Building Cyber Defenses in Jewelry Operations
Thursday, September 13, 2018
Are you equipped to handle unprecedented cyberattacks? Here’s how to assess your readiness.
By Dave Zamsky, Vice President of Marketing and Business Intelligence, UPS Capital
Cybersecurity breaches and cybercrime create some of the most pervasive problems in our digital age, and no industry is immune, not even jewelry. The majority of jewelers are small businesses, which tend to be ill-prepared for cyberattacks.
Nearly two-thirds of cyberattacks are committed against small to mid-sized businesses, according to Property Casualty 3601, and incidents of cybercrime are on the rise. Such breaches increased by 40 percent in 2016 compared to the previous year, according to Bloomberg Technology2.
Recent headlines remind us that even the largest, most secure organizations can become victims.
The Equifax data breach prompted millions of Americans to think more seriously about cybersecurity and question how to protect their finances—jewelers and other small business owners did the same.
Still, 90 percent of small and mid-sized businesses do not use risk mitigation procedures for data protection and often lack a sophisticated IT infrastructure, The Guardian reported3.
The result: They are far likelier to be hacked.
A case for cyber insurance.
The financial consequences of cybercrime are increasing. According to The Guardian, just one attack can cost a small business between $84,000 and $148,000 in recovery expenses3.
It’s no wonder that 60 percent of small businesses go out of business within six months of a cyberattack, according to a 2017 Champlain College study4, “Internet Privacy in the Digital Age.”
That’s why UPS Capital® and Parcel Pro® recently introduced cyber liability insurance—a standalone policy that protects businesses from the financial implications of these attacks.
The coverage extends beyond third-party coverage or basic coverage for litigation, privacy claims and fines resulting from a cybersecurity breach. It also includes first-party coverage for the more complicated and expensive consequences, including paying a cyber extortionist, loss of business income, and breach notification mailings.
What can you do?
Whether jewelers realize it or not, a traditional business owner policy generally doesn’t offer the level of coverage needed in the event of an attack. Cyber coverage should include protection for such things as:
- Liability claims for invasion of privacy
- The costs of outsourcing critical business functions to insulate the company from further risk
- Credit monitoring
Pro-active tips for your cyber defense:
- Anticipate – Be aware of your vulnerabilities. Analyze your systems.
- Prevent – Develop a breach response plan that includes an internal stakeholder who can investigate and resolve the issue, with external breach response partners.
- Respond – Act with a sense of urgency.
Now is the time to implement a data breach response plan. To learn more about cyber liability insurance visit, upscapital.com or parcelpro.com.
- Propertycasualty360.com, 5/27/2015.http://www.propertycasualty360.com/2015/05/27/small-mid-sized-businesses-hit-by-62-of-all-cyber
- Bloomberg Technology, 1/17/2017.
- The Guardian (U.S. edition) 1/21/15. https://www.theguardian.com/business/2015/jan/21/cybersecurity-small-business-thwarting-hackers-obama-cameron
- Champlain College, Graduate Studies, 2017; “Internet Privacy in the Digital Age.” http://mastersinlaw.champlain.edu/internet-privacy-in-the-digital-age/
Cyber liability insurance is underwritten by an authorized insurance company and issued through licensed insurance producers affiliated with UPS Capital Insurance Agency, Inc., and other insurance agencies. UPS Capital Insurance Agency, Inc. and its licensed affiliates are wholly owned subsidiaries of UPS Capital Corporation. The insurance company, and UPS Capital Insurance Agency, Inc., including its licensed affiliates, reserve the right to change or cancel the program at any time. The cyber liability insurance program is governed by the terms, conditions, limitations and exclusions set forth in the applicable insurance policy. This does not in any way alter, supplement, or amend the terms, conditions, limitations or exclusions of the applicable insurance policy and is intended only as a brief summary of the program. Please consult the policy for the exact terms and conditions. No warranty, guarantee, or representation, either express or implied, is made as to the correctness or sufficiency of any information contained herein. Coverage is not available in all jurisdictions, including New York and Vermont.