Accidental Data Breaches Continue To Cost Insurers

In 2017, the most dangerous market facing insurers remains digital. Cyber and data breach insurance company, Beazly released a new report detailing data surrounding cyber-security breaches and found that cyber attacks show no sign of slowing down.

According to this new report, ransomware attacks continued to rise during the first part of 2017–up 50% from the same time period in 2016. While that data is not overtly surprising, what is is Beazly’s findings that 30% of all security breaches are a result of employee error or issues arising while data is controlled by a third-party supplier. By comparison, breaches caused by malware or hacking only account for 2% more, for a total of 32%.

This data is important because if finally gives companies a concrete reason to invest, not just in IT security, but in IT security training for their staff. According to these results, you could have the best firewall in the world, but odds are an employee will accidentally hand someone the ladder they need to get past it.

It’s important to note that different types of businesses are more prone to different kinds of breaches. For example, two most sensitive types of data, financial and healthcare, suffered some of the highest rates of employee-caused security breaches. This is likely because these large companies are investing in actual security software and not basic employee training. Hopefully this data will be a stepping stone in reversing that pattern of action.

Unintended disclosure also accounted for many of the losses in the healthcare sector, accounting for 42% of data security breaches for the second consecutive year.

All of this information is based on the new Beazly study that surveyed 1,330 data breaches at various companies during the initial six months of 2017.

Sources:

https://www.beazley.com/news/2017/ransomware_attacks_steal_headlines_but_accidental_data_breaches_remain_a_major_cause_of_loss.html