On May 7, 2021, the U.S. got a taste of the disruption that can occur when hackers break into a system and hold it hostage. A criminal gang known as DarkSide, operating out of Eastern Europe, used ransomware to shut down the Colonial Pipeline, creating panic and causing fuel shortages in states in the country’s eastern region. Though a company like this may have had cyber insurance, they could not get their pipelines up and running until they paid the criminals $4.4 million in Bitcoin. While this incident made the headlines, it isn’t just the big companies that face rising cybersecurity concerns. Do your clients know their blind spots?
Blind Spots in Cybersecurity
The world is becoming increasingly dependent on technology to function. People, services, companies, and countries are all interconnected in a complex technological web. Phones are now minicomputers, used for storing and sharing data. Cars run on computer chips. Accounting services utilize subscription software platforms. Hospitals store sensitive patient data in the cloud. Restaurants rely on computers for customer service and ordering. The list goes on.
It doesn’t take much for an entire system to be interrupted, and cyber criminals seem always to be one step ahead of cybersecurity systems. Businesses, both small and large, can have many blind spots in their system, and many don’t realize what they are. Your clients may be vulnerable from:
- Exposure to phishing emails
- Lack of adequate encryption
- Weak passwords
- Uninstalled critical security patches
- System access from multiple external devices
- Broad user network privileges
Without taking adequate measures, companies stand to lose a great deal if their systems get hacked.
Damages From Cyberattacks
Any business that sells products or services to customers potentially exposes their customers’ personal and financial information when they do not take appropriate cybersecurity measures. Furthermore, hackers can lock companies out of their own systems, halting operations until they get what they want. These incidents cost businesses in lost revenues, lawsuits, investigation costs, and fines. One incident can result in catastrophic financial and reputational damages.
Challenges of Cyber Security
Though many companies are aware of the potential for cyber attacks, most of them do not take steps to protect their businesses. Even when they do, they face significant challenges in maintaining a secure system. It can be costly to hire a dedicated cybersecurity team and purchase adequate security tools. Staying on top of updates, enforcing company cybersecurity rules, and educating staff can also be time-consuming.
However, businesses owe it to themselves, their employees, and their customers to do what needs to be done to protect their enterprise system from cybercriminals. Cyber insurance is a critical component in any cybersecurity plan because, no matter how many security measures a company puts in place, there is always the potential for hackers to find a way into their system.
About Tangram Insurance Services
Located across the Golden Gate Bridge, just outside of San Francisco, Tangram Insurance Services 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.