Cyber Crime’s Forgotten Victim—Your Company’s Reputation

Posted on January 15, 2016 by Marijana Dabic

Even though companies are finally starting to dedicate resources to prepare for cyber attacks, it’s possible that they may be overlooking a key exposure. While internal audits, hardware and software upgrades, and payouts to impacted customers can be costly, those costs can quickly be dwarfed by the damage a cyber attack can do to a company’s reputation.

The Dark Side of Social Media

Social media poses a huge threat to your company’s reputation. In the event of a data breach, traditional media coverage, blog posts and consumer reaction to the breach will dominate discussion of your company’s brand across social media platforms. Social media newsfeeds offer little to no distinction between legitimate news, biased reports, rumors and outright falsehoods, making the problem worse.

Additionally, social media is the perfect battleground for a competing interest to launch an attack on your brand. In fact, a white paper released by Hays suggests that the deliberate spread of false information about companies could be part of the next wave of cyber attacks launched by foreign governments.

Managing Your Reputation

In the wake of a cyber attack, it’s important to have a social media strategy in place and ready to roll out, as well as a team dedicated to monitoring social media in order to dispel any rumors and clarify any falsehoods. It’s also important to consider all avenues for mitigating your risk.

The Benefits of Legal Expense Insurance

Posted on January 6, 2016 by Marijana Dabic

Legal disputes can disrupt any business, large or small, and the subsequent legal expenses can be costly. In fact, a two-day civil trial can cost upwards of $26,000. Often, businesses may have to pay for these legal expenses out of pocket, which, in turn, could negatively impact their bottom lines or worse, push them into bankruptcy. To protect themselves, more and more Canadian businesses are purchasing commercial legal expense insurance (LEI).

LEI is standalone insurance designed to protect policyholders from the costs and hassles of legal action brought on by or against policyholders.

Generally, businesses carry commercial general liability (CGL), directors and officers (D&O), employment practices liability (EPL), and errors and omissions (E&O) policies to cover the costs of legal action. However, these types of policies are often insufficient and designed only for specific issues.

In contrast, LEI kicks in following a legal dispute and is meant to fill gaps in coverage. LEI covers the majority of the common legal risks businesses may face. Specifically, LEI covers legal costs associated with the following seven main categories:

Employment disputes
Legal defence
Contact disputes and debt recovery
Statutory licence protection
Property disputes
Bodily injury
Tax protection

As an added benefit, when a business purchases an LEI policy, it may also gain access to a legal helpline, which is staffed by attorneys and other experts. Companies can use this helpline to ask questions about any business-related legal matters, including tax advice. This is meant to guide policyholders through tricky situations and prevent legal trouble before it occurs.

It should be noted that each of the categories listed about has its own set of subcategories, so it’s important for businesses looking to purchase LEI to do their research.

Protecting Employees Working Abroad

Posted on December 22, 2015 by Marijana Dabic

With the recent terrorist attacks still fresh on everyone’s minds, the conversation around protecting employees working abroad has never been more important. And, the dangers employers must consider are numerous—from terror threats to natural disasters.

To protect workers, employers should ask themselves the following questions:

Do we have an overseas travel policy in place? If so, does it include approval processes for travel, risk evaluations of the destinations being visited and a plan to track, contact and protect travellers?
Are we providing our employees with security escorts and a safe means of transportation throughout the duration of their trips?
Have we provided safe and protected housing for the travelling employees?
Have employees been trained on what to do in the event of an emergency? Does that training include how to remove themselves from potentially dangerous situations?
In addition to the above, it’s critical that employers have the proper insurance in place for their workers. Before purchasing a policy, companies should examine their businesses and personnel in order to select the right coverage options.

Often, the types of events businesses may want to plan for include kidnappings, hostage and ransom crises, assaults with weapons, extortion threats, evacuations, and medical and psychiatric care.

Are You Prepared for a Cyber Attack?

Posted on December 16, 2015 by Marijana Dabic

In its annual Global Information Security Survey, Ernst & Young found that more than one-third of organizations worldwide lack confidence in their ability to detect sophisticated cyber attacks.

The survey was designed to take a closer look at some of the most important cyber security issues facing businesses, and it found that the majority of cyber attacks come from criminal syndicates and “hacktivists.”

In addition, the survey identified two major vulnerabilities that all companies face: careless or unaware employees and outdated information security controls.

To help limit these vulnerabilities, Ernst & Young suggests that businesses clearly define their cyber risks and prioritize their cyber-security investments.

U.S. Officials Charge Three in Massive Cyber Fraud Case

Posted on December 10, 2015 by Marijana Dabic

In what’s being touted as the largest cyber fraud case ever uncovered, three suspects have been tied to an estimated eight-year hacking scheme that targeted 100 million customers of over a dozen U.S. companies.

It is believed that the hackers were involved in a variety of illegal activities, including manipulating publicly traded stocks, stealing email accounts, processing payments for pharmaceutical suppliers and running online casinos.

Initial reports suggest that the hackers were able to steal hundreds of millions of dollars from companies like JPMorgan Chase & Co., E*Trade Financial Corp. and more by using about 200 fake identity documents, among other tactics.

The case, which is being described as a new frontier for cyber fraud, illustrates that even global companies that spend large amounts of money on cyber security aren’t immune to attacks. The accused hackers face 23 counts of fraud and other illegal activities.

Archives

Cyber Crime’s Forgotten Victim—Your Company’s Reputation

The Benefits of Legal Expense Insurance

Protecting Employees Working Abroad

Are You Prepared for a Cyber Attack?

U.S. Officials Charge Three in Massive Cyber Fraud Case

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