As technology progresses, so do the risks and threats associated with it. Cyber liability is an up-and-coming problem that you need to know, especially if conduct business online, which almost everyone does. Cyber liability is the risk that a company incurs when it engages commerce or business over the internet and through other networks. Risk can also be attached to the use of electronic storage technology of payment information or other sensitive information. In this article, we’ll discuss the trends in attacks and breaches over time, insights into who is carrying out these attacks and the motive behind them, the impacts this crime has on businesses and consumers, and ways in which businesses can offer protection to both themselves and their clients.
Trends in Attacks and Breaches over Time
Cyber attacks can be categorized, broadly, into three different groups: cyber spies, cyber criminals, and cyber activists. For this article, our concern is with the second: cyber criminals, as those are the ones targeting companies and stealing financial information. Threats are evolving and becoming more sophisticated, and according to CBS, there are 1.5 million cyber attacks per year. Monetarily, the statistics are even grimmer: the FBI has totaled the amount of money lost to cybercrime at a whopping $781 million. 7% of US organizations reported a loss of $1 million or more, and 19% reported a loss of $500,000 or more due to attacks. Data breaches that steal consumer information are up 62%, and 43% of companies reported a data breach where hackers targeted their clients’ personal information.
Insights into Who’s Carrying Out these Attacks and Why
Cyber attacks are often carried out by foreign criminals, but the majority of spam, malware, and viruses are produced by the US. According to Forbes, many cybercriminals work in countries such as China, Brazil, or Russia, where tech jobs aren’t always available even if the individual has an education. With a degree in computer science, they can either be unemployed and poor or work in an illicit industry and make a large profit.
According to a former police officer, IT specialist, and author of the book Scene of the Cybercrime, Deb Shinder, cybercriminals aren’t always easy to profile. Their motivations range from money to thrill-seeking, and oftentimes, those two motives are conflated. The rationale behind the crime isn’t easy to pinpoint either; often, these cyber criminals have a skewed perception of their position in the world and feel entitled to the profits of business, even though they’ve had no part in earning them.
Impacts on Businesses and Consumers
The impacts of this crime on consumers and businesses are, as you can imagine, devastating. In addition to the statistics on monetary damage shown above, controlling and fixing the situation can cost a large amount as well, both on the part of the business and the consumer who was targeted. The business also loses reputation and, consequently, sales, as they have the proverbial “Red A” marked their chest that warns consumers that the company is not secure enough to work with. Target, a massive retailer, is an example of this. Target had a data breach that affected 40 million credit cards from a little under 2,000 stores across the country. Hackers went through Target’s POS system to get the information, and Target had an uphill battle restoring consumer confidence and scrambling to fix the scandal before it got any worse. While the succeeded in doing so, it required a tremendous amount of money and manpower.
Ways Businesses Can Protect Themselves & Their Clients
Dismal as these statistics and case studies may be, there is hope: you can protect yourself from cyber crime through diligence, caution, and good software systems that are designed to protect your business from being attacked. Cyber liability insurance is another must-have in this day and age. Cyber liability insurance offers coverage in the event of a cyber attack, particularly coverage for defense costs as a result of a claim due to a breach of privacy. This insurance will provide risk-management for your business in the event of the worst-case scenario.
If you’re a victim of cyber crime, you don’t have to become a statistic; nor do you have to lose your business or clientele. With these types of attacks on the rise, cyber liability insurance and protection is an extremely important safeguard.
some basic considerations will go a long way such as maintaining good computer habits: i.e. use a firewall; install and maintain anti-virus software; use strong passwords and change them regularly; and limit network and physical access.
In addition to improving security health organizations need to consider specific insurance. Data breaches are not adequately covered by general medical malpractice insurance contracts, like Oros Risk, which tend to have modest provisions for cyber liability and data breaches, but these protections do not approach the potential cost to business and consumers. Consequently, it is important that organizations have adequate cyber-liability insurance. Standalone insurance policies with sufficient limits are both available and relatively affordable; and if a data breach occurs, the policyholder works with a data-breach coach who coordinates a rapid response. Some policies also cover fines and penalties and protection from third-party lawsuits but these are rare if a rapid response is well coordinated. The policyholder can purchase varying coverage limits dependent on the need of the organization.
Breaches of health information can have serious consequences for both providers and patients. The effort and expense associated with investigation, forensics, mitigation of damages, lost good will and reputation, billing problems, and monitoring and untangling consumer credit are significant and can have far reaching effects for all parties. Patients concerned about security may be less willing to disclose important health information, and breaches of medical PII can lead to medical identity theft, incomplete medical records, and physical harm to the patient. Clearly, the breach and misuse of medical PII, or even the perceived risk of breach or misuse, can cause physical as well as financial harm to both clients and the organization. Organizations should ensure they communicate with patients and should emphasize that the organization places a priority on the security and confidentiality of personal and health information. The organization should also back these communications with documented, ongoing efforts to achieve and maintain a culture of commitment to the privacy and security of patient data. By putting steps like these in place, health organizations can protect both themselves and their patients, and improve the quality of individual care and community health. and get into contact with a good lawyer, such as David Heil, a Walt Disney World accident attorney. For further advice on how to pursue your claim in court, either consult them for information or search for a relative article online.
Even if the injury isn’t serious, you may still receive compensation from it. This isn’t about glamour, after all. and pedestrian accidents and understand the need for designated pathways. and the name it was registered under, and any evidence you have to support your claim. As always, keep copies of any communications undertaken on the matter, including copies of your own letters and e-mails. Be sure to warn them as well if you intend to take the matter further – this both ensures you’ve satisfied your obligations and may intimidate them into paying what’s owed.
Contacting an Attorney
If you’ve not received an adequate response from the insurance company and you’re positive you’re in the right, approach an attorney and ask them for advice on how to proceed further. There are numerous law firms that also specialize in insurance law who will be willing to help you out, and most firms offer a free consultation upon the first contact. They will be able to read the policy you’ve agreed to with a lawyer’s eye, and give their advice as to how watertight your claim is.
If all is green, you’re clear to take the matter further to court. Make sure you have all the evidence previously mentioned, and follow your lawyer’s advice closely. This can make or break your claim in court.