How can cannabis companies protect sensitive data from cyberattacks?

Cannabis businesses rely on technology for operations and compliance reporting, which creates vulnerability to cyberattacks. To protect data:• Adopt cybersecurity best practices. Educate employees about phishing and social-engineering; many breaches stem from user error.• Use strong passwords and multi-factor authentication and keep software patched.• Encrypt sensitive information and limit user access based on roles.• Conduct regular cybersecurity audits and penetration tests.• Purchase cyber liability insurance. Breaches cost an average of US$4.24 million; cyber insurance can cover data restoration, credit monitoring, and lost revenue.• Establish an incident response plan so you can quickly isolate systems, notify customers and regulators, and restore services.Investing in prevention and insurance helps protect both customer data and your reputation.

What steps should cannabis companies include in a cyberattack response plan?

The average cost of a U.S. data breach is over $4 million, and more than half of cyberattacks involve employee mistakes. A response plan should:• Define roles and responsibilities—identify who will lead incident response, communicate with regulators, customers, and insurers.• Isolate and contain affected systems to prevent further intrusion.• Notify your cyber liability insurer; coverage may pay for forensic investigations, data restoration, and credit monitoring.• Communicate transparently with customers and regulators to meet breach-notification requirements.• Conduct a post-mortem to identify weaknesses and update security policies.Regular drills and updates to the plan ensure preparedness when—not if—a cyber incident occurs.

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