Cyber Risk Threatens Privacy, Critical Infrastructure

Cyber Risk Threatens Privacy, Critical Infrastructure

July 6, 2018 Business Insurance and Risk Management, The Beacon Blog 0 Comments

A new research report by Black Hat USA, Where Cyberscurity Stands, should set off alarms about security risks. The report’s findings are outlined in a 6/26/18 news release (…).

  • 74% of security professionals suggest online privacy and identity will be impossible to protect, even with precautionary measures and new regulations (in addition to European GDPR, California now has a stricter data protection law).
  • 75% of professionals are limiting their Facebook use or avoiding it entirely.
  • On a national level, only 13% believe Congress and the White House understand cyber security threats, and only  15% believe the government and industry are prepared to respond to a major critical infrastructure breach. (According to cyber security executive Tarah Wheeler, the next 9/11 will be a cyber attack.) 71% say activity from Russia, China and North Korea has made U.S. data less secure. in 2017 60% of professionals expected a successful attack on on U.S. critical infrastructure, and that percentage has risen in 2018. The most likely actors are Russia and China. (Will the trade war with China lead to a cyber war? Stay tuned.)
  • In the U. S., Europe and Asia nearly 60% of organizations expect a major security breach in the next year, and most do not believe they have adequate staffing or budget.
  • The only effective technologies against cyber threats are encryption, multifactor authentication and firewalls. Nearly 40% of respondents consider passwords ineffective.

While we should invest in cyber security and purchase cyber insurance as a backup, we must realize our best efforts may not prevent a crisis.

About the Author

Harry Cylinder

Harry Cylinder, CPCU, ARM has spent nearly fifty years in the insurance industry, the majority of the time as a consultant. He has been employed by The Beacon Group of Companies since 2008, specializing in the review and analysis of property and casualty coverage forms. Mr. Cylinder has been reviewing policy forms as they have evolved over the past decades. In 2008 he published an article in the CPCU Journal which was the first description of cyber insurance coverage for a general insurance audience. Since that time he has regularly written on cyber and other topics for The Beacon Companies’ blog.