Cyber threats continue to challenge individuals, countries, and companies in today’s digitally interconnected world.
Whether they are familiar but no less dangerous risks like ransomware attacks or denial-of-service (DoS) attacks, or whether they take such still-emerging forms as cryptojacking or AI-powered phishing campaigns, cyber security threats require constant vigilance and proactive protective measures, especially given current events.
Have your business clients assessed their cyber risk recently and obtained adequate Cyber Liability Insurance? Drawing your clients’ attention to current cyber threats may be a way to help them understand the importance of Cyber Insurance and motivate them to purchase it through you.
Cyber Warfare and State-Sponsored Cyber Attacks
As of the end of 2023, 183 armed conflicts rage around the globe. And some of these conflicts pose cyber security threats.
The full-blown “cyber warfare” some observers anticipated in the Russia-Ukraine war hasn’t materialized as of mid-2024. But Russian hackers did infiltrate Ukrainian telecoms firm Kyivstar last year. They wiped out thousands of virtual servers and PCs used by 24 million people.
“This attack is a big message, a big warning,” Illia Vitiuk of Ukraine’s cyber security department told Reuters, “… that no one is actually untouchable.”
Sometimes, nation-states sponsor cyber attacks instead of conventional military ones. Thirty-four countries are believed to have sponsored cyber operations since 2005, per the Council on Foreign Relations. China, Russia, Iran, and North Korea “sponsored 77% of all suspected operations.”
U.S. companies and organizations aren’t immune to such attacks, as the 2020 SolarWinds hack demonstrated. Hackers allegedly sponsored by Russia inserted malicious code into software updates installed by 18,000 SolarWinds customers. SolarWinds’ customers include most U.S.-based Fortune 500 companies as well as critical U.S. government agencies, so it’s clear that the threat was urgent and severe.
U.S. Infrastructure in the Cyber Crosshairs
Critical infrastructure systems are interconnected and rely heavily on digital technology. As a result, they are highly vulnerable to cyber threats.
Earlier this year, FBI Director Christopher Wray warned that hackers linked to the Chinese government have infiltrated critical U.S. infrastructure and await “just the right moment to deal a devastating blow.”
The hackers created a botnet of hundreds of hijacked routers in U.S. small offices and home offices. The routers were vulnerable because their manufacturers no longer support these older models with software updates or patches.
In particular, cyber attacks against community water systems (CWSs) have increased in frequency and severity. Hackers affiliated with not only China but also Iran are targeting drinking and wastewater resources.
The EPA has stepped up inspections of CWSs to ensure they conform to best cyber security practices, as statutes require, and to help utilities better safeguard their operations. Failure to do so could result in disrupted treatment, distribution, and storage of water, as well as damaged pumps and valves, among other impacts.
Healthcare Sector Facing a Dire Digital Diagnosis
While every industry faces cyber security threats, the healthcare industry has long been at risk due to the large volume of personal data it handles and stores.
This year’s data breach at UnitedHealth Group, in which hackers stole health and personal data from a “substantial portion” of Americans, “was one of the worst hacks to hit American healthcare.” Cyber criminals stole the information and posted it on the dark web for about a week, despite UnitedHealth paying a ransom. The attack disrupted both payments by insurers to providers and the fulfillment of patients’ prescriptions.
Just last year, HCA Healthcare suffered a cyber attack in which threat actors stole data from an external storage site. The hackers exfiltrated the names, email addresses, birth dates, and other personally identifiable information (PII) of more than 11 million patients in 20 states.
Healthcare is unlikely to stop being an irresistible target to cyber criminals any time soon. The potential for financial gain from stolen medical data is simply too great.
The Importance of Cyber Insurance in Today’s Digital World
As this brief overview shows, businesses and other organizations must take current cyber threats seriously. Failing to do so jeopardizes not only the data they handle but also their operations, reputation, and continued viability.
Analysts and observers expect cyber security threats will persist and increase, as will the risk of extreme financial losses from cyber attacks. Even if any given company isn’t the direct target of a cyber attack, it might face downtime or other disruptions because a company on which it depends is targeted (as happened, for instance, to UnitedHealth’s providers).
Cyber Liability Insurance is an indispensable component of cyber risk management.
Cyber Insurance policies can function as Cyber Attack Insurance—not so much against cyber events happening altogether, although steps businesses take to obtain policies can reduce risk, but against such incidents’ financial impact. It provides financial coverage for such associated expenses as legal fees, forensic investigations, customer notification, and credit monitoring services.
At ProWriters, we make researching, quoting, and selling Cyber Insurance faster and easier than it ever has been. Schedule a time to talk with us about how we can help you secure the Cyber policies your clients need when doing business today.