When Your Company is the Target of Extortion
You might think it's the stuff movies are made of: bomb threats, product tampering, sabotage, and kidnapping.
You might think it will never happen to you because you're a small, relatively obscure company, but that could actually be what makes you an attractive target to an extortionist.
Being a victim of extortion or threats is not a factor of size, and it's not always connected to a perception of wealth.
You can become a victim for many reasons.
A small company might be an easier target than a large multinational, because the large companies are often perceived as having a very significant security force in place.
And whereas a large company might be able to weather the costs stemming from a kidnapping or product recall and negative press campaign, for a smaller company, the damage could be irreparable, which makes them more likely to give in to the threat.
The first step in protecting your company from various forms of corporate terrorism is to understand that it can, indeed, happen to you.
The source will likely be one of five types of perpetrators: - Disgruntled employees, either current or former, or someone else with a grudge against you or the company; - Criminals who are looking primarily for financial gain; - Psychotic or mentally ill individuals; - Terrorists; and - Hoaksters.
Possible scenarios include an unhappy employee who threatens to release company secrets or plant a virus in your computer if you don't take certain described actions; threats from a stranger or a fanatic to injure people or damage property if a ransom is not paid; actual or threats of product tampering; and threats to generate negative publicity if the company fails to take specific actions.
The next step is to develop a crisis management plan.
Though you certainly can't plan for all contingencies, think in advance about what steps you will take so you can react calmly and with a sense of purpose to resolve a situation.
Decide who will be in charge of what, and plan for communicating with law enforcement, the media, your customers, and your employees.
A good way to develop a plan is to meet with a crisis management consultant before anything happens; establishing such a relationship in advance may cost a small amount of time and money, but it will be invaluable if a real need arises.
Consider, too, how you will handle the costs associated with an incident.
Some of the expenses may be covered under your regular business insurance, or you may want to investigate special policies.
For example, some insurance companies offer kidnap and extortion and product tampering insurance.
The companies that survive extortion threats are usually the ones that were prepared for the "attack" well before it happened and were able to quickly and efficiently implement a crisis management plan.
You might think it will never happen to you because you're a small, relatively obscure company, but that could actually be what makes you an attractive target to an extortionist.
Being a victim of extortion or threats is not a factor of size, and it's not always connected to a perception of wealth.
You can become a victim for many reasons.
A small company might be an easier target than a large multinational, because the large companies are often perceived as having a very significant security force in place.
And whereas a large company might be able to weather the costs stemming from a kidnapping or product recall and negative press campaign, for a smaller company, the damage could be irreparable, which makes them more likely to give in to the threat.
The first step in protecting your company from various forms of corporate terrorism is to understand that it can, indeed, happen to you.
The source will likely be one of five types of perpetrators: - Disgruntled employees, either current or former, or someone else with a grudge against you or the company; - Criminals who are looking primarily for financial gain; - Psychotic or mentally ill individuals; - Terrorists; and - Hoaksters.
Possible scenarios include an unhappy employee who threatens to release company secrets or plant a virus in your computer if you don't take certain described actions; threats from a stranger or a fanatic to injure people or damage property if a ransom is not paid; actual or threats of product tampering; and threats to generate negative publicity if the company fails to take specific actions.
The next step is to develop a crisis management plan.
Though you certainly can't plan for all contingencies, think in advance about what steps you will take so you can react calmly and with a sense of purpose to resolve a situation.
Decide who will be in charge of what, and plan for communicating with law enforcement, the media, your customers, and your employees.
A good way to develop a plan is to meet with a crisis management consultant before anything happens; establishing such a relationship in advance may cost a small amount of time and money, but it will be invaluable if a real need arises.
Consider, too, how you will handle the costs associated with an incident.
Some of the expenses may be covered under your regular business insurance, or you may want to investigate special policies.
For example, some insurance companies offer kidnap and extortion and product tampering insurance.
The companies that survive extortion threats are usually the ones that were prepared for the "attack" well before it happened and were able to quickly and efficiently implement a crisis management plan.
Source...