As we have discussed in many posts, the looming threat of cyber-attacks is a growing concern for all businesses. As stolen sensitive and confidential data can lead to devastating consequences for the victim, this Privacy and Network Security concern needs to be a top priority for all businesses.
Inside Counsel states that most of these data breaches fall into three categories: Those motivated by financial gain; Breaches of U.S. government organizations by foreign governments to steal government secrets for military, intelligence, economic or other foreign policy gains; and then Cyber extortion.
Therefore, being multifaceted in protecting network security is incredibly beneficial. Peter Toren, partner at Weisbrod Matteis & Copley, states that there are two key reasons for this approach as attacks can come from a variety of sources: both external and internal, both of which need to be addressed. For example, firewalls can deter hackers from accessing the company computer system and notify management if a potential breach has been attempted. Further, internal attacks must be prevented with sound internal controls and processes. To achieve this, confidential information must only be granted access to authorized personnel.
Toren elaborated, “These controls are very different from preventing outsiders from hacking into the computer system and are equally important since studies have shown that employees pose a significant risk to a company's computer system and proprietary information.”
Toren also explained that the hackers have more resources to access such information than the company is spending to deter them. Since cybersecurity programs are not directly correlated to profits, many companies choose to forego the security altogether, risking their reputation and client data.
As computer use and digital storing is still in its infancy, these risks are only going to increase over time. The proper protection to combat these risks is essential for any size firm. In addition to bringing you the latest news from the insurance industry, PL Risk provides Resources for Agents and Brokers nationwide. We’ve recently implemented Hiscox Now, which allows agents their own access to Hiscox and instant quoting. To learn more about our operations, contact us today at (855) 403-5982.
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