Advertise Here
Icon

Directory

IconAccounting & Tax
IconAccreditation Bodies
IconActuaries
IconAssociations and Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCompany Secretarial Services
IconCompare Medical Scheme Benefits
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconEmergency Medical Rescue
IconExpatriate Cover
IconFAIS
IconHealthcare Consultants
IconHuman Resources
IconInformation Technology and Software Partners
IconLegal
IconManaged Healthcare Service Providers
IconMedical Aid Administrators
IconMedical Aid Schemes
IconMedical Schemes Trustees Liability Insurance
IconMedical Service Providers
IconOmbud
IconPolicy Administration
IconPublications
IconRegulatory Authorities
IconSurveys & Research
IconTraining Courses & Workshops
IconWellness Programs
Image
  Subscribe To »

2017 - The year of the Cyber Attack

Published

2018

Fri

16

Feb

 

The year 2017 was a horrendous one in terms of the number and scale of widely publicised data breaches

By Ethan Pitts, Camargue Underwriting Managers

The year 2017 was a horrendous one in terms of the number and scale of widely publicised data breaches; the ramifications of which will be felt by the affected companies and persons for years to come. A magnitude of attacks rocked the world over the last twelve months, including an array of new ones which have become infamous due to the extent of their destruction. A few of these include, but are not limited to, the following: WannaCry, Petya, Not-Petya, the Equifax breach, Verizon and NSA breaches. Even brands which have always been synonymous with ‘unbreakable security’ such as Apple, have been sorely tested.

In 2017 thousands of Apple Mac users had a 50% chance of being infected by a Trojan (a type of computer virus) which had infiltrated Mac’s standard video encoder, HandBrake, allowing hackers to steal passwords from their keychain. To add insult to injury, 2018 did not get off to a prosperous start, either, as a new exploit was discovered which allows a skilled hacker to read the encrypted information on any device with an Intel Processor (including all Apple products).

Apple is not the only targeted enterprise. The international transport and freight giant, Maersk, suffered a USD $300m loss revenue following the Petya epidemic, according to their CEO, Søren Skou.

Whilst international companies tend to make news headlines, South Africa has not escaped the hit-list in terms of cyber-criminals looking to expand their revenue stream. Recently, the personal information of thirty-three million South Africans was found on the Dark Web. Considering the delay in the announcement of the implementation date of the Protection of Personal Information Act (“POPIA”), which will require juristic and natural persons to disclose breaches, insurers are currently well-positioned to observe the growing number of incidents within the economy (as a direct result of an adverse claims experience).

As seen in recent years, the number of records stolen in a breach and the type of companies affected becomes a blur. Gone are the days of attacks being confined to large retailers, healthcare provider’s and financial institutions. The connectivity between businesses and people is ever growing and evolving. With this, and the rapid pace of innovation within the technology sector, people and businesses are exposed to risks which traditionally did not pose considerable threat; and that historical risk-transfer mechanisms are ill-equipped to address.

Understanding the wide array of technological risk faced on a daily basis requires in-depth expertise and knowledge, which is not viable for the average business owner. Understanding what the key exposures are to one’s specific business and industry, as well as knowledge of solutions available, is an effective approach to managing and mitigating cyber risk and exposure.

For the most part, companies effected by cyber-attacks in 2017 experienced the following:

1. Loss of revenue due to a failure of the IT system and network. Think of a large online retailer whereby the payment portal on their website is compromised for just one day and the financial ramifications thereof. Large-scale manufacturers have been similarly affected when their factories are compromised.

2. When confidential information is accessed and exploited, this results in notification costs to contact the subjects whom are effected by the breach (via post, email or telephone); costly legal actions and defence costs, as well as potential regulatory fines and penalties for non-compliance with data protection laws specific to the territory in question.

As the majority of business owners are not cyber security experts, it is reassuring that there are risk management professionals whom are able to assist in identifying cyber risk and tailoring specific solutions to address these exposures. A comprehensive cyber insurance policy is one way in which a business can transfer cyber risk off its balance sheet, thereby protecting the bottom line and reputation of the organisation in the event of a cyber related incident. 

 
Source: Camargue Underwriting Managers
 
« Back to previous page Print this page » |
 

Breaking News »

POPI BREACH COULD MEAN FINES OF UP TO R10 MILLION AND A 10-YEAR JAIL SENTENCE

Where to start for SA businesses?   09 July 2020: Parts of the long-awaited Protection of Personal Information Act 4 of 2013 came into force on 1 July 2020, and companies will have a period of one year ...
Read More »

  

POPI ACT IS NOW IN FORCE

FIVE STEPS TO ENSURE POPI COMPLIANCE FOR DIRECT MARKETING   07 July 2020: The Protection of Personal Information Act 4 of 2013 (POPI) has now come into effect and it is important that South Africa businesses ...
Read More »

  

POPI ACT - IMPLICATIONS FOR VARIOUS BUSINESS AREAS

02 July 2020: The long-awaited Protection of Personal Information Act 4 of 2013 comes into force on Wednesday 1 July 2020, and companies will have a period of one year to get their ducks in a row or risk substantial ...
Read More »

  

Lloyd’s presents solutions for global industry and government partnerships

Lloyd’s presents solutions for global industry and government partnerships to fast-track societal and economic COVID-19 recovery Open-source frameworks provide blueprint for better protecting society ...
Read More »

 

More News »

Image

Investment »

Image

Life »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Advertise Here

From The Glossary »

Icon

Registered:

In relation to a retirement fund, means registered or provisionally registered funds under Section 4 of the Pension Funds Act.
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2020. All Rights Reserved.