Throughout the world, and throughout every major sector (business, banking, social media, real estate), cybersecurity was a huge issue in the past year. Banks and financial institutions underwent hacks from bad actors looking to steal or hold data hostage; fake social media accounts were created to sew doubt and fear in election cycles; and homeowners associations experienced data breaches that harmed members.
What’s more, cyber attacks are getting more serious and hackers are using more sophisticated methods to illegally obtain information and resources. Mobile malware and identity theft continue to be major players in the cybersecurity realm, causing banks, businesses, consumers and insurance agents alike to invest in forms of cyber insurance.
With all this in mind, it’s important to be diligent about what’s possibly to come in this new year and how you can be ready to combat against it.
Brexit & UK Tech
A lot of the news out of the United Kingdom and the European Union has been focused on Brexit, including the departure date of March 29 and the no-confidence votes being expressed in parliament. The “no deal” sentiments expressed by members of the UK’s political body can possibly have a negative effect when it comes to cybersecurity and the digital presence of the country’s citizens and companies, especially those in tech and startups.
Breaking away from the EU will hurt startups and the tech scene together, especially without trade or immigration deals set in stone. Things like data transfers and data protection can possible be a nightmare for companies with the change in EU privacy laws, leaving many tech businesses hanging in the wind.
What this will possibly do is open said companies up to plenty of cybersecurity liabilities, only enhancing the need for cyber insurance, offered by companies like Tangram Insurance. The cause for concern when it comes to data hygiene can also be seen across the pond in California.
Privacy Rules in California
The last election cycle brought about a new consumer privacy law in California, which will go into effect later this year. The law will mandate that companies disclose how they collect user data and what they do with it. Authorities can impose fines on companies that don’t comply with the law, which means it’s particularly important for consumers, especially since most of the word’s big tech companies rest in California (i.e. Silicon Valley).
Those who opposed the law are the tech companies themselves. This is great news for those who use social media or by tech product, but this can be a big uphill fight for tech companies looking to sway lawmakers on a federal level. People can expect there to be a call for weaker legislation out in Washington, D.C. to overrule California’s state laws.
Facebook’s Privacy Issues
Facebook has been under the microscope since the last general election in 2016 when it was discovered that foreign hackers infiltrated the social media site to influence and sway the election. This brought the company’s leaders to Capitol Hill to testify under oath and brought awareness to the public about the sensitivity of the issue of data protection.
Facebook has now set a precedent for other tech giants and social media sites who deal with sensitive data (all of them). One major issue with Facebook is that it was caught selling ads and selling use information to bad actors looking to take advantage of consumers/users. Companies like Google, Apple and Twitter are now being held to a higher standard, and users can expect there to be more focus on the practices of these companies and more awareness around what kind of information we give freely to them.
About Tangram Insurance Services
Located across the Golden Gate Bridge, just outside of San Francisco, Tangram is a full-service Managing General Underwriter and Program Manager offering specialty programs. We focus on industry-relevant coverage, competitive pricing, and practical business and risk management solutions for your clients. Since we are not all things to all people, we make sure to create outstanding custom-built solutions that matter to those businesses, and the brokers who serve those industries. Contact us at (888) 744-9810.