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Author: Scarinci Hollenbeck, LLC
Date: October 18, 2017
The Firm
201-896-4100 info@sh-law.comOctober is National Cybersecurity Awareness Month, which makes it an excellent time to evaluate your company’s existing prevention and response strategies. A new study regarding the frequency of cyber-attacks should serve as motivation to also evaluate your insurance coverage.
In total, 53 percent of U.S. businesses have fallen victim to a cyber attack in the past year, according to a recent survey by The Hartford Steam Boiler Inspection and Insurance Co. (HSB). In response to the increased frequency of attacks, nearly two-thirds of companies purchased or increased their level of cyber insurance coverage over the past year. An additional 56 percent of obtained cyber insurance for the first time.
In many cases, the cyber attacks were costly. Of those that experienced cyber attacks, 72 percent spent more than $5,000 to restore or replace software and hardware and address other ramifications of the intrusion. The study further found that 38 percent spent more than $50,000 to investigate the incident and remediate IT vulnerabilities and customer impact: 10 percent spent $100,000 to $250,000, and seven percent, more than $250,000.
When businesses were hacked, the most frequent consequences were data loss (with 60 percent of companies falling victim) and business interruption (55 percent). The most common culprits of the cyber-attacks were malware (53 percent) and viruses (51 percent). The surveyed U.S. businesses also experienced distributed denial of service (DDoS) attacks (35 percent), ransomware (29 percent), cyber extortion (25 percent), and social engineering (13 percent). Not surprisingly, businesses listed disgruntled employees (a/k/a malicious insiders) and hackers as the biggest threats to their data security.
While most businesses recognize the threats posed by cyber-attacks and data breaches, studies continually show that many are not devoting the resources needed to adequately address the problem. And that’s understandable – to a point. While businesses must focus on money-generating activities to survive, they must also recognize that the cost of doing business must include adequate cybersecurity measures because a single data breach could easily wreak havoc and interrupt the very business activity necessary to survive – and even destroy the business.
Refreshingly, cybersecurity and IT hygiene need not be complicated or prohibitively costly. In fact, most of the data breach incident response investigations I’ve handled could have been mitigated, if not prevented, had simple measures been taken by the organizations targeted.
With this in mind, below are a few basic, yet valuable, principles for improving your company’s cybersecurity:
As we continually emphasize to our clients, effective data security policies and procedures are essential for businesses of all sizes. Failing to have the proper protections in place will not only hurt your company’s reputation but also may impact your bottom line.
To see how these principles translate into specific actions you can take – today – to be more secure, stay tuned for helpful, daily cybersecurity tips that can help businesses better protect themselves from cyber threats and ensure that trade secrets and personal information are not exposed and compromised.
Do you have any feedback, thoughts, reactions or comments concerning this topic? Feel free to leave a comment below for Fernando M. Pinguelo. If you have any questions about this post, please contact me or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and security, visit eWhiteHouse Watch – Where Technology, Politics, and Privacy Collide (http://ewhwblog.com).
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