The cyber threat against local business is increasing as attacks skyrocket. It seems like every other day we hear about another business being hit. These are usually large business. However, it’s not merely huge retailers, like Dairy Queen, House Depot and also Target, getting hacked. Simply ask Kevin Stecko, the owner of specialty Tee shirts maker 80sTees. com. In January he was notified by Discover that cardholders utilizing his site had experienced questionable purchases on their accounts. The firm immediately stopped gathering charge card information, generated a forensic examiner as well as called the Trick Solution.
This might be the greatest threat to your business and…Your current policy likely doesn’t cover cyber liability!
There are only two types of companies. Those that have been hacked and those that will be.”
— Robert Mueller, FBI Director, 2012
-FBI has given Cyber-Crime the third highest priority, behind terrorism and counterintelligence.
-Small and medium-sized businesses (SMBs) are a key target for attackers, and 2013 proved no exception to the trend. In 2013, SMBs collectively made up more than half of all targeted attacks at 61 percent – up from 50 percent in 2012. This is per Symantec.
-We have seen a shift in attached from “thrill seeking” hackers to organized criminal organizations where their job is to locate targets and hack them.
-Increasing amount of digital data = rising opportunities for criminal activity: International Data Corporation (IDC) anticipates exponential growth in the digital universe (WiFi networks, mobile devices, shared databases, other).
Typical causes of a data breach. Hacker is the largest but you can also see that many of the things can’t be prevented by a firewall or antivirus software – lost laptop, rogue employee, staff mistake for example….
There are the top five areas where we are seeing losses occur.
-Network security – These are different kinds of viruses that can get into your systems when an employee clicks on a link for example. Example – the email from someone in Nigeria that you’ve won money. Once you click the link, a virus is introduced into your network.
Employee Mistakes – Lost paper files and lost laptop for example.
Denial of Service attack – Attempt to make a network resource unavailable to its intended users.
-Social Media – Media Liability portion of the Cyber policy. Phishing – Attempting to acquire the personal information of someone by posing as a legitimate source. Spear Phishing or Social Engineering (same concept)– Targeting someone particular (CEO of a company for example).
-Hactivisim – Political activist group. A group has some kind of an issue with the politics of an organization so they attempt to infiltrate their systems.
-Cloud computing – Renting of storage space from a third party. Allows companies to access their data from anywhere. Of course this has become a big target from hackers. Companies who run these services generally do a good job of protecting information but still it is a target for criminals to potentially access large amounts of data. Reviewing of contracts is encouraged for your clients. Some have hold harmless language so they don’t take on any liability with a hack.
-A new trend that’s small companies is “ransomware” — software that locks up a computer and forces the user to pay the criminals a fee to unlock it. A similar scam is “scareware,” in which attackers pose as software security firms, warning users that their computer is compromised and prompting them to click to a malicious websites for repairs.
Also have seen earnings and stock prices affected as a result of the bad press.
This should be a real concern for any business. The good news is there is insurance available. In most instances it’s very affordable. If you haven’t had a proper review of your insurance – now would be a good time. It’s possible to not only get better coverage and lower your costs when you seek out an insurance specialists and not just a quote.
Businesses spend much time and money hiring the right employee – but, little if no time interviewing agents. We encourage you to call the Insurance Specialists Team and talk with a commercial/tech insurance specialist. It will be time well spent. They’ll let you know if you are covered for cyber liability – odds are you’re not covered.