Taking steps to protect data in your possession can go a long way toward preventing a security breach. Nevertheless, breaches can happen. Here's how you can reduce the impact on your business, your employees, and your customers:

• Have a plan in place to respond to security incidents. Designate a senior member of your staff to coordinate and implement the response plan.
• If a computer is compromised, disconnect it immediately from the Internet.
• Investigate security incidents immediately and take steps to close off existing vulnerabilities or threats to personal information.
• Consider whom to notify in the event of an incident,both inside and outside your organization. You may need to notify consumers, law enforcement, customers,credit bureaus, and other businesses that may be affected by the breach. In addition, many states and the federal bank regulatory agencies have laws or guidelines addressing data breaches. Consult your attorney.