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Category Archives: Cyber Breach

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Data Breaches in Schools Should Not Be Dismissed

Posted in Cyber Breach, Education, Schools, Uncategorized

There is an increasing number of reported breaches in our school systems.  Just this past July: •Ferris State University in Michigan reported that PII for 39,000 students and employees was briefly available after an unauthorized entry into its system. Ferris State Breach •high school in North Carolina’s Guildford County inadvertently disclosed the PII of 456 students… Continue Reading

Cyber Risk and Professional Firms

Posted in Business Practices, Coverage, Cyber Breach, Cyber Costs, Damages, Data Breach, Insurance

Earlier today Kari Timm moderated a panel on cyber risk and insurance for law firms and other professional firms during the 2013 PLUS Professional Risk Symposium.  To see a short video discussion on cyber risks for professional services firms from the 2013 PLUS Professional Risk Symposium please visit the PLUS Blog (http://plusblog.org/2013/04/10/cyber-risk-and-professional-firms/).

Privacy Breaches & Insurance: A Year in Review and What Lies Ahead in 2013

Posted in Coverage, Cyber Breach, Insurance

 CYBER AND PRIVACY BREACHES: A YEAR IN REVIEW AND WHAT LIES AHEAD FOR 2013 Join us on December 4, 2012 from 10:00 – 11:00 C.S.T. for “Cyber and Privacy Breaches: A Year in Review and What Lies Ahead for 2013, ” the final 2012 session of our Webinar Series on Cyber and Privacy Breaches and their Insurance… Continue Reading

Behind the Curtain: Just whose risks are being insured?

Posted in Business Practices, Coverage, Cyber Breach, Data Breach, Insurance, Reinsurance

In today’s challenging economy, it is hard to turn away new business, whether from a client who provides a law firm with steady work, or a broker who contracts for investment services or a health care organization that contracts with a nursing registry.  But what happens when the new client demands that as part of… Continue Reading

Ponemon and Symantec Release 2011 Cost of Data Breach Study

Posted in Business Practices, Cyber Breach, Cyber Costs, Data Breach, Uncategorized

The Ponemon Institute and Symantec Corporation have released the seventh annual U.S. Cost of Data Breach along with data breach studies for the United Kingdom, Germany, France and Italy (Australia and India aren’t yet posted to the Symantec site).  Here are some of the findings (please note that these are averages and each country had varying… Continue Reading

Healthcare Organizations still “under the weather” according to Ponemon’s Second Annual Study on Patient Privacy and Data Security

Posted in Cyber Breach, Damages, Data Breach, Federal Legislation, Health Records Privacy, Healthcare, HITECH, physician, Uncategorized

Although Ponemon’s Second Annual Benchmark Study on Patient Privacy and Data Security has shown some improvement for health organizations the overall message is still bleak.  The second annual report examines changes from the past year that may have affected privacy and data protection in healthcare organizations.  It also looks as how well the healthcare organizations are… Continue Reading

Disclosure of Cyber Risks & Insurance Required by SEC

Posted in Business Practices, Corporate Governance/Reporting, Coverage, Cyber Breach, Insurance, SEC

Over the past few years, cyber risks slowly have become more of an issue for C-suite executives and corporate boards.  However, new guidelines issued by the SEC requiring that companies disclose such risks and relevant insurance coverage will likely push cyber security and insurance onto the C-suite agenda quicker than ever. Acknowledging that cyber attacks are becoming… Continue Reading

California Beefs Up Security Breach Notification Requirements

Posted in Breach Notification Laws, Cyber Breach, Data Breach, Privacy Legislation

On August 31, 2011, California Governor Jerry Brown signed Senate Bill 24 (“SB 24″) into law.  The bill amends the state’s security breach notification statute requirements for breach notifications sent to California residents.  SB 24 also mandates electronic notification to the state Attorney General when a breach affects mores than 500 California residents. SB 24… Continue Reading

Zurich Denies Coverage for Sony PSN Hacking Claims & Files Suit

Posted in Class Action, Coverage, Cyber Breach, Insurance

The hits just keep coming for Sony.  In addition to defending 58+ class action lawsuits in the U.S. and Canada, and responding to numerous governmental inquiries into the hacking of its PlayStaion Network and Sony Online Entertainment earlier this year, Zurich has filed suit against Sony seeking a declaration that various Zurich policies do not provide coverage for the… Continue Reading

Ponemon Institute Reports 56% Increase in Cost of Cyber Crime

Posted in Cyber Breach, Cyber Costs, Insurance

The costs associated with cyber crime have increased significantly over the past year according to the Second Annual Cost of Cyber Crime Study the Ponemon Institute released earlier this month.  The total annualized cyber crime cost for those organizations that participated in the study ranged from $1.5 million to $36.5 million, with a median cost of $5.9 million, an… Continue Reading

Expert: Demand for Cyber Insurance On The Rise

Posted in Breach Notification Laws, Cyber Breach, Insurance

Hiscox’s James Whetstone, senior VP and U.S. technology and privacy manager, discusses the increasing demand for cyber insurance even before the recent spate of high-profile breaches.  Mr. Whetstone’s interview with My New Markets.com, sponsored by the Insurance Journal, can be found here: Expert Assesses Cyberinsurance Market: Demand, Prevention, Recovery

Reinsuring Cyber Risks

Posted in Cyber Breach, Damages, Reinsurance

Many of the underwriting and wording considerations that direct insurers bring to cyber risks  apply to reinsurers as well.   But there are also issues that are unique to reinsurers.  We will explore some of these issues in periodic postings.   Click here for Reinsuring Cyber Risks: Be Careful Out There , our analysis of reinsurance wording issues and… Continue Reading

Ponemon Reports Significant Increase in Cyber Attacks

Posted in Cyber Breach, Insurance

The Ponemon Institute study “Perceptions About Network Security” reports a significant increase in cyber attacks, both in terms of frequency and severity. Ponemon surveyed 583 IT and IT security practitioners in the United States.  More than half of those surveyed are employed by organizations with 5,000+ employees.  Seventy-eight percent of the respondents reported that their company had… Continue Reading

Cyber Breach Class Actions: Discounted by the Supreme Court’s Wal-Mart Decision?

Posted in Class Action, Cyber Breach

It is not uncommon for cyber breaches to involve thousands of individual claimants.   With studies placing the average cost of a cyber breach between $200 and $500, it is unrealistic to expect individual plaintiffs to file lawsuits for damages allegedly resulting from the breach.  The most viable way for plaintiffs to seek recovery, and the most attractive… Continue Reading

Connecticut AG Demands Answers from Citigroup

Posted in Breach Notification Laws, Cyber Breach, Privacy

In what is likely the first of many state inquires to come, the Connecticut Attorney General sent a letter on June 13, 2011 to Citigroup, Inc. requesting more information about the recent data breach it announced last week. On June 9, 2011, Citigroup announced that unidentified hackers had breached its system and accessed data belonging… Continue Reading

Lockheed Martin Hacked

Posted in Cyber Breach

Lockheed Martin, a major U.S. defense contractor, sustained a cyber attack on May 21, 2011 that it described as “significant and tenacious.”  Lockheed Martin, the Pentagon and the Department of Homeland Security are investigating, although government officials say no sensitive information was leaked.  [Lockheed Press Release PDF]

Sony Insurers Should Expect a Busy Year

Posted in Cyber Breach, Damages, Retail, Uncategorized

Sony insurers are going to have a busy year.  Sony is estimating loses of $3.2 billion [pdf] from the Earthquake damage and Sony’s continued troubles with hackers.  Since our last post we have learned: The hacker used Amazon’s Elastic Computer Cloud, or EC2, service to attack SOE. May 17, Sony’s chief executive, Howard Stringer, claimed… Continue Reading

Cyber Breach Incidents Increasing Frequency and Damage

Posted in Coverage, Cyber Breach, Insurance

Each day there are new data breaches resulting in lawsuits and loss.  Individuals are losing PII, credit card information,  and their trust in the security of their information.  Just this past week Ian Paul of PCWorld posted a recap of the larger risks in the past few months. It is impressive to think that Epsilon (which included over a hundred… Continue Reading

Sony Data Breach Clean Up Continues

Posted in Cyber Breach, Retail

Things for Sony are definitely heating up.  Yesterday the Subcommittee on Commerce, Manufacturing and Trade of the U.S. House of Representatives Committee on Energy and Commerce held a hearing on “The Threat of Data Theft to American Consumers.” Sony didn’t send a representative, but Kazuo Hirai, Chairman of the Board of Directors, sent a letter… Continue Reading

Sony Notifies Customers of Second Breach

Posted in Cyber Breach, Retail

Not even a week after the Sony Computer Entertainment and Sony Network Entertainment data breach, Sony Online Entertainment is now notifying customers that its data was also compromised during the same time period.  According to the post an ongoing investigation is continuing and another 24.6 million accounts may have been compromised.  In addition to user account… Continue Reading

Privacy of Pharmaceutical Records Challenged

Posted in Breach Notification Laws, Cloud Computing, Coverage, Cyber Breach, Health Records Privacy, Insurance, Privacy, Privacy Legislation, Reinsurance

When a pharmacy fills a prescription, it records the drug, dosage, prescribing physician, age and gender of the patient.  The pharmacy sells this information to “data miners” who compile reports about the physician’s prescription habits.  The data miners then sell their research to pharmaceutical companies, who use the data for target marketing to doctors most likely to… Continue Reading

Sony Experiences Data Breach

Posted in Cyber Breach, Retail

Today Patrick Seybold of Sony Computer Entertainment and Sony Network Entertainment announced that it has learned of an intrusion to its’ PlayStation Network and Qriocity services servers between April 17th and April 19th and shut down services to investigate.  In response, Sony has engaged an outside security firm to investigate, and will be notifying customers by… Continue Reading

Data Breach Costs on the Rise: Can Insurers Help Lower the Costs?

Posted in Coverage, Cyber Breach, Insurance, Privacy

In its 2010 U.S. Costs of a Data Breach study, the Ponemon Institute reported that the costs associated with data breaches continued to rise last year and more specifically, that the costs incurred by those companies that responded quickly to the breaches were significantly higher than those paid by companies that responded more slowly.  These… Continue Reading