President Obama Raises Cyber Threats in “State of the Union Address”

Recognizing the seriousness and increasing frequency of cyber attacks, on January 20, 2015, President Obama called for new laws that require companies to report information breaches to customers within 30 days along with other legislation.

Key Take-Away for YOU: In 2013, data breaches affected medical and healthcare organizations the most among all occupations in the United States, accounting for 44% of all data breaches recorded by the Identity Theft Resource Center at idtheftcenter.org.

The services industry is hit hard in particular and outpaces all other industries. The “Professional Services” occupation is victimized the most and spent an average of $326 per employee in 2013 on cyber attack counter-measures. (Reported by Gartner Group; Insurance Information Institute: From The Wall Street Journal: “Financial Firm Boost Cybersecurity Funds”; Nov. 17, 2014.)

You can buy Preferra cyber liability insurance coverage for less than one-quarter of that cost.

The Gartner Group reported that Cybersecurity spending is rising sharply, up 8% each year through 2016, with a projected spend of $12.1 Billion. The United States Ponemon Institute reported that cybercrime costs in 2013 occurred in these categories the most: 43% information loss, 36% business disruption, 17% lost revenue, and 4% damaged equipment devices.

The Preferra insurance solutions offered through Preferra Insurance Company protect you from these cyber attacks. Preferra offers end-to-end protection for you starting with Risk Management training in best practices and security; loss transfer by shifting your risk to the RRG insurance company; and post data breach response through the insurance policy coverage with Western Litigation performing insurance claims adjudication.

Cyber attacks on YOU are very real, and social workers admit that they are unsafe. Initial findings from a recent survey indicate that the vast majority of respondents feel “very unsafe” and have a high propensity to be victims of cyber attacks due to their high use of electronic devices and responsibility for the privacy of client patient information, including performing casework in a variety of locations.

Likewise, we see cyber attacks being repeatedly reported by the national news media on large companies such as Target, Home Depot, and Sony Pictures. We don’t hear about the much more frequent cyber attacks on the service and healthcare professionals, who are being attacked by the thousands. In anticipation of additional federal laws being adopted following up on 2013 HIPAA HITECH legislation, the rush for protection has so far caused over 28% of companies to hire a CISO (chief information security officer), and to buy cyber liability insurance. Most the CISO professionals are high quality and expensive talent recruited from the F.B.I., National Security Agency, the U.S. Treasury enforcement organization, and from the C.I.A. intelligence communities.

Unfortunately many companies, social services agencies, and social workers lack the budget for this high caliber safety net to counter cyber attacks. However, in many cases, the risks can be shifted to insurance companies such as the Preferra insurance company. Right now, Preferra Insurance Company offers three insurance solutions that protect social workers.

Right now, YOU can buy a fully comprehensive Cyber Risk insurance policy from Preferra that provides multi-million coverage for yourself, your practice or your Agency at a premium about equal to your car insurance premium.

Right now, YOU can buy a Preferra cyber liability policy that responds to all cyber attack categories against YOU for an annual premium of under $100.

Right now, if YOU have an Preferra Professional Liability policy through NASW ASI, you are automatically covered, at no additional cost, for cyber attack damage and repair or replacement of damaged or stolen computers and devices if the cyber attack and data breach arose with YOU being a victim of an Assault. The F.B.I. reported that in the past 3 years, over 5,500,000 laptops and information on them were stolen, and only 3% were ever recovered.

Published March 2015