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Cyber Guide Real World Breaches

Data breaches of large businesses are in the news every day. Small and small to medium-sized agencies are not immune. The results can be disastrous. Communicating to your entire client base that your system which contains their sensitive personal data has been lost to hackers or cybercrime, can cripple your agency. For additional insights, see this July 2020 article from Insurance Journal on How Cyber Security Affects Agencies Facts and Stats Title In 2018, 67% of breaches hit smaller businesses, up from 61 % in 2017, and 53% in 2016. Title Cyber-attacks cost small businesses between $84,000 and $148,000, and can reach $690,000 The bottom line: Non-compliance and lack of action can have profound financial implications for your agency. Claim Types Information provided below is intended to be a standalone web page intended to drive an understanding of IAs being targets increasing call to action. Examples below are from beginning August 2019 to April 2020. Business Email Compromise (similar claims in PA & NY where insured did not know they were breached) Side note: Insurance agency did not even know that they were breached. The bad actor has sent the phishing email to Coalition from the insured's mailbox. Coalition reached out to the insured to advise them of the event. Amount Paid: $32,000 Coverages triggered: Breach response Notification: Total was $5,500. Involved, local state-wide media and posted notice on website. Notice to attorneys general and any state residents in five states. Note: This is not per-record event given the state-wide media notification. Ransomware infection of agency's Managed Service Provider (2 claims so far in California & Utah) Amount paid: Still pending. $100,000. Notification: No notification needed given the type of ransomware. Coverages triggered: Breach response, Cyber extortion, BI and extra expense Business Email Compromise (many claims CA, GA, NY, PA, ID, IL, VA, UT, TX, OH, SC, & NV: insured knew of breach) Amount paid: $174,000 (forensics, attorney, notification, and monitoring.) Notification and monitoring: $13.00 per record. (This includes notification and three-agency credit monitoring.) Spoofing insured knew of breach) Amount paid: $174,000 (forensics, attorney, notification, and monitoring.) Notification and monitoring: $13.00 per record. (This includes notification and three-agency credit monitoring.) More Guide Information 12-Step Compliance Roadmap Dive into each regulation and find resources from cyber providers and industry experts. Regulations and DescriptionsOverview cyber security regulations including Gramm-Leach-Bliley, NAIC, and NY DFS. Costs and PenaltiesWhat’s the cost of non-compliance? Understand federal, state, and other penalties. Cybersecurity Provider ListingsFind a detailed analysis of service provider who can help independent agencies comply with cyber regulations. Reviewed and organized by ACT.