Vigilance required to combat ever-emerging risks
News broke of what is currently the biggest collection of stolen digital information to date. As more and more industries and businesses become more information-based, the information value and ease with which it is transmitted creates new risks. Criminals apparently never lack for creative ways to turn stolen data into profits, finding increasingly sophisticated ways to collect personal and proprietary information from corporate networks.
Fallout from stolen information
Failure to adequately protect sensitive information can result not only in lost sales and customers, but in claims and lawsuits for the losses sustained by customers and the general public. Fears about privacy and identity theft have resulted in state and federal legislation regarding the collection, management and protection of sensitive data. These new regulations have had a significant impact on businesses, which now face heavy fines and lawsuits in the event of security failures. Businesses also risk damage to their reputations because of laws requiring require them to publicize such breaches.
Realize the value of your information
Criminals look at corporate websites as gateways to massive information from which they can profit. While businesses spend billions of dollars to strengthen their security, criminals stay one step ahead, developing new methods of attack. Companies spend years, or even decades, gathering data. This data is an extremely valuable asset that must be protected. Businesses can no longer depend on traditional insurance policies to protect against technology risks. Most insurers exclude electronic theft from their standard policy forms. To deal with these risks, businesses need coverages specifically aimed at the inherent risks of our digital economy.
In upcoming articles I will discusses the vulnerable areas that require diligent attention by business owners, tips for improving security, and what the insurance industry is doing to help protect against these ever-evolving risks.
If you would like assistance in assessing coverage to protect your business or have questions regarding your current coverage, please call us at 800-622-7370