It’s virtually impossible to run a small business in 2024 without maintaining a volume of sensitive customer data. Most notably, home service companies tend to have files related to customer credit cards and other payment information. Naturally, keeping this data safe, secure, and private is a top priority.

But what happens when that data is breached? This is by no means a hypothetical. On the contrary, cyberattacks are incredibly common, with nearly half of all small businesses reporting at least one instance of breached security. About a quarter of small businesses say they have been hacked more than once.

You may wonder: Why would hackers come after my customers’ data? How could it possibly be valuable to them? The short answer is that data is valuable to you, and its loss can be detrimental to your business reputation. For this reason, hackers might target your home service company, stealing your data in an effort to extract a ransom.

While such instances can be calamitous, there are steps you can take to communicate well with your customers, reassuring them that you’re doing everything you ought to be doing to make things right. And by showing grace and steadiness during a crisis, you can ultimately fortify trust, rather than lose it.

Tips for Responding to a Customer Data Breach

In the event of a customer data breach or a similar cyberattack, these are the guidelines you’ll want to keep in mind.

Make Sure the Breach is Contained

First and foremost, make sure the underlying issue is dealt with properly, and that you temporarily shut down any compromised networks or IT systems in order to prevent further access from unauthorized parties.

Assess Scope and Impact

It’s important to have a clear sense of just how much customer data was breached. Working with an IT service provider as necessary, understand the scope of the problem and the breadth of data affected.

Communicate with Customers

When it comes to communicating with your customers and clients, it’s critical to move quickly; address the issue as promptly as you can. In doing so, make sure you convey:

• A clear and concise summary of the incident, including types of data affected.
• A quick rundown of the steps you’ve taken to address the issue and to prevent further loss.
• Steps or tips for customers wishing to take every precaution with their own data; for example, an exhortation for customers to create a new password or to keep an eye on their bank accounts.
• Ways customers can seek support, such as a dedicated helpline or online resources related to data loss.

Learn from the Incident

It’s critical to view any data breach as a learning opportunity. That is, be sure to review the vulnerabilities that led to the breach and take steps to better prevent fraudulent activity in the future.

Be Ready for the Possibility of Compromised Data

Data breaches are a real threat to small businesses everywhere. Make sure you’re doing everything possible to prevent them, and make sure you know how to respond, if and when the time comes.