Preventing Data Breaches/Cyber Attacks

How Does a Data Breach or Cyber Attack happen?

Data breaches normally are often not high tech. The cybercriminal is always looking for the easy way in. The weakest links are your employees:

1. Tablets, laptops, smart phones, and thumb/flash drives are prime targets. Losing or having electronic devices stolen can open up a treasure trove of protected data. Using devices where someone watches what you are doing or transmitting protected data over an unsecure wireless network can give thieves all they need to steal your information or your customers information.
2. Breaches can start with firm employees gaining access to unauthorized information. Once stolen, the rouge employee uses the information to extort or steal client data and/or money.
3. Phishing e-mails, text messages or phone calls have employees voluntarily giving away passwords and logins.

A little higher tech breach starts with a system user opening a suspicious e-mail, document attachment, or visiting a malicious website. This allows the cybercriminal to install malicious system code or gain access to your systems.

However it happens, this potentially exposes your organization to a ransomware demand or having funds electronically sent to a fraudulent 3^rd party.

Prevention is always the best medicine:

1. Training employees in proper system protocols.
2. Keeping current with operating systems and application software updates
3. Having up-to-date antivirus/data breach software installed system wide.
4. Practicing good computer habits, i.e., changing passwords and using complex passwords or not opening suspicious emails/ text messages.
5. Separations of duties
6. Require “trusted” employees take annually vacations of more than a week.

If prevention does not work, Data Breach/Cyber Liability Insurance should offer 1^st party and 3^rd party coverage. It needs to respond to the following exposures:

1^st Party Claims

1. Incident Response Services
2. Ransom demands unlocking your system.
3. Notification requirements costs from federal & state laws & regulations to your clients that have suffered a data breach
4. Forensic audit determining the extent of the data breach and possible who is the bad actor.
5. System assistance in restoring your systems and data
6. Loss of income for the time that it takes to recover from a data breach
7. Harm to reputation & goodwill
8. Crisis Management and public relations costs

3^rd Party Claims

1. Damages to clients because of the data breach
2. Cost of defense to defend you from these claims
3. Regulatory Violations, fines and penalties assessed against the firm.
4. Paying for credit monitoring

Request a Cyber Liability Quote

Contact Me Today
Lee Norcross, MBA, CPCU
California License # 0D87292
    L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080