Earlier this month, Cannabis Business Times reported a data breach that exposed 30,000 customers of multiple American cannabis dispensaries. The point-of-sale software THSuite was impacted, exposing thousands of customers’ data.
As a result, this left us at Full Spectrum Insurance thinking a lot about cybersecurity and how cannabis and hemp business owners can protect themselves.
“Cybersecurity threats to business owners of retail hemp and cannabis operations are serious,” said Full Spectrum CEO Michael Peters. “30,000 customers were just impacted by a large breach linked to a single point-of-sale software company. That’s huge.”
For that reason, Full Spectrum offers comprehensive cannabis and hemp business insurance plans that cover cybersecurity and data breaches.
Mashable was the first to report the data breach. The data was stored in an unencrypted location—a startling oversight by a company that should be implementing major security measures.
Over 85,000 files were leaked, including full names, birth dates, addresses, medical ID numbers, and more.
“Don’t wait until you have an issue,” said Full Spectrum VP of Sales Lexy Levin. “The average cost of a data breach for a small business is a staggering $30,000 — and the costs increase exponentially with the size of the business.”
As a relatively young industry, cannabis and hemp companies are especially at-risk for being hurt by data breaches.
Beyond customer-facing businesses, cyberattacks can damage cannabis and hemp companies in other ways. Denial-of-service attacks and stealing financial information are common data security issues.
Companies should be vigilant about protecting their data and online information. Best practices include robust passwords, multi-point verification, and encrypting sensitive data.
To learn more about Full Spectrum Insurance’s data breach protection, schedule a free consultationAs