Feb 27, 2024Why Cyber Insurance Is Becoming A Business Staple
Cybersecurity in the Workers’ Compensation System
As the world continues to depend more on a digital landscape in everything from business operations to health care, consumerism, and social networking, the threat of cyber attacks is rising with it. In fact, ransomware attacks cost businesses more than $8 billion in 2018, and that number is expected to rise.
One area that cyber attacks are making vulnerability felt is in the world of workers’ compensation services. The industry is set up for a cyber attack takeover with identity theft and blackmail making their marks as potential risks. Cyber insurance is now more important than ever, protecting a company’s financial and sensitive information.
With that in mind, it’s important to note that the workers’ compensation industry may find itself in the middle of major cyber attacks without a solution in place to fight against them.
Risks and Damages
There are a number of ways in which bad actors can hack into an organization’s data, and they’re only getting more sophisticated. One way is through a security flaw that can be uploaded through the firmware of a USB drive, essentially turning a user’s keyboard, mouse, and storage device into a cyber threat for a company.
Another risk facing secure workers’ compensation information is through external attacks to a company’s network or website platform. Software can breach a company’s firewall, getting inside to gain access to a company’s internal computer network via mobile devices like phones, laptops, and tablets.
What’s more, the sharing of sensitive data through email is an easy way for hackers to obtain the information they’re looking for without any hassle.
Solutions for Workers’ Compensation Systems
Cyber threats act as moving targets, not being able to pin them down to better understand their origins. A lot of hacks are exploiting vulnerabilities that come up through updates to software and the operating system that are ongoing. With technology progressing at a fast enough clip, staying on top of attacks and methods requires elevated and dedicated resources that just aren’t attainable at this point in time. Reliable long-term solutions aren’t possible right now, but companies can still take steps to keep risks and losses low.
Those in the workers’ compensation industry can make sure their network is safe through the implementation of the latest antivirus software and antispyware, and update on a regular basis. All software vendors provide patches and updates to their products to ensure that security issues are improved upon.
Also, companies can safeguard their Internet by using encrypting information as well as a hidden and secure WiFi network. This is ground zero for cyber attacks that find their way into a company’s data. Companies should also establish policies on how employees should handle and protect personally sensitive identifiable information and other sensitive data. Consequences should be clearly outlined when it comes to violating cybersecurity policies.
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.