Cyber Insurance Agencies increase scrutiny of COVID-19 claims as the pandemic increases their submission
Businesses hoping to rely on cybersecurity insurance coverage to offset the cost of a data breach may have a more difficult time recouping their losses.
According to reporting by The Wall Street Journal, insurers are becoming increasingly critical of cybersecurity-related claims. Specifically, companies are adding questions to surveys used to calculate premiums and assess damages.
In some ways, this change is the result of a rapid shift to remote work.
As we’ve covered extensively, remote work comes with many cybersecurity risks, and insurance agencies are hedging their bets, assuming that they could incur an influx of claims as companies fail to grapple with the ramifications of remote work.
For businesses, this is a reminder that they shouldn’t rely on cyber insurance to bail them out if they have a cybersecurity incident. Instead, they should invest in the tools that can prevent a cybersecurity incident in the first place.
Australia – The Toll Group – Transportation and logistics company
Risk to Small Business: Extreme: The cascading consequences of a January cybersecurity incident are becoming increasingly apparent for The Toll Group. Earlier this month, the logistics company suffered a ransomware attack predicated on this earlier network compromise. The incident included data exfiltration.
That information has now been shared and sold on the Dark Web, complicating an already arduous recovery process for the company and its customers. This incident is a reminder that cybercriminals are no longer content to encrypt networks in hopes of a financial windfall. They are willing to steal and sell company data to ensure that they earn a return on their efforts.
Risk to Exploited Individuals: Severe: The compromised server contains personal information for many past and present employees. While the company didn’t identify the specific data points, employees should assume the worst and take precautionary measures to secure their personal and financial information. This includes monitoring accounts for suspicious activity and enrolling in credit and identity monitoring services to oversee their personal information
Customers Impacted: Unknown
United Kingdom – EasyJet – Airline
Exploit: Unauthorized database access
Risk to Small Business: Severe: Hackers accessed EasyJet’s network, compromising customer details and exposing them to potential cybersecurity risks. The company took quick action to secure compromised IT, but the breach will still have costly implications for the company, which now has a triumvirate of responsibilities, including repairing IT vulnerabilities, restoring customer trust, and addressing regulatory scrutiny. The timing couldn’t be worse, as the airline industry, like many sectors, has been severely degraded by the COVID-19 pandemic, making this breach especially problematic for the company.
Risk to Exploited Individuals: Severe: Customers’ personally identifiable information was exposed in the breach. This includes usernames, passwords, credit card numbers, and passport credentials. The company encourages customers to carefully monitor incoming communications, as this information is often used to craft convincing-looking spear phishing campaigns. In addition, customers should consider enrolling in a credit or identity monitoring service to help ensure their information’s security even after the immediate crisis subsides
Customers Impacted: 9,000,000
Being proactive in developing a cybersecurity plan can be the difference in successfully defending a breach or losing millions to a harmful attack.
Protect your data, privacy and reputation, talk to a TCT sales team member today.
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