Businesses in the alternative lending space face unique
cybersecurity challenges. Whether it be social security numbers,
bank account information, debit and credit card data or other
personal information, the very information that these businesses
collect and maintain in order to conduct their everyday affairs is
the exact type that hackers try to steal each day. If a business
does fall victim to a breach, the costs can quickly pile up;
expenses can include remediation, business interruption, forensic
investigation, restoration of network operations, legal fees and of
course, reputational harm. With those costs in mind, having a
strong cybersecurity program simply makes good business sense. But
it is not just good business sense that should be on the mind of
companies that engage in alternative lending. There are both
federal and state regulatory requirements that these companies must
adhere to with respect to data privacy.
