We are all using our smart phones more than ever these days. We virtually run our companies from them, play games with them and oh yeah make phone calls with them. With the versatility and conveniences of our smart phones it is no surprise that cyber criminals have found a way of exploiting personal information from our handy devices.

Financial Risks
Having confidential information stolen from your smart phone is a serious risk.  It can lead to breaches in your social network, bank accounts, and client information. Not only is this bad for an individual but as a corporation it can be expensive to repair the damage.
It is costly to notify contacts of the breach then rebuild the company’s image to regain customer trust. Don’t let this happen to you. Learn how to protect your business and your personal information below.

It is Easy to Protect Your Business Phone
Always make sure you are downloading apps for your phone from a reputable source. Apps found online and in the Android marketplace have not been screened for malware and can open the door to cyber thieves.

Review the customer reviews before downloading any app onto your phone. It sounds basic but could save you time and money in the long run.

Be aware when an app asks for permissions during the uploading process. Now we know this one is getting harder to avoid with every app wanting to connect to social platforms or asking for access to your phone’s hard drive. If you follow the key points above you should be safe but there are no guarantees. 

Safe Phone Browsing Habits
Now these next points are not only good to remember when browsing from your laptop but from your phone as well. It might be a good idea to go over a few of these principles with employees to make sure the phones they are using for work, don’t expose your company to hackers.

• SMS or VM Phishing – if you get a questionable texted or voice mail, call the company back directly and verify with them before handing over important information.
• Password Guard – if your smart phone is stolen or lost it can be easy for someone to get access to of social media log ins or even bank information. Keep your phone password protected. 
• VPN Entree – If you are using your smart phone to access a corporate network, use SSL VPN to connection to secure the session. This keeps the corporate information safe from prying eyes. 
• Wi-Fi Hotspot Security – Do not connect to any password protected site like social media, banking or PayPal websites while using an unsecured or free Wi-Fi Hotspot! Doing this is just asking for your personal information to be stolen.
• Utilize Security Apps – Think of the software you download to protect your computer, there are similar options for your phone. Use them to keep your phone safer. 
• Update – It seems simple but update your apps and keep your software up to date.

Now that you know how to better protect your personal information on your smart phone, pass it on. Share this with your employees and other business friends to make sure they are also protected against cellular cyber theft.

Source: The Art of Securing Mobile Devices, by Troy Gill, GPEN, Rough Notes, Pg. 44,46

A recent survey produced by Travelers Insurance brought to light the top 4 risks technology CFOs need to address. The risks listed here are thought to be Red Zone Risks or risks that 48% of participants to the survey felt they needed to take action on immediately. Not surprisingly many of the participants felt most uncomfortable when it comes to risks they cannot prepare for. But with the correct knowledge most technology CFOs can mitigate, manage, or eliminate these top 4 technology industry risks.

Risk 1-“Business decline due to economic conditions.
his risk came in as the #1 with 59% of the participants in the survey feeling their companies are not adequately prepared. Technology companies can be hit hard by a weak economy. Pressure builds when customers push to lower prices and continued to have high expectations of excellent service. There is no clear answer on how to best evade this type of risk, but preparation and having a plan of action can help.

Risk 2-“Performance failure of vendors and suppliers.”
Because technology companies are continually changing it is extremely important to stay up to date with new products and upgrades. Having a smooth supply chain is a major part of any technology company. Many CFO’s felt they had mitigated this risk by having two suppliers, but this is not a long term solution. Several tech Companies found this out first hand during the 2011 Thailand Floods, which resulted in a worldwide hard drive shortage. “This was a wake-up call for companies that do business in this part of the world,” says Mike Thoma, VP and chief underwriting officer at Travelers Global Technology Group.

Risk 3-“The ability to hire and retain quality  employees.”
Hiring and retaining quality employees is a pain felt by all businesses, but the technology industry in particular relies heavily on their highly trained employees. With many CFOs looking for qualified employees not just locally but internationally, attracting and retaining skilled individuals becomes a top priority. Unfortunately, the hiring process can be slow and finding talented employees becomes difficult in a sea of applicants.

Risk 4 – “Failure to meet targets for business/customer growth.”
Again this is something all business operators can relate too. With an ever changing business world it is becoming more difficult for tech CFOs to differentiate and grow their businesses. The leaders in this industry all agree, by recognizing the risks and giving more attention to prevention and disaster recovery, they would be better prepaid and more apt to succeed.

Hidden Risk Alert – “A false sense of security when it comes to their preparedness for cyber-related risks.”
70% of Technology CFOs who participated in this survey said “they had adequately prepared for attacks against security of their customers’ private information.”  The truth is 4 million records were comprised in 2010, and 174 million in 2011. Cyber related theft is predicted to grow according to a Verizon study on cyber security and most tech company’s false sense of safety will hurt them in the long run.

Protect Yourself from these Risks
Fortunately there are protections and coverages for all of the risks listed above. Travelers Insurance has worked to create a product that covers a wide variety of situations that involve almost all tech cyber risks. To learn more on how you can protect your company from these Red Zone Risks call Sadler Insurance.

Source: Tech Company CFOs Look Beyond Numbers, Travelers Provides insight into risks in the technology sector, by Michael J. Moody, MBA, ARM, January 2013

Many cyber criminals have recently turned their attention away from corporate networks and towards more vulnerable smartphones and tablets. Smartphones and tablets frequently hold client information such as phone numbers, mailing addresses, email addresses, confidential documents, and past emails exchanged. This information itself is prized by cyber criminals but can also assist into breaking into corporate networks. Spy software can also be implanted onto these devices, which will allow hackers to program them to send confidential information back to hacker control websites.

“Bring your own device” (BYOD) corporate policies have resulted in personally owned smartphones and tablets being connected to corporate networks. These policies have resulted in a number of vulnerabilities that resulted in the unintended release of confidential information. Blackberries have always had strong enterprise-level security features. However, their use has diminished as they are being replaced by iPhones, iPads and Androids, which are not as secure. Androids have been especially susceptible.

In addition, the lower tech incidents of lost or stolen smartphones result in many data breaches.

The following risk management techniques can be implemented:

Encrypt Data — Most android phones don’t have native data encryption and as a result third-party applications must be relied upon.

Improve Password Strength — Many mobile devices do not activate password protection features or they are too weak. 

Use Remote Wipe Capabilities — Most smart phones have the capability to wipe the data clean in the event of disappearance of theft.

Use Network Intrusion Software — Logs should be regularly checked to detect unauthorized intrusions.

In addition to the implementation of risk management techniques, Cyber Liability insurance should be purchased. The cost for cyber liability insurance is expected to rapidly decrease for smaller businesses as Cyber Liability endorsements may be added to Business Owners Policies at greatly reduced rates.

Source: The Spy Who Robbed Me, Insurance Journal, October 8, 2012

According to a survey taken by TrendMicro and Ponemon Institute in 2012:

62% don’t routinely backup data

65% don’t use encryption for sensitive data

52% store sensitive data on laptop or mobile device

72% leave their computers unattended

This survey indicates that small businesses are in serious need of Cyber Liability insurance. Stand alone Cyber Liability policies often have minimum premiums in the $2500 range and have a host of risk management requirements to protect the confidentiality of information. However, more recently, carriers have begun to add Cyber Liability endorsements to General Liability policies with premiums starting in the $350 range and with very few risk management requirements.

Source: Travelers Select Accounts, marketing emails, October, 2012