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The Cyber Highway…Supply Chain Essential

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Are you on road to the Cyber Highway?

It is unlikely that your supply chain is travelling in this direction yet as this initiative was only launched last month in London by Lord David Blunkett, the chairman of Cyber Essentials Direct Limited.

The concept behind this is to help improve a businesses cyber security posture and to provide reassurances in their supply chain which traditionally can present a significant cyber security threat…… an area which businesses often overlook and who have little or no control over.

What is the Cyber Highway?

It is a user friendly on-line portal certification process aimed at large businesses who rely on their supply chains. Cyber Essentials is the certification process that will be utilized. which is a UK Government Scheme that was launched in 2014 to help businesses protect themselves against mainstream cyber attacks. During this process it will also be possible for businesses to monitor the progress of their suppliers in attaining Cyber Essentials accreditation.

https://www.thecyberhighway.com/welcome

https://www.gov.uk/government/publications/cyber-essentials-scheme-overview

Certain Government departments already require their suppliers bidding for contracts to be Cyber Essentials certified. This requirement is likely to become more widespread in other industries in the future as cyber security becomes an increasing focus in the commercial world.

The Benefits

  • It is designed for all business sizes
  • It is a series of clear self-assessment statements
  • The provision of a comprehensive quality assurance frame -work
  • A user friendly on-line platform
  • A fully integrated and comprehensive cyber security self auditing system
  • Provision of a complete range of accessible tools and solutions

Helping the Cyber Landscape

It assists in securing the supply chain of business

It protects the infrastructure of businesses with whom larger companies trade

Post BritExit it is important that British businesses hold a recognized cyber security certification and this will further highlight.

Cyber Claims in the Supply Chain 

One of the highest profile cyber claims is that of the Target Corporation which took place in 2013 where cyber criminals infiltrated a third party supplier in order to gain access to Target’s data network. This breach costs Target $61M and had a impact on their profits which fell 46% that year.

Stuxnet is a malicious computer worm that is normally introduced to the supply network via an infected USB flash drive and targets automated process that control machinery on factory lines. There have been a number of reported incidents involving Stuxnet.

On-line retailers is another business sector that can be susceptible to compromises due emanating from a supply chain vulnerability. Home Depot suffered a credit data breach in 2014 which was due to stolen credentials from a third party vendor.

Implications for Cyber Insurance

Cyber insurers are likely to favor the instigation of the Cyber Highway as this represents improved risk management to the supply chain of businesses which currently offers concern to them being an avenue for claims that it presents to hackers and the ability to compromise their computer systems that may lead to a data breach or resulting in cyber crime.

The Basics of a Cyber Insurance Policy

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Cyber Insurance Policy

What are the basics of a Cyber Insurance Policy?

This specialist form of policy provides coverage for internet based risks and data related exposures of a business.

It consists of third party and first party section where insurers follow a modular format, breadth of coverage varies from insurer to insurer. It is therefore important that you obtain the appropriate coverage once your cyber risks have been identified.

Cyber Insurance should not be considered in isolation and should form part of a businesses cyber risk management program.

The Basics of a Cyber Insurance Policy:-

1. Third Party Section

Network Security Liability

This provides coverage for a businesses liability to a third party as a result of the destruction of a third party’s electronic data. This also encompasses an inadvertent transmission of a computer virus to a third party.

Data Privacy Liability

This relates to liability to a third party which may cause unauthorized disclosure of personally identifiable information or corporate information.

Multimedia Liability

Your liability arising from content on your website as a result of a defamatory comment, infringement of copyright or invasion of privacy.

2. First Party Section

Network Business Interruption

This represents coverage for the interruption or suspension of your computer systems as a result of a network security breach or network failure , the later of which may not be automatically included. Insurers will reimburse a businesses and any expenses incurred in order to mitigate this.

Data Asset Protection

This provides coverage arising out of the corruption or destruction of your computer systems. The loss covered is the replacement and restoration costs.

Cyber Extortion

A threat to the computer network where a ransom has been demanded, this will include negotiation costs.

Crisis Management

Costs associated with responding to a data breach including forensic costs, credit monitoring, call center costs and public relations costs.

Vendors

In addition to the policy coverage , it is important that the insurer is able to provide “vendors” who will manage a data breach , this should include as a minimum a solicitors , a forensic investigation company and a crisis response team.

Possible extensions to a Cyber Insurance Policy:-

Certain extensions are available generally for an additional premium , such as coverage where network interruption that has been caused by an outsourced service provider or that outsourced service provider has suffered a system failure that impacts on a business.

Further extensions can include coverage where there has been a cloud service failure that affects a business and criminal reward fund that allows for a reward for information that leads to the successful conviction of a hacker.

The Policy Limit 

The policy will be on an “aggregate” policy basis, i.e. the total number of claims made in any one policy year will not exceed the annual aggregate.

The Policy Excess 

A self – insured excess will be imposed by insurers which is the first part of any claim that the policyholder will need to pay.

The business interruption module will also be subject to a separate excess which is normally an hourly figure. This section will be subject to an indemnity period , which is the period that the policy will provide coverage for this module.

Does a Professional Indemnity policy provide coverage for Cyber Liability?

Professional indemnity policies have developed in recent years to provide a broad basis of coverage know as “civil liability” It is generally accepted that this type of policy provides elements of coverage that would fall into the third party section of a cyber liability policy and are recognized as the following :-

  • Breach of privacy of third parties personal data or confidential corporate information caused as a result of a compromise of a computer system.
  • Defamatory comments placed on your website as a result of unauthorized access to your computer systems by a hacker.
  • Inadvertent transmission of a computer virus, logic bomb, worm or Trojan horse by an employee that causes damage or loss to third parties computer systems.

Professional indemnity policies have insuring clauses that are tied back to claims being made arising out of the professional business of firm however cyber liability requires a wider policy trigger such as those losses caused as a result of an unauthorized access of a firm’s computer systems.

Cyber Liability Extensions 

An number of professional indemnity insurers will provide various cyber insurance related extensions, such as hacker damage or cyber extortion, these are only normally for small sub-limits of the main policy. One point to bear in mind if cyber extensions are added to a professional indemnity policy which is on an aggregate policy basis, any claims made arising out of cyber claims will go towards the overall erosion of the overall aggregate policy limit.

Limitations

Some exclusions to take into account that may impact on the extent of cyber coverage under a professional indemnity policy are the deliberate acts and terrorism exclusions.

Not a substitute

The coverage for cyber liability under a professional indemnity policy should not be construed as a substitute for a stand alone cyber insurance policy and it is important that you seek proper advice from an insurance broker as to whether you have a requirement to purchase a cyber insurance policy.

 

Rio 2016 – The Cyber Threats

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Rio 2016

Rio 2016 is here …..expectations are high for another GB medal haul,  but this major sporting event is inevitably going to be a target for cyber attacks

Some facts that will make Rio 2016 a draw for hackers  …

  • Brazil is already recognized as hub for cybercrime ranking 10th in the Symantec 2015 Internet Security Threat Report
  • London 2012 experienced 165 million attempts to breach cyber security , at Rio 2016 it is anticipated that this could be 4 times this….
  • 5th August to 21st August presents a significant window for hackers to exploit
  • 37 Venues
  • 306 Events
  • 10,500 Athletes
  • 206 Countries participating
  • 7.50M Tickets available for the events
  • 500,000 overseas travelers expected in Rio de Janeiro

Why The Olympics?

Major sporting events grab the attention of the entire world but unfortunately this also attracts elements of the population who perceive this as an opportunity to be exploited  ….. the world of cyber crime.

The threat that cyber crime poses to an event such as this is similar to that which exists for any other business but on a much larger scale and with more dramatic consequences due its high profile and the many threat vectors that exist.

The Cyber Threat Landscape

Some of the targets for cyber criminals are likely to be the following :-

1.The Official Rio 2016 Website

Distributed denial of service (DDoS) attacks preventing access to website by fans.

The accessing of the website by hackers, altering the data such as falsifying the results and interfering with medal tables.

Defacement of the website by a hacktivist.

Spectators and visitors will no doubt access the website via Wi-Fi and vulnerability will exist if they inadvertently log in through a rogue Wi-Fi connection which could lead to the stealing of their personal data.

2.Event Tickets

Ticket fraud with the setting up of bogus websites taking fans money and issuing counterfeit tickets.

Website scamming offering last minute match day tickets for the big events with no ticket actually being produced.

3.The Venues

Technology will be pivotal in all aspects of the running of the 37 venues being used in Rio 2016. Entry to the venues, ticketing processing, management of lighting and associated infrastructure would all be impacted in the event of a cyber attack.

4. Competitors Data 

The event will involve a huge amount of data ranging from credit card data of spectators, athletes confidential information or the database of the organizers which is likely to be targeted by hackers. This could occur through phishing attacks in order to steal personal private information (PPI)and then lead to possible bank fraud of individuals. Brazil does have an established reputation for on-line banking fraud.

5.E-mail Transmission

E-mail scamming could be caused by bogus e-mails set up to obtain athletes and officials personal information that could be disseminated over the internet. The endless sending and exchanging of e-mails also presents an opportunity or spamming.

6.Media Coverage

World wide coverage will be provided to this event by television companies who will be reliant on technology and the service could be interrupted or even blacked out by a hacker wishing to cause transmission downtime. For example a video re-run of the 200 m final could be disrupted by a ransomware attack.

7. Computer Network 

The spreading of a malware attack within the internal computer network and third party providers could cause enormous interruption to the running of the numerous events taking place. The reliance on technology reaches far and wide ranging from the transportation network to close circuit TV surveillance systems.

8. Mobile Applications 

Fake mobile apps devised by developers to give the impression of the official Olympics app. Smartphones area also at risk if stolen and personal data is sourced.

9.Cyber Terrorism

Cyber terrorism could occur in a number of forms. A ransomware attack would limit or entirely restrict the use of computer systems affecting the running of Rio 2016.

There may be political motivation from countries that want to disrupt the Olympics. This could be to make a political stand on an issue or perhaps a country that failed to win an event or perhaps a competitor that was disqualified and the country that was represented takes retaliation.

The threat of remotely controlled drones by cyber terrorist entering an event causing disruption and delay to matches.

10.Social Media

Infiltration of social media websites by hackers of the tournament and personal accounts pose a threat to fans , players and officials privacy.

Cyber Risk Management Program

The International Olympic Committee will no doubt have in place a comprehensive cyber risk management program to manage the programs of events which is likely to be broken down into the following :-

  • Identification of cyber risk vectors
  • The mitigation of cyber risk within the tournament
  • The transfer of residual cyber risks that they are unwilling or unable to manage.

Cyber Insurance

Cyber Insurance can assist with the transfer of cyber risks associated with sporting events by providing the following insurance modules :-

  • Network Security Liability
  • Data Privacy Liability
  • Multimedia Liability
  • Network Business Interruption
  • Data Asset Protection
  • Cyber Extortion
  • Crisis Management

A cyber insurance policy also provides post breach vendor assistance helping with data breach notification , forensic investigation and public relations.

Rio 2016 is global event that is reliant on technology which does make it especially vulnerable to cyber security threats, it is therefore important that these are recognized and measures are put in place to mitigate the potentially severe consequences that could impact on the games.

Image Credit: rvlsoft / Shutterstock.com

EU-US Privacy Shield – En Garde !

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EU-US Privacy Shield

EU-US Privacy Shield will come into force on the 1st August and this now replaces the defunct Safe Harbour.

What has caused the delay?

Finally getting this over the line has been frustrating as it has met the resistance of the European Commission whose fault finding Article 29 Working Parties Opinion on this was delaying the final agreement.

This has now been given approval by the Article 31 Committee on 8th July and on 12th July the European Commission issued an “implementing decision” which ratifies that the Privacy Shield will be adopted.

Despite criticism from certain quarters during the negotiation phase this does now provide some certainty on how businesses can legally transfer personal data between the EU and US.

The Background

In February we covered the announcement of the  hotly awaited replacement to the Safe Harbour in our post

EU-US Privacy Shield – Is data safe again?

The main obligations imposed on firms handling Europeans personal data are as follows:-

  • Individual Notification

Businesses must inform individuals of their rights under the US-EU Privacy Shield and what rights they have including specific reference to how their particular data is processed

  • Opt Out

Individuals can object to the disclosure of their personal data to third parties or for specific purposes.

  • Responsibility for movement of personal data

This should be limited and made clear for what purpose this is going to be utilised. The level of protection of the data in this process must be no lesser to that set out under the Privacy Shield.

  • Security Measures

These must be in place commensurate with the type and sensitivity of the data and how this will be processed.

  • Access to Data

This must be possible and if amendments are required to the data then this must be carried out promptly.

  • ƒData Integrity

Data must be set out in accordance to its’ relevance and end use, this must be up to date and accurate in all respects.

  • Consequences of non adherence

Processes to be put in place to ensure that compliance is achieved and a system of redress with options for legal remedies.

A copy of the Framework Principles as issued by the US Department of Commerce is available at the link below

EU-US Privacy Shield Framework Principles

What will the impact of Brexit?

This is going to be one of the many issues that will need to be negotiated with the U.K. leaving the EU. The protection of personal data is a foremost consideration all around the world today and this geographical location is no exception.

Would the UK now need to negotiate a separate Privacy Shield with the US – will we therefore see a US-UK Privacy Shield?

How does this interact with the General Data Protection Regulations that come info force on 25th May 2017? The UK will need to implement similar data protection regulations when dealing with the EU and the personal data of individuals within these European States. Data from the EU may also circulate via the UK to the US which is a further dilemma that will need to be addressed.

Can Cyber Insurance Help?

This form of policy provides protection for loss of personal data for such scenarios as a result of a hacker attack , the inadvertent loss of data by an employee or the destruction of data by a malicious act. The post breach response vendors provided by insurers also provides a significant benefit to businesses.

Cyber Insurance can therefore play a role in mitigating the impact of a data loss irrespective of the changing legal landscape that is evolving.

The underlying message to the business environment is that they must have heighten awareness and be very much ” En Garde” as to the dynamic changes on how data is processed and protected and the pitfalls of non-compliance.

 

10 Reasons to buy Cyber Insurance

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cyber insurance

10 reasons to purchase Cyber Insurance – Here are some reasons why businesses should consider this form of insurance.

In arriving at the decision to purchase cyber insurance a business will need to carry out a full cyber risk management analysis detailing vulnerabilities and how the businesses wishes to manage their cyber exposures which may impact on its day to day trading activities.

Once this has been determined the outcome to purchase cyber insurance could be driven by the following factors :-

1.Balance Sheet Protection

Helping to help mitigate a catastrophic compromise of computer systems and network that may endanger the livelihood of a business.

2.Risk Transfer Mechanism

To cover cyber security risks that cannot be managed within the business or where the businesses chooses to insure these rather than to retain.

3.Management “Sleep Easy”

Due diligence assurance for the Board of Directors and members of staff that there is a “layer” of coverage outside of the cyber security measures that are already in place.

4. Contractual Requirements

Coverage may be required by clients being part of contractual obligations to trade with a business. Businesses entering into government contracts are required in some instances to purchase cyber insurance. This requirement is likely to increase within the business community.

5.The Regulatory Environment

The forthcoming General Data Protection Regulation will impose compulsory notification of all data breaches and regulatory scrutiny.

6. Own Experience of a Cyber Attack

A business who has already suffered from a cyber attack my require comfort going forward from the coverage provided by this specialist form of insurance.

7. Substitute for further Security Spend

Cyber insurance could be seen as a lower cost alternative rather than investing further in cyber security within the business.

8 Competitive Advantage

The purchase of this form of insurance should sit alongside Cyber Essentials and ISO 27001 accreditation and a sign to other businesses that cyber exposures are taken seriously to its clients.

9. Business Continuity

Help to get a business up and running again post breach to cover increased cost of working and loss of profits so that they maintain their trading position in their business sector.

10. Vendor Proposition

The vendor proposition included under a cyber insurance policy provides post breach legal services , forensic investigation and public relations consultancy.

Cyber insurance is an evolving form of insurance with policy coverage developing on a regular basis. The coverage provided by the insurance market does vary considerably, with over 30 insurers to choose from , it is important that you utilize the services of an insurance broker who possess the requisite knowledge and expertise to guide a business through the coverage options and has the influence within the market to negotiate bespoke policy wordings.

Euro 2016 – The Cyber Threat Landscape

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Euro 2016-

Euro 2016……whether you agree with the final England squad going to France for the 15th UEFA European Championships or not, we should all be in agreement that this major sporting event is inevitably going to be a target for cyber criminals.

Some Facts…

24 countries will be represented at Euro 2016 each with 23 players in the squad which totals 552 players in all

2.50 million fans are expected in the 10 stadiums

Overall spend is expected to be E1billion

The event is being broadcast to 230 countries worldwide with 150 million spectators expected to follow each match

650 employees and 6,500 volunteers

Information : Courtesy of Press Kit dated 2nd March 2016

Why Euro 2016?

Major sporting events grab the attention of the entire world but unfortunately this also attracts elements of the population who perceive this as an opportunity to be exploited  ….. the world of cyber crime.

The threat that cyber crime poses to an event such as this is similar to that which exists for any other business but on a much larger scale and with more dramatic consequences due its high profile and the many threat vectors that may exist.

The Cyber Threat Landscape

Some of the targets for cyber criminals are likely to be the following :-

1.The Official Euro 2016 Website

Distributed denial of service (DDoS) attacks preventing access to website by fans.

The accessing of the website by hackers and altering the data such as falsifying the results and tables and providing incorrect information to the public.

Defacement of the website by a hacktivist.

Fans will no doubt access the website via Wi-Fi and vulnerability will exist if they inadvertently log in through a rogue Wi-Fi connection which could lead to the stealing of their personal data.

2.Match Day Tickets

Ticket fraud with the setting up of bogus websites taking fans money and issuing counterfeit tickets.

Website scamming offering last minute match day tickets for the big games with no ticket actually being produced.

3.The Stadiums

Technology will be pivotal in all aspects of the running of the ten stadiums being used in the tournament. Stadium entry, ticketing processing, management of floodlights and associated infrastructure would all be impacted in the event of a cyber attack.

4. Tournament Data 

The event will involve a huge amount of data ranging from credit card data of fans, players confidential information or the database of the organizers which is likely to be targeted by hackers. This could occur through phishing attacks in order to steal personal private information (PPI)and then lead to possible bank fraud of individuals.

5.E-mail Transmission

E-mail scamming could be caused by bogus e-mails set up to obtain players and officials personal information that is disseminated over the internet. The numerous sending and exchanging of e-mails also presents an opportunity or spamming.

6.Media Coverage

World wide coverage will be provided to this event by television companies who will be reliant on technology and the service could be interrupted or even blacked out by a hacker wishing to cause transmission downtime.

7. Computer Network 

The spreading of a malware attack within the internal computer network and third party providers could cause enormous interruption to the running of the tournament. The reliance on technology reaches far and wide ranging from the transportation network to close circuit TV surveillance systems.

8. Mobile Applications 

Fake mobile apps devised by developers to give the impression of the official FIFA app. These have already been discovered by Avast Software’s Jan Piskacek with adware with viruses appearing on mobile phones.

Fake FIFA Apps on Google Play

9.Cyber Terrorism

Cyber terrorism could occur in a number of forms. A ransomware attack would limit or entirely restrict the use of computer systems affecting many aspects of the tournament.

There may be political motivation from countries that want to disrupt the tournament. This could be to make a political stand on an issue or perhaps a country that failed to reach the finals or a country that has controversially been knocked out of the competition.

The threat of remotely controlled drones by cyber terrorist entering a stadium causing disruption and delay to matches.

10.Social Media

Infiltration of social media websites by hackers of the tournament and personal accounts pose a threat to fans , players and officials privacy.

Cyber Risk Management Program

FIFA will no doubt have in place a comprehensive cyber risk management program to manage Euro 2016 which is likely to be broken down into the following :-

  • Identification of cyber risk vectors
  • The mitigation of cyber risk within the tournament
  • The transfer of residual cyber risks that they are unwilling or unable to manage.

Cyber Insurance

Cyber Insurance can assist with the transfer of cyber risks by the following insurance modules :-

  • Network Security Liability
  • Data Privacy Liability
  • Multimedia Liability
  • Network Business Interruption
  • Data Asset Protection
  • Cyber Extortion
  • Crisis Management

A cyber insurance policy also provides post breach vendor assistance helping with data breach notification , forensic investigation and public relations.

Lets hope England’s destiny will not again be determined by a penalty shoot out – if so the team will be need to be prepared, well practiced and above all have the right players taking the penalties …. this can be applied to the cyber security team that is in place to manage and mitigate cyber risks of any sporting event or to that fact any commercial enterprise.

Image Credit – Evan Lorne / Shutterstock