
network breaches and physical losses. The coverage
includes protection from data breaches due to network
hacking, skimming, and even physical losses resulting from
employee dishonesty or third-party theft of computer or
paper records. |
And although we highly recommend that all merchants comply with PCI DSS, the program covers merchants regardless of compliance.
To meet the specific needs of your merchants, policy limits are available from $50,000 all the way up to $1,000,000 per MID! You can
mix-and-match coverage to fit the needs of your portfolio, and there is never any deductible!
Here’s how the program works:
As soon as your merchant receives notice of a suspected data breach, three easy steps trigger the policy coverage. The merchant simply:
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1. |
Fills out an online claim form |
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2. |
Faxes the notice that
stipulates there has been a suspected or actual breach at
the merchant’s location and chooses an authorized PCI DSS
auditor |
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3. |
When the forensic audit is
complete, the merchant sends us a copy of the invoice |
That’s it. We’ll process the claim for payment and, assuming all documents are in order, the merchant will receive a check for the expenses incurred from the forensic audit (up to policy limits) within 30 days.
We’ll also pay for card replacement costs (and related expenses) and for any fines your merchant incurs (up to policy limits)—in fact, we offer the
only insurance program that pays for fines resulting from a data breach, with a $0 deductible.
Unfortunately, the reality of credit card fraud is not if, but when. Let us help you protect your merchants, their assets, and the future of their businesses—and yours.
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