FRIDAY, APRIL 26, 2013
Blog By: Garry Watts, CPCU, CRM
The insurance organization Lloyd’s of London is quoted as saying: “E-commerce will emerge as the single biggest insurance risk of the 21st century.” The threats are real, and growing in both number and sophistication. Have you been listening to the news today?
There were 2,870 data breaches between 2005-2011 affecting 543,323,607 records, according to Privacy Rights Clearinghouse. The average cost of a data breach is between $2.4 million (NetDiligence) and $7.2 million (Ponemon Institute.) The top causes of a breach: hackers, rogue employees, staff mistakes, loss/theft, and business interruption losses.
Here is an amazing statistic: A Ponemon Institute study indicates that business travelers are losing over 10,000 laptops every week at 36 of the largest U.S. airports. Wow! Only 1/3 of these are ever reclaimed. More than 53% of business travelers polled say their laptops contain private or confidential information, and 65% admit they do not take precautions to secure the information on their laptop. The average claim paid from the loss of a laptop is $50,000. Replacement cost, detection, forensics, data breach, lost IP costs, lost productivity and legal consulting and regulatory expense make up the cost of $50,000.
So far, as you read these stats you are probably thinking that this only happens to large companies. However, 1/3 of all cyber attacks are on companies that have less than 100 employees. And this number is increasing.
There are three simple things you can do to improve your chances of deterring a cyber attack: keep your firewall updated, keep your antivirus software updated, and create more sophisticated passwords.