Knowledge Center

Knowledge Center Items 7 Businesses That Need Cyber Insurance

7 Businesses That Need Cyber Insurance

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The world runs on computer systems, and cyber attacks can happen to any company at any time—but certain industries stand above the rest as far as risk. Let’s take a look at sample scenarios from 7 sectors that can’t afford to be without cyber insurance.

Finance

Attack: The compromised email system of a wealth management advisor led to phishing emails being sent to customers. Hackers were able to infiltrate the email system and create false invoices appearing to come from the wealth management advisor's email account. The payment instructions were altered to divert payment to the fraudster's account.

Non-Profit Organizations

Attack: The non-profit terminated an employee who downloaded donor files to a thumb drive and then deleted them from the non-profit’s computer system.

School Districts

Attack: Hackers were able to force their way into the school’s accounting system resulting in employees’ payroll checks being deposited into a fraudulent account.

Manufacturing

Attack: Fraudulent wire instructions were sent to the company’s client by hackers who were able to disguise themselves as the manufacturing company. They took over an email account and provided a different bank routing number and account information to the customer. The customer sent the payment to the hacker’s overseas account.

Public Entities

Attack: The city’s finance manager discovered ransomware on the city’s servers. The servers contained accounting software, personal employee information and payroll data. A message from the hacker stated that “bitcoin ransom would be negotiated on how quickly the city responded.” A third-party IT forensic team, contracted through the insurance carrier, negotiated the ransom payment amount from $1.5M down to $776K and investigated the business’s system for data access or exfiltration.

Healthcare

Attack: A non-encrypted laptop that contained Protected Health Information (PHI) was stolen from a doctor’s office. HIPAA notifications were made to the affected patients and a forensic investigation began regarding the security of the network and whether the 2,500 individuals whose information was compromised are at risk for identity theft.

Retailers

Attack: A furniture store experienced a wire fraud loss of $47,630. Spoofed emails were sent from an email address that appeared to be from a trusted purchasing agent. The funds were sent by the office manager. Several days later, after a phone call, the office manager learned that the instructions were false. The firm notified the bank and tried to stop the payment.

Claim examples like the above are perfect for sharing with your clients. Real-life scenarios are extremely effective in helping insureds understand the real risks that are out there, and why their businesses need Cyber Liability insurance.

 

To learn more about cyber liability coverage, visit https://www.rpsins.com/products/cyber-liability/.

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