Historically, cyber security threats have been relegated to the IT department. As the 2011 Global Economic Crime Survey shows, cyber security threats are no longer just an IT problem.

In order to properly prepare for cyber security threats, organizations need to integrate cyber security-awareness into the culture, involving all employees and partners. If organizations fail to examine cyber security from every angle, they are leaving themselves exposed.

What the PWC Cybercrime survey revealed:

• Ranks among the top 4 economic crimes.
• 34% experienced economic crime in last 12 months (up 4%)
• 40% of respondents identified reputational damage as their biggest fear
• 60% of respondents admit to not monitoring social media sites
• 2 out of 5 respondents had no cyber security training
• 25% acknowledged that there is no regular formal review of cybercrime threats by the CEO and Board of Directors
• 48% of those who experienced economic crime in the last 12 months reported that they perceive the risk of cybercrime to be on the rise
  
  

How can you protect your organization against economic crime?

• Be aware of the current and emerging cyber environment
• Know who you are dealing with (staff, suppliers, partners and agents)
• Involve IT, Internal Audit and the Board of Directors in the fight against economic crime
• Implement a response plan for a cyber crisis
• Conduct regular fraud risk assessments
• Instill a cyber risk-aware culture through Cyber-Savvy leadership
• Recruit people with cyber security-relevant skills and experience

Unfortunately, some agents and insureds are under the impression that their crime policy will trigger coverage in the event of a cyber theft. The truth is, crime policies do not adequately protect insureds against cyber theft for the following reasons:

• Crime policies typically exclude the theft of information and do not address crimes committed by outsiders (i.e. cyber hacking, stolen laptops, stolen paper files)
• In today's information-rich environment, organizations of all kinds need to consider the following key coverage components:
  
  a) Costs to notify clients as required by law
  b) Costs to manage crises and recover reputation
  c) Costs to defend client or vender lawsuit(s)
  d) Costs to respond to regulatory investigations
  e) Costs to pay damages, fines, and penalties

Cyber security threats are constantly evolving and becoming more prevalent. S.H. Smith & Company's cyber security experts are the very brightest and most experienced in the business, so that you don't have to be.

*Info taken from http://www.pwc.com/crimesurvey and the 2011 Global Economic Survey, Cybercrime: Protecting Against the Growing Threat.

We invite you to contact us today to learn more about how we can ensure that your insureds have appropriate cyber security coverage.

Massachusetts Office
Dave Perkins
781-247-6223
800-735-1023 x 6223

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781-247-6225
800-735-1023 x 6225

Connecticut Office
Betty Shepherd
860-656-1362
800-356-0168 x 1362

Minnesota Office
Jeanine Loomis
651-414-3863
877-279-8500

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