The Rising Costs of Security in the Accounts Receivable Management (ARM) Industry

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Security is an issue for any company today, but particularly among those that house sensitive data for Accounts Receivable Management.

Cloud Computing Services

New regulatory compliance mandates, along with increasing cases of privacy violations and identity theft, add up to one thing for ARM's: the need for sophisticated systems that address these challenges head-on while still allowing companies to grow profitably.

State and federal regulations are mandating that organizations proactively manage their threat potential as well as the privacy rights of their customers. Faced with surmounting compliance costs, many organizations are choosing to outsource their Accounts Receivable Management (ARM) functions to trusted providers.

Why outsource? Many companies today simply can’t keep pace with the many compliance regulations, nor can they afford the potential fines for violating them or the loss of business that could result from a security breach.

Consider that more than 60 percent of data breaches are a result of malicious intent, according to data collected by Redspin, a provider of penetration testing services and IT security audits. Redspin also reports that a total of 225 breaches of patient health information have occurred since the interim final rule on breach notifications was issued in August 2009 as part of the HITECH Act. Those breaches represent more than 6 million affected individuals.

Additionally, data security breaches affect large and small companies alike—from recent email security breaches at Epsilon to lesser known violations that affect small and microbusinesses. In fact, 87 percent of all data breaches occur in companies with fewer than 50 employees. Whether large or small, every company must make security a primary component of everyday business.

If you don’t, you risk handing over sensitive business and customer intelligence to increasingly sophisticated fraudsters who can destroy your business. The costs can cut into your bottom line or even put some less established companies out of business. In January 2008, a database of current and past customer records was hacked during an SQL injection attack at one financial services holding company, resulting in a $375,000 fine by the Financial Services Regulatory Authority (FINRA). And with regulatory enforcement on the rise, there’s no hiding from state and federal regulators.

It’s imperative, therefore, that ARMs make data security a priority even as they embrace new cloud computing technology, Software as a Service products and business intelligence systems. With CoSentry’s managed services, ARM companies can be sure that all data vulnerabilities are adequately addressed—while also ensuring they can continue growing in the face of any new security issues that come their way.

About CoSentry

CoSentry serves as a one source provider of data center, cloud computing and managed technical services. For over 10 years CoSentry has been helping clients create and protect technology platforms to compete in today’s ALWAYS ON business environment.

Business leaders depend on CoSentry’s world-class capabilities including collocation, virtual server and storage platforms, high-capacity internet and technical help desk services to keep their businesses running – no matter what.

CoSentry has facilities in Kansas City, MO, and Sioux Falls, SD, Papillion, NE and Omaha, NE.

For more information about CoSentry, please visit their main Data Center | Colocation web site.

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Manny Quevedo
CoSentry
(402) 492-7892
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