Smaller firms face data theft risks; Hackers try new targets as big companies tighten security: FTC official.(News)(Federal Trade Commission)

Byline: COLLEEN McCARTHY

NEW YORK-Identity theft and data security breach incidents are on the rise, but many companies are not prepared to deal with this risk, according to an official with the U.S. Federal Trade Commission.

"This is a very serious risk that can expose you to tremendous losses,'' Leonard Gordon, New York-based Northeast regional director of the FTC, told attendees of the Eastern Claims Conference, held in New York Feb. 25-26.

Small and midsize companies are the most vulnerable, Mr. Gordon said.

"Bigger companies have gotten the message and stepped up their efforts. Now the thieves are working their way down the food chain, …