What cyber claims have we seen lately?
Here are a few:
#1 – Stolen Employee Laptop
A regional life insurance company moved to new offices. During the move, several laptops, computers and printers were stolen. One of the laptops contained personal information, including social security numbers of over 36,000 clients. Forensic investigation expenses, legal fees, and notification expenses totaled over $200,000.
#2 – Fraudulent Wire Transfers
The accounting department at an electronics manufacturing company discovered a series of unusual wire transfer requests during a quarterly audit. After further investigation, it was determined that the e-mail accounts of several executives had been compromised, and, as a result, several wire transfer requests had been sent to the accounting department by hackers using “spoof” email accounts. Over $600,000 in funds had been transferred to unknown bank accounts in four countries. Some of the funds stolen in the fraudulent wire transfer were reimbursed by the bank. Cyber Crime insurance covered the amount not reimbursed by the bank.
#3 – Cyber Extortion
An employee at a law firm opened a link in an email that appeared to be sent by another employee of the firm, but was actually sent by a hacker. The link contained a ‘CryptoLocker’ virus that, when opened, immediately began to encrypt all files on the employee’s computer, including the firm’s finance and payroll files. The virus was discovered when the employee tried to access a file, and an alert appeared on the screen, notifying that all files had been encrypted and could only be unlocked if a ‘ransom’ was paid in BitCoin. An IT expert was retained by the firm’s cyber insurance company to investigate the threat. The IT expert determined that the threat was credible and advised the firm to pay the ransom to recover the files and avoid further exposure and/or loss. Cyber insurance paid for the ransom payment, IT costs and legal expenses, which totaled approximately $10,000.