cyber insurance – Setnor Byer Insurance & Risk

Don’t Let Weak Site Security Compromise Your Business’s Cybersecurity

Setnor Byer Insurance & Risk

Small businesses spend a lot of time and money to protect their sensitive and confidential information, and rightfully so. Data breaches can lead to crippling, often insurmountable financial and reputational harm. Unfortunately, many businesses overlook the most basic security measures. Cyber criminals, for example, pose the biggest threat to data security, so most businesses focus almost exclusively on cybersecurity while paying little or no attention to physical (site) security. This can prove disastrous because sophisticated firewalls and advanced security software cannot stop someone from stealing a flash drive or paper file containing sensitive information.

According to the Federal Trade Commission, cybersecurity begins with strong physical security that effectively protects sensitive or confidential information in paper files and electronic devices (hard drives, flash drives, laptops, point-of-sale devices, etc.). The FTC offers the following tips for maintaining physical security.

Store paper files and electronic devices containing sensitive information in a locked cabinet or room to keep them secure.
Train employees to put paper files in locked file cabinets, log out of networks and applications before leaving and never leave files or devices with sensitive data unattended.
Limit physical access to records or devices containing sensitive data to only those who need it.
Keep track of documents and devices containing sensitive data so they can be handled accordingly.

To protect sensitive data stored on devices,

Require passwords that are long, complex and unique.
Require multi-factor authentication, like a password and a temporary code, to access sensitive information.
Limit the number of incorrect login attempts allowed to unlock devices.
Encrypt portable media, including laptops and thumb drives, that contain sensitive information.

Sensitive and confidential business data can be stolen online or onsite, so businesses must make physical (site) security a key component of their cybersecurity protocols. Since security measures aren’t always enough, small and medium-sized businesses should have Cyber Perils Insurance Coverage to protect against various cyber threats and liability exposures, including the cost of complying with data breach notice laws. Please contact us if you would like more information about insurance specifically designed to protect against cyber threats and data security breaches

October is National Cybersecurity Awareness Month

Cybersecurity Awareness Month was launched in 2004 to promote online safety and security. This is particularly important in 2020 because so many things took a back seat when coronavirus disease 2019 arrived. COVID-19 may dominate the headlines, but data security breaches continue to pose a serious threat to small businesses nationwide. According to the Federal Trade Commission, cyber criminals target businesses of all sizes, so all are encouraged to take advantage of Cybersecurity Awareness Month 2020.

This year’s theme, “Do Your Part. #BeCyberSmart,” is intended to empower individuals and organizations to own their role in maintaining cybersecurity. The key message in 2020 emphasizes the importance of doing your part. “If you connect it, protect it.” Small businesses can reduce the risk of a cybersecurity incident by educating employees about basic cybersecurity measures and putting them in practice. The FTC suggests various measures that every small business should have in place.

Update Software. This includes apps, web browsers and operating systems. Set updates to happen automatically.
Back Up Files. Regularly back-up important files (offline, external hard drive, in the cloud, etc.).
Require Strong Passwords. All devices should be password protected. A strong password is at least 12 characters that includes numbers, symbols and capital and lowercase letters. Never reuse or share passwords.
Encrypt Devices. Encryption protects information from unauthorized access. Any devices containing sensitive information should be encrypted. This includes laptops, tablets, smartphones, removable drives, backup tapes and cloud storage solutions.
Use Multi-Factor Authentication. Require multi-factor authentication to access sensitive information. This requires additional steps beyond logging in with a password, like entering a temporary code or providing additional identifying information.
Secure Routers and Wireless Networks. Change the default name and password, turn off remote management and log out as the administrator once the router is set up. Make sure your router offers WPA2 or WPA3 encryption, and that it’s turned on.
Train Employees. Create a culture of security by implementing a regular schedule of mandatory employee training. Update employees about new risks or vulnerabilities.
Have a Plan. A response plan should be in place before a data breach happens. It should include plans for protecting and saving data, maintaining operations and notifying customers affected by the beach.

Implementing, maintaining and updating security policies and procedures is important, but it’s not always enough. Small and medium-sized businesses should have Cyber Perils Insurance Coverage to protect against various cyber threats and liability exposures, including the cost of complying with data breach notice laws. Please contact us if you would like more information about insurance specifically designed to protect against cyber threats and data security breaches.

Did You Know…Data Breaches Exposed More Than 18 Million Records PER DAY?

It looks like 2018 is going to be a record year for data breaches…in a bad way. Gemalto, a global digital security provider, released its Breach Level Index for the first half of 2018. It revealed a mix of good, bad and ugly. When compared to the first half of 2017, the number of data breaches worldwide actually went down. Unfortunately, the number of lost, stolen or compromised data records went up. Now for the ugly. This number went up 72 percent!

During the first six months of 2018, there were 944 data breaches worldwide, nearly 60 percent occurred in North America. As a result of these breaches, more than 3.3 billion data records were compromised or exposed. That works out to 18.5 million records per day. Nearly three quarters of a million records per hour!

According to the Breach Level Index:

More than 76 percent of the records breached involved social media, including breaches at Facebook (2.1 billion records) and Twitter (336 million records).
Malicious outsiders caused 56 percent of the data breaches.
Attacks by malicious insiders fell by 60 percent.
879 million data records were lost by accident.
Identity theft remains the leading type of data breach.
The number of records stolen through identity theft breaches increased by 757 percent.
Financial access incidents decreased in frequency but increased in severity.
The healthcare industry experienced the most data breaches of any industry (27 percent).
20 percent of all breaches had an unknown number of compromised data records.
Only one percent of the compromised data records were encrypted.

Data security has become a universal concern. Every business is at risk. None are immune. This explains the growing popularity of cyber liability insurance policies. Businesses can purchase Cyber Perils coverage to protect against various cyber threats and liability exposures, including the cost of complying with data breach notice laws.

Please contact us if you would like more information about insurance specifically designed to protect against cyber threats and data security breaches.