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Limit of Liability

Company Details

Do you process, transmit or store more than 10,000 financial transactions per year?

Yes No, less than 10,000

Do you use and keep up to date firewalls and anti-virus protection for all systems?

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Do you use third parties to complete audits of your system and security on a regular basis?

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Are all portable devices password protected? (mobile phones, laptops, tablets, etc)

Yes No

Do you have encryption requirements for all data including portable media?

Yes No

Do you have back-up and recovery procedures for business critical systems, data and info assets?

Yes No

Do you outsource any part of your network, including storage?

Yes, we use third party providers. No, all managed in house

Do you store sensitive information on web servers?

Yes No

Do you know of any loss payments, fines or penalties being made on your behalf?

Yes No

Are you aware of any matter which might give rise to a claim or loss under such insurance?

Yes No

Have you suffered any loss or claim but not limited to a regulatory, governmental or administrative action brought against you, or any investigation or information request concerning any handling of personal info?

Yes No

The applicant or any subsidiaries have any knowledge of any loss payments, fines or penalties being made on behalf of any applicant or any person proposed for coverage any cyber policy or similar insurance?

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3 years ago · by · 0 comments

The Importance of a Cyber-Savvy Adviser

Cyber Security Insurance Broker

Why use a specialist broker to buy cyber insurance?

Many insurance professionals target an industry or area of specialisation which correlates with their personal interests or hobbies as they have a greater knowledge of the challenges facing businesses within that area.

Hundreds of dedicated insurance brokerages have popped up over the years for everything from marine related risks, mining, financial services, healthcare and medical industry, personal home insurance and the list goes on for each area of insurance.

The reason these brokerages separate themselves with dedicated products and agreements is to leverage their greater knowledge outside the immediate insurance industry.  Utilizing  insurance brokers who have a passion for your industry, were previously business owners themselves or employees within the industry they are insuring is a great way to guarantee the broker has a better understanding of the niche risks faced by your business

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Craig McDonald, Founder of Australian cyber security firm MailGaurd, recently stated  in an interview with Insurance Business Mag “Cyber insurance policies will need to constantly evolve and the broker will need to be cyber savvy in order to address the many variables within the online realm.”

” he expects cyber insurance to become a must-buy for many businesses, a proactive in-depth strategy will be key for businesses as they plan for every eventuality. Cyber insurance is great as an added layer of protection, but it’s no replacement for a strong cybersecurity strategy,”

“Brokers have an important role to play in helping organisations plan for the requirements for businesses to return to their normal operating status after a cyber attack or a data breach. Cyber insurance policies will need to constantly evolve and the broker will need to be cyber savvy in order to address the many variables within the online realm.”

How a broker works

Buying insurance online is commonplace in today’s connected world, however it can leave gaps in your insurance cover which if not accurately reviewed could be disastrous for business. Customers may choose to use the insurance company directly for their insurance needs because they believe they are cutting out the middle man to get a cheaper product. However many industries have confusing contractual obligations and regulations which in turn allows many customers to get stuck with a more expensive option which isn’t the best for their business

Your insurance broker has years of in-depth knowledge of the insurance market and can locate and negotiate the best available options assisting you to make informed decisions. Essentially doing the shopping around for you. Brokers will work with you to identify your business needs, then recommend insurance policies that ensure you are properly protected.

Dealing with an insurance broker as opposed to the insurance company directly has many benefits, for example;

  • An insurance broker works for you, not the insurance company so you can feel confident they have your businesses best interest at heart
  • A broker can explain the pros and cons of different policies to help you compare
  • Brokers will save you time in researching and negotiating the best insurance fit for your business needs
  • A broker will act as your advocate in the event of a claim and mediate the outcome, allowing you to continue trading
  • Brokers are able to offer premium funding options, allowing for better business cash flow
  • Insurance brokers can negotiate insider deals and policies which aren’t available to regular consumers.

Why use Cyber Insurance Australia?

Cyber Insurance Australia are the dedicated specialists when it comes to cyber liability and business insurance solutions for commercial and corporate organisations. Our goal is to create a more educated and protected online business community enabling Australian businesses to take all reasonable precautions to protect themselves.

Our advisers have more than 5 years corporate and commercial business insurance experience and over 15 years Information Technology industry experience

We work with a range of leading Australian and international insurers including;

Chubb, AIG, Allianz, QBE, CGU, DUAL Australia, Brooklyn Underwriting, Emergence, Vero, & more

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3 years ago · by · 0 comments

What is Ransomware?

malicious email

More than 48% of small to medium victims paying up

 

Ransomware, like any sort of malware, can get into your organisation in many different ways: most often buried inside email attachments, via poisoned websites, through exploit kits, on infected USB devices and occasionally even as part of a self-spreading network worm.

Receiving spam emails is part and parcel of doing business for a large number of Australian and international businesses. Regularly our staff speak with staff who laugh “of course” when asked if they receive suspicious emails from unsolicited addresses. The overwhelming awareness is increasing but the seriousness is still lacking as some employees scoff at the sophistication of these emails. We’ve written previously about recent malicious emails making the rounds and their complexity which has caught many Australians off guard.

encryption-ransomware-example

What is Ransomware?

Ransomware can encrypt the files on a computer (including network file shares and attached external storage devices), prevent you from accessing windows or stop certain apps from running,  victims are then directed to a webpage with instructions on how to pay a ransom in bitcoin to unlock the files. The ransom has typically ranged from $500 – $3000 in bitcoin. Microsoft have seen some recent ransomware make you complete surveys which give micro payments to the criminal for each finished survey.

ransomware-payment-key-encryption

There are different types of ransomware. However, all of them will prevent you from using your PC normally, and they will all ask you to do something before you can use your PC. Usually, the attackers specifically research and target a victim (similar to whale-phishing or spear-phishing – and these in fact may be techniques used to gain access to the network). They can target any PC users, whether it’s a home computer, endpoints in an enterprise network, or servers used by a government agency or healthcare provider.

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Ransomware By The Numbers

A recent survey in the U.S indicated that more than 50% of small to medium enterprise (SME) have experienced ransomware and of those, a staggering 48% have paid the ransom.

Reports in 2016 that more than $1 billion was taken in from ransomware alone with an even higher figure expected for 2017. “The $1 billion number isn’t at all unreasonable and might even be low,” confirmed Mark Nunnikhoven, vice president of cloud research at Trend Micro. The amount of money up for grabs is incredible and it is easy to see why potential cyber criminals are enticed and existing criminal groups have switched their methods.

The above figure was gathered by monitoring known criminal bitcoin wallets. More than $50 million was tracked for each of three wallets associated with the Locky ransomware, and a fourth one that processed close to $70 million. Cryptowall brought in close to $100 million before it was shut down this year. CryptXXX gathered in $73 million during the second half of 2016, and Cerber took in $54 million.

Smaller ransomware families brought in another $150 million, and the FBI has reported $209 million in ransomware payments during the first three months of 2016. In addition to this $800 million or so in known payments, there are many other Bitcoin wallets that are unknown to researchers and uncounted, pushing the estimated total to $1 billion for all of 2016.

A Mimecast survey in 2016 found that 34 percent of Australian executives consider ransomware to be a ‘high threat’ – well ahead of the 25 percent in the US and 18 percent in South Africa.

Time frames for ransom payments can range from as short as 48 hours to as long as 1 week.

Over 4,000 ransomware attacks occurred daily since January 1,2016 which is a 300% increase on the 1,000 daily attacks recorded in 2015 according to the US Department of Justice.

Preemptive Protection

Employee Education

Employee error is the number one reason for the majority of data breaches and cyber intrusion events. Having a good information security culture for all staff is beginning to take hold as directors are being shown that this isn’t simply an IT issue.

Data Protection Services

Arranging a solid data protection solution is a terrific fail-safe. As important as employee education is, the same goes for the information security procedure in place on a daily basis. There is a myriad of data protection solutions on the market today from numerous vendors for all aspects of the digital side of business. Have your business audited today!

A couple of recommended Australian options are DDM Security Systems, MailGuard and Asterisk Information Security.

Up to date software & patches

Applying patches and other software fixes as soon as they become available is one of the best ways to keep criminals away from your sensitive information. Software manufacturers regularly update versions to include newly found software vulnerabilities that attackers could otherwise exploit. While staying up to date will not stop all attacks, it can make the process more difficult and potentially discourage attackers from accessing to your system.

Most recent versions of popular software can be configured to download and automatically update, giving you a great start toward keeping your business secure online.

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The majority of businesses we have spoken with unfortunately only took precautions as a reactive measure following a breach. Staying ahead of the curve and taking steps to put comprehensive cyber security measures in place before it’s too late is still the strongest option.

More resources and information about what a typical attack looks like and it’s life cycle can be found here.

 

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3 years ago · by · 0 comments

What Mandatory Data Breach Notification Means for Australia

cyber security, lock

Breach Notification Bill Expected to Pass in 2017

Australia is currently on the receiving end of an estimated 10 million cyber attacks per year according to professional services firm, Deloitte. With such a large dragnet across Australian businesses it is inevitable that there will be some eye opening data breaches in the coming year and widespread change to company security procedures. We previously wrote about some of the largest data breaches and exposures of 2016 which indicated approximately 2.2 billion personal records were revealed to have been compromised from 2015 – 2016.

The proposed bill which has been passed by the lower house but is still yet to be introduced in the senate will make it a requirement to notify the Australian Information Commissioner and affected individuals if their privacy has been breached. With the exception of eHealth data breaches falling under the My Health Records Act 2012, mandatory data breach notification does not exist yet in Australia. The former Labor government’s Privacy Amendment (Privacy Alerts) Bill 2013 received bipartisan support to introduce such a scheme, but did not pass the parliament before the 2013 election.

Most government agencies, businesses with an annual turnover in excess of $3 million, as well as a number of smaller organisations, such as those handling sensitive health data are all currently subject to Privacy Act obligations.

Official summary of the bill below:

“Privacy Amendment (Notifiable Data Breaches) Bill 2016 implements recommendations of the Parliamentary Joint Committee on Intelligence and Security’s Advisory report on the Telecommunications (Interception and Access) Amendment (Data Retention) Bill 2014 and the Australian Law Reform Commission’s report For Your Information: Australian Privacy Law and Practice by amending the Privacy Act 1988 to require agencies, organisations and certain other entities to provide notice to the Australian Information Commissioner and affected individuals of an eligible data breach.”

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Mandatory Breach Notification Laws Abroad

Today, approximately 90 countries have data protection laws or relevant court rulings –  ranging from Angola and Argentina to Venezuela and Zimbabwe but many of those countries still don’t require breached organizations to notify either authorities or the individuals whose personal information was exposed in the event of a breach.

At the time of writing, 47 states, three U.S territories and Washington D.C. have adopted breach notification laws of varying requirements for organisations. In the past any attempts to replace them with a standard federal law have struggled due in part because some changes would have weakened some states current security approach.

The European Union’s General Data Protection Regulation, which will go into effect May 2018, includes multiple privacy provisions, including mandatory breach notification. The EU regulation is expected to serve as a model for other countries as global awareness spreads.

India has also weighed in to the global discussion with privacy practitioners stating they may not be ready for mandatory breach notifications as it lacks the strict regulatory enforcement and the country is still making amendments to it’s Right to Privacy Bill 2014. The EU’s GDPR will be especially relevant to the Indian IT industry as it caters to U.S.-based enterprises and processes personal data of EU, Australian and New Zealand citizens.

“It will also significantly increase compliance costs for service providers – which are already higher when serving EU-based clients, as compared with markets like USA,” “However, GDPR also may remove any misgivings about the Indian industry and data security standards in India, says  Mumbai-based Sunder Krishnan, chief risk officer, Reliance Life Insurance Company Ltd.

Legal Problems

Burden of proof- justice

Some warn that when the bill is passed there will be very similar problems facing businesses as is seen currently in the United States. Data breaches frequently lead to identity theft and financial losses, the victims of which may qualify for a lawsuit. On the other hand, organisations which don’t report their breaches face a range of penalties including fines of $340,000 for individuals and up to $1.7 million for companies.

Social media has also increased the pressure being put onto businesses as we are seeing unprecedented public customer service complaints causing reputation and public relations nightmares. Expect to see disgruntled customers rallying together using social media after future data breaches.

Class action lawsuits are being enabled by the online connectivity of claimants and are costing organisations millions. Below are a few high profile data breach settlements from Classaction.com

  • Home Depot (affected 50 million cardholders): $19.5 million settlement
  • Sony (PlayStation network breach): $15 million
  • Target: $10 million
  • Sony (employee information breach): $8 million
  • Stanford University Hospital and Clinics: $4.1 million
  • AvMed Inc.: $3.1 million
  • Vendini: $3 million
  • Ashley Madison: $1.6 million
  • LinkedIn: $1.25 million

Companies much prefer settling cases out of court to going to trial. But that is especially true for data breach lawsuits, because there is almost no court precedent for these kinds of cases.

Companies like Home Depot and Sony have no idea what would happen if they went to trial to fight a data breach suit, which is a scary prospect.

Insuring Against the Risk

Many Australian insurance providers have already put policies in place to respond and cover expenses from a data breach. We recently wrote in detail about where cyber insurance steps in, which can be found here. Expenses which are typically covered are;

Forensic Investigation

A forensic IT investigation is necessary to determine what occurred, how to repair the damage and how to prevent the same type of breach. Investigation may involve services from a third party security firm or law enforcement.

Business Interruption

The business may be unable to continue trading and suffer interruption costs due to network security failure or attack, programming errors or human errors. Loss of profits and costs incurred to continue business as usual are typically covered under a cyber insurance policy.

Legal & Public Relations

Cyber Insurance policies will cover legal defence costs due to a privacy breach, fines and penalties, reputational damage and public relations expenses to assist an organisations public image after a breach.

Extortion & Blackmail Costs

Policies will cover ransomware & extortion costs from criminal organisations and disgruntled employees for the release or protection of private information.

Moving Forward

Mandatory breach notification is the best step forward but it also relies heavily on organisations actually discovering they have been exposed. In recent reports, numerous websites such as Linkedin, Myspace and of course, Yahoo have suffered very high profile breaches which occurred up to 4 years ago and were only discovered years later.

Many large industry groups including Google, Yahoo, Facebook and Microsoft are stating that the existing voluntary breach notification scheme is effective and doesn’t require change.  Despite their support and mixed reception from the private sector, security experts and business leaders from various industries are getting behind the bill and arguing it’s benefits.

The OAIC annual reports from 2014 – 20152015 – 2016  are unable to provide enough depth from voluntary reporting which indicates the need for mandatory laws to be passed. It is likely that the larger industry groups are protecting their interests and understand the ramifications of mandatory breach notification from their legal departments abroad.

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It looks inevitable that the bill will be passed and the public understanding of what is happening to their personal information will continue to increase.

Arranging an insurance policy, educating employees and instituting solid security processes will be key to mitigating this risk.

 

 

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3 years ago · by · 0 comments

Cyber Claims Examples from Small Businesses

insurance claim written

Where cyber insurance steps in

Today we take a look at how some small to medium Australian businesses responded and recovered from various cyber events and how their insurance was able to assist. In the past 12 months the majority of all cyber attacks against Australian businesses were targeted at small to medium size businesses. Many owners have heard the buzzwords and have seen the major international incidents on the news but haven’t seen relatable cyber claims from Australian businesses.

Eye Surgery Clinic

  • 2 Locations
  • 15 Employees
  • $8 million turnover

malicious email

Incident

An employee opened an email attachment which contained ransomware,  causing the Insured to lose access to their network of digital patient records. The cyber criminals demanded ransom payment in Bitcoin of approximately $6,000 at the time of writing. Both practice’s were able to continue trading however at greatly reduced efficiency as they had not used paper records for accepting and treating patients in years. Despite having access to some paper filing, the business was not able to raise invoices as this is part of a paperless system. Forensic Investigators were able to recover the vast majority of data and restore the paperless system.

Outcome

$126,000 in forensic IT expenses, First Party damage and lost work hours.

 

Law Firm

  • 1 Location
  • 55 Employees
  • $20 million turnover

Incident

An unknown organisation gained access to a law firm’s network and may have gained access to sensitive client information, including a public company’s acquisition target, another public company’s prospective patent technology, the draft prospectus of a venture capital client, and a significant number of class-action lists containing plaintiff s’ personally identifiable information (PII). A forensic technician hired by the law firm determined that malware had been planted in its network. Soon after, the firm received a call from the intruder seeking $10 million to not place the stolen information online.

Outcome

The law firm incurred $2 million in expenses associated with a forensic investigation, extortion-related negotiations, a ransom payment, notification, credit and identity monitoring, restoration services and independent counsel fees. It also sustained more than $600,000 in lost business income and extra expenses associated with the system shutdown.

$2.6 million total costs

 

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Raw Materials  Manufacturer

  • 1 Location
  • 28 Employees
  • $7.5 million turnover

cyber security, lock

Incident

The Insureds system was hacked via an email they received carrying a Ransomware virus. The virus prevented them from having any access to emails and their network. The criminals held the clients system to ransom and would only release files if the client paid $12,500. The fact that the client had numerous file shares and common storage areas made their system particularly vulnerable to attack and made it easy for the ransomware to encrypt nearly every file in their system.

Outcome

$12,500 in ransom costs plus an additional $25,000 in IT expenses related to diagnosing the problem, decommissioning the old servers and installing a new network.

Hardware Store

  • 1  Location
  • 20 Employees
  • $5 million turnover

Incident

An employee at a hardware store ignored internal policies and procedures and opened a seemingly innocuous file attached to an email. The next day the hardware store’s stock order and cash registers started to malfunction and business trade was impaired as a result of the network failing.

Outcome

The hardware store incurred over $100,000 in forensic investigation and restoration services. They also had additional increased working costs of $20,000 and business income loss estimated at $50,000 from the impaired operations.

$170,000 total costs

 

Health Clinic

  • 1 Location
  • 7 Employees
  • Turnover: unknown


Medical practice

Incident

A small health clinic discovered that an unauthorised third party had gained remote access to a server that contained electronic medical records. The third party posted a message on the network stating that the information on the server had been encrypted and could only be accessed with a password that would be supplied if the insured made a “ransom” payment. The insured contacted law enforcement and working with law enforcement, determined that the payment ($2,500) should be made. The payment constituted cyber extortion monies under the policy. Furthermore loss of business income amounted to $65,000 and IT forensic costs of $5,000 were paid in accordance with the coverage provided by other sections of the policy.

Outcome

$72,500 in ransom, forensic IT and lost business income costs

 

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Conclusion

Regardless of staff size, turnover or industry, all businesses have a possible exposure from the ever increasing reliance on information technology. From most reports it is only a matter of time rather than a matter of being secure or not.

More cyber claims examples each month

Thanks to DUAL, Chubb and LUAW for their claims examples.

 

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3 years ago · by · 0 comments

5 malicious emails to be aware of!

Malicious Emails Continue to Compromise

Here is our January 2017 wrap-up of large scale malicious emails making the rounds for Australian businesses.

We have all received some suspicious emails in the past and laughed at the seemingly obvious red flags, it appears that gone are the days of the poorly translated foreign prince simply trying to return your unknown wealth. Today, as employee education continues to increase, criminals are very fastidious and clever with their malicious email phishing attempts.

To verify or report a scam contact the ATO Scam Report or ScamWatch.

Australia Post

Earlier this month a torrent of Australia Post scam emails were discovered with a simple method of infection designed to evade anti-virus software. At the time of discovery by MailGuard, only 1 of 68 popular antivirus vendors were detecting the link as malicious

The message indicates a parcel is ready for collection at their local post office, simply confirm your correct postal address by clicking the link at the bottom of the email.

Malicious Aus Post Email

Malicious Australia Post Email

replica aus post website

Replica Australia Post Website

 

After clicking to confirm, a series of prompts leading to an identical Australia Post website end with a remotely executed malicious file being downloaded. An identical Australia post website has been created with the noticeable difference being the www.auspost.tk address instead of the official www.auspost.com.au, the malicious website even has ‘Captcha’ security forms and correctly scales for mobile users.

 

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Australian Securities and Investments Commission – ASIC

Reports of fake emails claiming to be from ASIC are making the rounds and distributing malware at an alarming rate. “Malware can reformat your hard drive, alter, delete or encrypt files, steal sensitive information, send unauthorised emails, or takes control of your computer and all of the software on it.”

“The message claims to contain an important message. But those who click to the link inadvertently download a malicious JavaScript file. The file is housed within a zip file on a compromised SharePoint site.” said Jaclyn McRae of Mailguard.

The emails have been disguised using a third party program which causes them to appear to be sent from a legitimate @asic.gov.au account.

Scam-impersonation - asic

ASIC email scam

According to MailGuard, at the time of reporting, none of 68 well-known antivirus vendors were detecting the link as malicious.

“Scammers pretending to be from ASIC have been contacting Registry customers asking them to pay fees and give personal information to renew their business or company name,” “These emails often have a link that provides an invoice with fake payment details or infects your computer with malware if you click the link.”ASIC says.

Australian Taxation Office – ATO

The next government organisation being impersonated is the Australian Tax Office. The malicious emails are coming from a recently registered set of domains with slight variations to the correct ATO web address which is https://www.ato.gov.au.

“The email looks quite legitimate, and includes the recipient address within the text body. It includes Australian Government branding and confidentiality clause.”said Jaclyn McRae

The email contains a Microsoft Word attachment which the recipient is told requires their attention.

ATO - scam email

ATO scam email

“The attached document contains a a macro which when executed, downloads a virus from a remote location.”

malicious-email-macro

Microsoft Word Malicious Macro

We’ve recently written about malicious Microsoft Office macros and other methods of infection, here.

“Adversaries are increasingly using Microsoft Office macros – small programs executed by Microsoft Office applications such as Microsoft Word, Excel or PowerPoint – to circumvent security controls that prevent users from running untrusted applications. Microsoft Office macros can contain malicious code resulting in a targeted cyber intrusion yielding unauthorised access to sensitive information.”

Commonwealth Bank

Apart from government departments, financial services giants are also regular targets. ANZ, Macquarie and AMEX  have been recent targets of phishing scams.

malicious-email-commbank

Commonwealth Bank scam email

Very similar to the above mentioned ATO email scam, Commonwealth Bank customers have been sent the above secure message requiring the attached content to be downloaded. Once again, the Microsoft Macro contained in the Message.doc attachment downloads a virus from a remote location. Once recipients ‘enable editing’ and then ‘ enable content’ the virus is activated.

According to the MailGuard Security Blog , the malicious emails were sent from cloud-hosted servers in Hong Kong but the attack could have originated anywhere.

Driving Infringement Notices

A round of malicious emails poorly disguised as driving infringement notices has been targeting Australians for a few months. The continued attempts from criminals suggests some measure of success.

Despite having no branding, the ‘from’ name having no relationship to the sending domain and no reference to which police authority had issued the fine, it seems many targets have taken the bait.

According to MailGuard, “The malicious emails claim the recipient has incurred a fine for negligent driving. It says the fine will arrive in the mail, but that it can be viewed by clicking the link.”

 

malicious-emails-fine

Negligent driving scam email

The “photo proof” attachment contains a link which accesses a malicious ZIP archive and allows malicious software to be downloaded.

Conclusion

Thanks to MailGuard, subscribe to the security blog for regular updates here.

Each month we will try to highlight some common email scams targeted at the Australian market.

If we have missed a scam you think is important, please let us know below.

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3 years ago · by · 0 comments

Lloyd’s CEO on Cyber Insurance

 

Lloyds of london logoLloyd’s of London better known as Lloyd’s is a corporate body which brings together multiple financial backers to pool and spread risk. These financial backers are grouped into syndicates, the syndicates referred to as underwriters or members are a collection of corporations and private individuals. In 2015, there were 84 syndicates that wrote £26.69 billion of gross premiums on business placed by 242 Lloyd’s brokers globally.

In the insurance industry Lloyd’s is one of, if not the biggest player with their syndicates having international bases and insight from markets around the globe.

In the past cyber insurance has been a relatively unknown product but this is all changing faster than the majority of businesses can keep up with. Expert predictions for 2017 are already indicating a lot more to come with no end in sight for historical breaches such as the 2014 Yahoo breach which was only discovered in 2016.

The current Chief Executive Officer for Lloyd’s and the first female CEO in the insurance market’s 328-year history is Dame Inga Beale. Heading the insurance market behemoth with regular insight into global insurance markets puts Mrs. Beale at the forefront of international business risk.

CEO- lloyds of london

Inga Beale, Lloyd’s CEO

Beale spoke with Intelligent Insurer regarding the increase in businesses of all sizes taking up cyber policies over recent years.

“In Australia, Lloyd’s has seen the amount of cyber insurance being purchased increase 168-fold in the last two years, as the risk becomes more of a concern for businesses.”

“In 2016 we’ve seen highly publicised cyber-attacks on some of the biggest corporate and retail names in the UK and globally. The effect of these breaches is multi-layered – besides business interruption, they can have a long lasting reputational impact and seriously affect the bottom line,” Beale, said.

“The problem is that I think there’s a slight disconnect between clients and their understanding of what’s on offer, and perhaps even a lack of understanding within the insurance sector,” Beale said while speaking at CFC Underwriting’s Cyber Symposium event in London last Thursday.

Mandatory breach notification laws

“What we have seen elsewhere in the world is as soon as you’ve got some regulation out there, a requirement for businesses to report breaches when there is a loss of personal data, that is one of the key drivers for elevating the risk up to the boardroom.” Beale stated.

Mandatory data breach reporting laws have been passed in the United States and other countries so far with the Australian bill passing through parliament at the time of writing. Under the new bill, organisations that determine they have been breached or have lost data are required to report the incident, and notify customers that are directly impacted or considered “at risk”.

Organisations and individuals that don’t will face a range of penalties, including fines of $360,000 for individuals and $1.8 million for organisations.

Safeguard your business with cyber insurance.

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Why Cyber Insurance?

“I’m afraid we no longer live in a world where you can prevent breaches taking place, instead it is about how you manage them and what measures you have in place to protect your business and importantly, your customers. As recent events have shown, hard-earned reputations can be lost in a flash if you do not have the correct plans in place.”

“There are two types of businesses. Ones who are being hacked and those who don’t know they are being hacked” Inga Beale.

“Insurance can play a critical role in helping businesses in this environment, not just in terms of cover for any financial losses, but for the support regarding meeting regulatory obligations and dealing with potential operational and reputational fall-outs.

The evolving cyber threat and new stricter regulations will change the way businesses are impacted by cyber incidents: they will have to deal with business interruption, financial penalties, regulatory scrutiny and reputational damage in a way they haven’t done before. All of these could be serious threats to a business’s revenue, share price or even survival.

That’s why, today, Lloyd’s views cyber as one of the most complex, current and critical risk businesses face.

Future expectations

“Our research has shown that cyber risk increasingly sits at the most senior level of business, and although the UK and Europe are still lagging behind the US in terms of take up of cyber coverage, the Lloyd’s market has seen a threefold increase on cyber business over the past two years, and we expect it to continue to grow in 2017.” Beale said.

With all reports for 2017 indicating a continued growth for cyber crime and mandatory reporting laws coming into effect around the globe, the time for robust cyber insurance and cyber security practices is now.

Safeguard your business with cyber insurance.

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3 years ago · by · 0 comments

Cyber Crime, What is it worth?

Black market economy

Have you ever wondered what the financial incentive for cyber criminals is? Many experts are reporting a staggering $1 billion was taken in from ransomware alone in 2016 not counting the other options for cyber crime.

For years we have repeatedly seen stories in the media about shadowy criminals making purchases with your credit card online and the onus being put onto the financial institution to identify,block and refund these transactions. Today things have escalated drastically and the black market for information has a broad range of options from online reward point accounts, medical records, auction site accounts and tutorials for new people interested in cyber crime. This escalation also means that the responsibility for online security is shifting to the personal side instead of solely the vendor.

Below are a few examples of the many ways cyber criminals are making money online from your accounts and information. Whether they are taking a website down to stop trade, extorting hospitals with sensitive patient information, auctioning hacking tools and guides for new criminals or just use of your netflix subscription, there is a market for it and it is thriving.

  • Bank details

Selling credit card numbers has been a classic source of revenue for cyber criminals. Although the market is starting to lean towards more specific details like medical records for social engineering and fraud purposes, credit card information is still a strong source of revenue.  As can be seen below from a 2016 McAfee report, full card and personal details for a little as $40.

“Everything is available. We see bank-to-bank transfers offered for sale, and the availability of banking login credentials.”

Bank credentials for a specific account to drain funds has a higher value which runs as a percentage of the account balance. Usually around 1% – 5% of the available balance.

  • DDoS Rental Services

A DDoS attack will overload a victims website causing it to crash and prevent access until the attack stops. A frozen website can cause an instant halt to sales and have ongoing reputational damage. In 2016, 84% of Australian small and medium businesses are online with that percentage expected to increase in 2017.

The average cost to the victim of a DDoS attack is around $500USD per minute, the mean cost to the attacker is only $66 per attack.  The cost to launch a DDoS attack is so low that the barrier to entry for attackers is practically nil – and that means that any organization can potentially be the target of a DDoS attack. What is a DDoS attack?

Russian DDoS advertisement

  • Exploit kits

Exploit kits are designed to be a ready to launch hacking tool, with many different variations available online for the budding cyber criminal to purchase and start causing mischief. One case of a student in Virginia, USA is facing a 10 years prison sentence after creating a key logger tool which records keystrokes and ultimately account information on the victim’s system. The student offered the nefarious tool for sale at $35 USD and sold to around 3,000 people who, in turn, infected over 16,000 victims, the U.S. Attorney’s Office said.

Using those numbers, his personal incentive for the key logger tool was approximately $105,000 USD which is certainly an attractive figure for any would-be cyber criminal.

Ransomware is malicious software which once it has infected a system the software will encrypt important files rendering the operations frozen until the victim pays a ransom usually demanded in bitcoin. Multiple ransomware kits have been found for rent in online marketplaces for as little as $1,000USD a month or $100USD for 48 hours.

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  • Online rewards programs

Online rewards programs such as account information for airline points have also been found for sale on cyber crime marketplaces. According to the report 300,000 airline points for as low as $90USD which is very concerning after the recent reveal that 90% of airline booking systems are insecure.

“Flight bookings worldwide are managed by the so-called Global Distributed Systems (GDS) that connect travel agencies, online booking websites, airlines and passengers. Amadeus, Sabre, and Travelport, the three largest GDS networks, administer more than 90 percent of the bookings as well as numerous hotel, car, and other travel reservations, according to Security Research Labs (SR Labs), a Berlin-based hacking research collective.”

  • Compromised organisation & infrastructure access

Other types of data for sale include access to systems within organizations’ trusted networks. The types of entry vary, from very simple direct access (such as login credentials) to those that require a degree of technical competence to carry out (such as vulnerabilities). We can see the availability of vulnerabilities that allow potential buyers access to bank and airline systems located in Europe, Asia, and the United States.

A recent report by cyber crime expert Idan Aharoni suggests that the types of systems criminals sell access to now include critical infrastructure systems. In his article “SCADA Systems Offered for Sale in the Underground Economy,” Aharoni included one example in which a seller provided a screenshot that appears to be a French hydroelectric generator as evidence that the seller had access.

Stolen enterprise data is also for sale, we have seen sellers offering data stolen from a university.

  • Medical Records

One of the fastest growing areas of data theft is the medical industry. Client records have been shown to be extremely valuable in the black market community for a number of reasons. One reason is the level of detail which medical records hold. Most medical records hold sensitive information which financial institutions are not privy to for example full name, age, family history, government ID numbers and other details used for social engineering.

Another reason medical records have increased in value is their extortion value to the holding hospital or medical practitioner. “A breach happens at one of these companies. The hackers go direct to that company and say, ‘I have your data.’ The cost of keeping this a secret is X dollars and the companies make the problems go away that way,” said Greg Virgin, CEO of the security firm RedJack.

  • Online Subscription Services

Netflix, HBO, Spotify, etc are just a few of the online subscription services for digital content that are available to purchase for a low as $1 USD. High demand for these accounts can be seen from the widespread listings in the marketplace despite their seemingly low value.

video streaming services are in high demand. Even premium professional sports streaming services can be purchased for $15. We also found other online accounts being sold, including lifetime subscriptions to premium pornography accounts, as well as free referral links to the dark web market Agora.

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It is unclear how 2017 will unfold with reports already saying 123456 is still the world’s most popular password but if that is any indicator of the state of personal security, 2017 is going to be a very lucrative year for cyber criminals.

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3 years ago · by · 0 comments

Cyber Security Resources For Australian Businesses

“Employees still remain the most cited source of compromise”

With each new report the cyber security expert consensus remains the same regarding internal culture to self mitigate. The below is an excerpt from the latest Australia Securities and Investment Commission (ASIC) Cyber Resilience Assessment Report: ASX Group and Chi-X Australia Pty Ltd.

“There is clear recognition that effective cyber resilience requires a strong ‘cultural’ focus driven by the board and reflected in organisation-wide programs for staff awareness, education and random testing, including of third parties.”

The Global State of Information Security Survey from PricewaterhouseCoopers also noted that “employees remain the most cited source of compromise”.

cyber security, lock

 

Cyber security resources to help you stay up to date

Keeping your staff up to date with security best practices is one of the best ways to prevent an exposure.

Beginner step-by-step courses and advice to raise security awareness and protect your business & data from aggressive cyber threats.

CERT Australia (the CERT) is the national computer emergency response team and are the point of contact in Government for cyber security issues affecting major Australian businesses. The CERT is part of the Federal Attorney-General’s Department, with offices in Canberra and Brisbane.

At least 85% of the targeted cyber intrusions that the Australian Signals Directorate (ASD) responds to could be prevented by following the Top 4 mitigation strategies listed in our Strategies to Mitigate Targeted Cyber Intrusions.

“This Cyber Security Strategy sets out my Government’s philosophy and program for meeting the dual challenges of the digital age—advancing and protecting our interests online.” Hon Malcolm Turnbull MP

CREST Australia New Zealand Ltd, a not for profit company, runs CREST Australia New Zealand on behalf of member companies and provides assessment, accreditation, certification, education and training in cyber and information security for individuals and corporate entities and promotes the provision of high quality, best practice information security services according to its company constitution.

MailGuard is one of Australia’s leading technological innovators and the world’s foremost cloud web and email security service, providing complete protection against web and email security threats like malware, ransomware, spyware, phishing, spear phishing, viruses, spam and similar malicious scams in 27 countries around the world.

“This comprehensive report is a must-have reference for C-suite executives, senior managers and anyone new to the information security management space.”

Each year the government departments release their collective data for an eye opening report about national, commercial and private online security.

CSO provides news, analysis and research on a broad range of security and risk management topics. Areas of focus include information security, physical security, business continuity, identity and access management, loss prevention and more.

The SANS Institute was established in 1989 as a cooperative research and education organization. Its programs now reach more than 165,000 security professionals around the world. SANS is the most trusted and by far the largest source for information security training and security certification in the world.

“Everything you want to know about cyber security and are too tired to search for.” Whatever you may be interested in – from DEF CON to SANS – you will find on this page.

Conclusion

As the emphasis on employee exploitation tactics continues, the more important it is to educate all staff. Cyber Insurance Australia will continue to update this cyber security resource list as more valuable resources are discovered. For any additions please comment or message.

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3 years ago · by · 0 comments

Australian cyber risk exposure calculated at $20 billion, warns Lloyd’s of London.

In a joint study with Cambridge University, the Lloyd’s insurance giant has ranked Sydney 12th out of 301 global cities in terms cyber attack exposure with $4.86 billion ($6.36 billion) of GDP at risk for 2015 – 2025.

In its City Risk Index 2015-2025, Lloyd’s also ranked other Australian cities in the study, Melbourne’s economic risk was measured at $US3.87 billion ($5.06 billion), followed by Canberra at $US2.8 billion ($3.66 billion).

Brisbane’s risk was $US2.05 billion ($2.68 billion), Perth’s $US1.83 billion ($2.39 billion) and Adelaide’s $US1.01 billion ($1.32 billion).

Globally, Lloyd’s warns that $294 billion is at risk as attempted and successful cyber attacks become more prevalent.

“We are living in a world where people carry a globally connected supercomputer in their pocket and almost every important work document is stored in the cloud, on servers or online. The result is an explosion in the potential for cyber risk.” Lloyd’s Global CEO Inga Beale stated during a recent visit to Sydney.

“The latest series of high-profile data breaches is just the beginning,” she said. “With the emergence of the Internet of Things, the potential for cyber risk is enormous.”

Lloyd’s has seen the amount of Cyber Insurance coverage increase 168-fold in the past two decades in Australia with more businesses seeking to protect themselves.

In the US 25% of businesses now have cyber insurance. Europe should catch up after the EU introduces its General Data Protection Regulation in 2018.

The regulation, with implications for Australian business holding European customer data, requires disclosure of breaches to national data protection authorities and potentially affected individuals.

Source: http://bit.ly/2h6aOhE

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