By Tim Danna, Commercial Agent
Moore’s Law was proposed in 1965 by Intel co-founder Mr. Gordon Moore. The law, in simple terms, states that technology will double itself every two years. More than 50 years later, we are confounded by the fact that this concept is still felt in many ways.
The ever-progressing push forward affords endless applications in everyday life, boasting both positive and negative impacts.
Our phones and laptops are becoming so powerful that they’ve replaced entire warehouses of devices on a single unit so slim that they seem to disappear when viewed from the right angle!
This power, however, is just as easily accessible by intelligent and tech savvy parties with nothing but malice and money on their minds.
It is estimated that businesses and financial institutions transacting through e-commerce are expected to shell out roughly $9.2 billion a year by 2020, which boasts a 30 percent uptick when stacked against current levels, according to Juniper Research. These trends are inspired by the ever-pressing cyber threat evolving out of this exponential increase in powerful technology.
Global internet transactions are expected to surpass a whopping $27.7 trillion in 2020, shadowing last year’s already impressive $22 trillion, says eMarketer. This colossal market is a cash cow for hackers around the globe looking to capitalize on businesses and consumers alike.
Erika Dietrich, Global Director of Payments Risk Management at fraud fighter ACI Worldwide tells us, “We are seeing more sophisticated types of fraud, moving into the online environment.” There has recently been a slew of instances in which various software programs are placing orders in online shopping carts using hijacked data.
It’s scenarios like this, and the 180 million cyberattacks expected in 2017, that beg the questions, “What can we do if it happens to us? What are our peers already doing to protect themselves?”
The answer is a hearty combination of preparation and defense. Most of our peers who are proactive, or who have already experienced a breach and are ready for another, have focused on four distinct areas:
1. Acquiring additional financial security through the purchase of a comprehensive cyber insurance policy
2. Establishing a Crisis Team including key leadership members as well as your risk manager and insurance agent to discuss action items and best steps should a breach occur
3. Putting a multi-layered security software system in place from a trusted source including but not limited to: Check Point, IBM, Cisco, Symantec, RSA, Palo Alto, FireEye
4. Preparing effective communications to rebuild trust in advance of a breach
The financial loss incurred from a breach can wreak havoc and potentially cripple a business to the point of no return. Mitigating that financial risk is easily done with the right insurance policy.
Speak with your insurance agent, or give us a call here at Beck Partners to discuss the amount of coverage appropriate for your business. These policies will provide you with a variety of services following a breach, including:
• Forensic Investigation
• Profit/Loss and Legal Advice
• Legal Defense
• Public Relations Initiatives
• Regulatory Response
A properly functioning Crisis Team will typically include:
• C-Level Executive
• Human Resources
• Operations and Communications
Effective communication prepared in advance holds the capacity of smoothing out even the roughest breach. This will typically be pieced together by the Crisis Team members and address the pertinent individuals affected by the breach including employees, stakeholders and the public. Be sure to delegate information to the respective parties as needed, and only provide a necessary amount of information to said party.
It is easy to assume that a breach will never happen, and this is exactly the mind state online predators hope you will take in regards to your business’s cyber security. In Cisco’s 2016 Annual Security Report we realized that only 29% of small to medium-sized businesses utilize basic security tools such as patches and configuration to foil cyber breaches. These numbers are down a hefty 10% from 2014. We should be surging forward in this never-ending arms race, as opposed to regressing.
In these curious times of rapid technological growth, be prepared and grow your security and response team. It could mean the life, or death, of your business.
Filed under: Insights