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Top 5 Most Targeted Industries For Cyber Attacks

According to IBM’s 2014 Cyber Security Intelligence Index, over 75 percent of the cyber attacks the company monitored in 2013 targeted the following five industries:

1. Finance and insurance (23.8 percent)
2. Manufacturing (21.7 percent)
3. Information and communication (18.6 percent)
4. Retail and wholesale (6.2 percent)
5. Health and social services (5.8 percent)

Every day, more than 1 million people become victims of cyber crime. Cyber criminals look for the weak spots and then attack, no matter how large or small the organization. Cyber attacks can result directly from deliberate actions of hackers, or attacks can be unintentionally facilitated by employees—for example, if they click on a malicious link.

Check out these 3 reasons why hackers love your small business:

3 Reasons Hackers Love Your Small Business-JK

 

Travelers Insurance: Insuring Technology Companies

Travelers Insurance Company has joined the ranks of other major carriers such as The Hartford in writing coverage for technology companies. Travelers Global Technology President Ronda Wescott and Chief Underwriting Officer Mike Thoma provide their perspective:

If you have a Life Science or Software and Information Technology Company and would like a review of your current insurance portfolio, feel free to contact me anytime. I can help market your coverage’s with all the major carriers specializing in this sector.

Some of the most common insurance coverage’s important to the Life Science or Software and Information Technology industry are:

  • Property
  • Commercial General Liability
  • Professional Liability (Errors & Omissions)
  • Workers’ Compensation
  • Commercial Automobile
  • Commercial Umbrella/ Excess Liability
  • Cyber Liability & First Party Data Privacy Expense
  • Directors and Officers Liability (D&O)
  • Employment Practices Liability
  • Fiduciary Liability
  • Crime
  • Kidnap and Ransom
  • Group Medical Insurance
  • Group Life and Disability

-JK

Getting Rid of Old Electronic Equipment? Destroy the Data!

Today I stumbled on a business blog post from Chubb that really grabbed my attention. This was regarding disposal of computers, laptops and any other electronic equipment that may contain personal information about employees, clients or customers. Make sure that the information has been completely destroyed!

Here’s the post……“Trashing Bytes of Information”

old computersWhen you dispose of this type of equipment, it is not enough to simply delete the information from the hard drive or format the disk. Instead, you should overwrite, or wipe, the hard drives and disks. You can do this by purchasing a wipe disk software program that conforms to Department of Defense requirements.

If you dispose of equipment without taking the proper steps to destroy the information, it could still be accessible and this may constitute a data breach. Your business may be subject to the same fines, penalties and regulatory notification requirements as if your systems had been infiltrated by a hacker.

Techniques for Removing Information

1. Deleting

Deleting information is not effective. It removes pointers to information on your device, but it does not remove the information. Do not rely on the deletion method you routinely use when working on your device, whether moving a file to the trash or a recycle bin or choosing “delete” from a menu. Even if you “empty” the trash, the information is still there. It can be retrieved.

2. Overwriting

Overwriting is effective on all computing devices. It puts random data in place of your information, which cannot be retrieved because it has been obliterated. There are software programs and hardware devices available that are designed to erase your hard drive, CD or DVD—but because these programs and devices have varying levels of effectiveness, it is important to carefully investigate your options.

3. Physical Destruction

Physical destruction is the ultimate way to prevent others from retrieving your information. Of course, you should physically destroy the device only if you do not plan to give it to someone else. Specialized services will disintegrate, burn, melt or pulverize your computer drive and other devices. If for some reason you do not wish to use a service, it is possible for you to destroy your hard drive by drilling nails or holes into the device yourself or even smashing it with a hammer. Never burn a hard drive, put it in the microwave or pour acid on it.

See more on this subject at: Cyber Liability Safely Disposing of Your Devices

-JK

The Risk of Internet Business

As a modern day business owner, you have likely felt the push to become more web-involved. The Internet seems to be where businesses are concentrating efforts, whether they involve revamping your website to keep up with the competition or creating social media accounts to attract a new audience. Of course, charting a new business course presents new risks. Navigating the Internet can be difficult enough when dealing with multiple accounts, email marketing and search engine optimization, but you’re also responsible for protecting the information that you store there. Cyber liability insurance may be the answer.

  • In 2008, almost 50% of businesses reported they had 1 to 5 cyber risks.
  • The most expensive cyber risk incidents involve fraud, which averages a loss of almost $500,000.
  • In 2008, the most common cyber risk businesses faced were viruses, followed by inside abuse and then laptop theft.
  • In 2012, 36% of the business industry experienced a data breach.

To understand what protection cyber risk insurance provides, you must first understand the risk you face as a business. Cyber attacks don’t necessarily occur in the ether of Internet. Cyber attacks can also include computer hardware problems, communication media errors, system backup and operating system errors and even errors and fraud invoving internal people like system administrators.

A company can face three common types of cyber risks:

  • Natural: The most common errors and losses result from severe weather. For example, a lightning strike or power surge can severely damage or destroy an entire database.
  • Human error: These unintentional acts can involve something as simple as leaving a laptop that has access to patient medical records, at the airport.
  • Intentional: This involves illegal criminal activity and can occur outside the organization, by hackers or criminals, or inside the organization.

No matter what kind of cyber attack you experience, the consequences of an attack can be expensive. In addition to retrieving information and establishing new cyber protocols, many companies have to perform clean-up efforts with a customer base. Cyber liability insurance can help with each step of recovery.

Source: Trusted Choice

-JK

Detroit Hospital Laptop Stolen With Personal Information

Henry Ford Health Systems in Detroit, MI notified patients of a possible security breach this week after a laptop was stolen out of an unlocked medical office on September 24th. Hospital representatives said although the password was protected, there is a possibility some personal patient information could be at risk.

The laptop contained patient information related to prostate services received between 1997 and 2008 and included some but not all of the following information: Patient name, medical record number, date of birth, mailing and e-mail addresses, telephone number, treatment and doctor visits. No Social Security numbers or health insurance information were stored on the laptop.

So, what does this have to do with my business?

Hospitals and medical offices are not the only organizations exposed to this type of loss. When you consider the massive exchange of data with portable devices like smart phones and laptops, and easily assessable web-hosted data systems and servers, there is a ton of data being transmitted through cyberspace. Throw technically sophisticated computer hackers into the mix and a whole new recipe of liability for your organization comes into focus- Cyber Liability.

Although you may have a general liability insurance policy to protect for company from bodily injury or property damage claims, traditional liability policies do not address internet exposures and the risks involved with internet business. That is why you must consider Cyber Liability Insurance. Cyber liability insurance policies can include:

  • Coverage for any negligent act, error or omission by an insured that results in the improper dissemination of nonpublic personal information due to the unauthorized access or unauthorized use of an insured’s computer system.
  • Coverage for any negligent act, error or omission by an insured resulting in the unauthorized access or unauthorized use of the computer system
  • Coverage for any negligent act, error or omission resulting in the wrongful publication, defamation, slander or libel, product disparagement or other tort related to disparagement or harm to the reputation or character of any person or organization in an insureds Electronic Content or Advertising

Hospital or not, your business may be exposed to cyber liability claims if you do any business on the internet, or in this case, use portable devices like smart phones and laptops to conduct business.

JK

Cyber Liability Insurance – New Technology Means New Liability Exposures

The internet has changed the world over the past 15+ years. Almost daily, I am amazed about some cool new website or program that comes along which affects the way we do things in our lives. People and businesses alike are being transformed by technology and the internet. It’s an amazing progression, but as businesses continue utilizing new technology-based processes, they may not be aware of the emerging risks that could potentially threaten their bottom line. The Internet has yielded a whole new assortment of liability exposures which means anyone with a website now has additional legal liabilities to be concerned about. Creating a website is simple in comparison to the exposures that come along with having one. Companies on the web face liability exposures that are emerging, evolving, and complex.

Consider the following scenarios:

  • External hackers gain access to your computer system and steal credit card information, SSN’s, or bank account information
  • An internal employee mistakenly posts the names, addresses and SSN’s of your customers on the company homepage
  • One of your employees inadvertently passes along a virus or other type of malware
  • A rogue employee posting on a blog, social media page or discussion forum can make your company liable for slander or defamation

These are just a handful of examples of where your business could be exposed. Although you may have a general liability insurance policy to protect for company from bodily injury or property damage claims, traditional liability policies do not address internet exposures and the risks involved with internet business. That is why you must consider Cyber Liability Insurance.

Cyber liability insurance can be tailored to the needs of your business. Cyber liability insurance policies may include:

  • Coverage for any negligent act, error or omission by an insured that results in the improper dissemination of nonpublic personal information due to the unauthorized access or unauthorized use of an insured’s computer system.
  • Coverage for any negligent act, error or omission by an insured resulting in the unauthorized access or unauthorized use of the computer system
  • Coverage for any negligent act, error or omission resulting in the wrongful publication, defamation, slander or libel, product disparagement or other tort related to disparagement or harm to the reputation or character of any person or organization in an insureds Electronic Content or Advertising

Businesses that get drawn into claims often have to deal with crisis management after the fact, so a cyber liability policy may also extend supplemental coverage for costs incurred in connection with a data privacy wrongful act to pay for a public relations firm, law firm or crisis management firm to maintain or restore confidence in an insured.

The bottom line is this: like it or not, the internet is here to stay. Some experts believe cyber liability insurance will become the norm for businesses, along with other common insurance types, such as property, general liability and workers compensation insurance. If your company is on the web, strongly consider making Cyber Liability insurance part of your insurance program.

-JK

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