Companies must remain vigilant about how their business would be affected if they were impacted by a cyber incident.
This list of loss scenarios from external Cyber threats explains the potential impact on a client’s business and describes how Chubb’s Incident Response Platform helped contain the Cyber threat:
*All currencies indicated are in USD
A law firm’s network was hacked.
Sensitive client information was potentially at risk. This included a public company’s acquisition target, another public company’s prospective patent technology, the draft prospectus of a venture capital client, and a number of class-action lists containing plaintiff s’ personally identifiable information.
The firm then received a call requesting $18,400 to not sell the information on the black market.
As a Chubb cyber insured, the law firm initiated contact with Chubb’s Incident Response Hotline. Within 1-hour an Incident Response Manager was assigned to the event and within 5-hours IT forensic investigators and legal counsel commenced work addressing the incident.
mismanagement of personal and/or corporate confidential information.
liability arising out of the failure to effectively protect insured’s network from malware, hacking, denial of service attacks or unauthorised use or access:
costs associated with addressing extortion threats to release information or malicious code unless paid extortion monies:
Total cost: $332,700
By telephoning the Chubb Incident Response Hotline, the Incident Manager informed the client that the Cyber ransom should not be paid. Many clients may not be aware of this. We have seen cases where the ransom has been paid and the information has still been published online. There is a risk that if the ransom is not paid, the information will be released, but the Incident Response Manager will make sure the correct experts such as forensic investigators and legal counsel experienced in cyber extortion were appointed to manage the situation.
Hackers gained unauthorised access to account information located on a school district’s network due to an unknown vulnerability.
The account information included names, email addresses, national ID numbers, and financial account information of 20,000 past and present teachers and students. After multiple students and teachers reported suspicious activity on their email, IT discovers that an unauthorised user was in the system.
The school district telephoned the Chubb Incident Response Hotline and an Incident Response Manager was assigned.
mismanagement of personal and/or corporate confidential information:
failure to effectively protect insured’s network from malware, hacking, denial of service attacks or unauthorised use or access.
Total cost: $311,800
This scenario highlights the importance of storing sensitive information under the necessary protections. Up to date firewalls, intrusion detection software, and encryption of databases are just a few ways to responsibly maintain the privacy of employee and customer information.
This example also highlights the many ways Chubb’s policy may respond to cyber events. The Incident Response Manager provides assistance in organising the many different services required to respond to this one incident, from forensic investigation costs, defence costs and public relations expenses and more.
The data centre which hosted an online retail company’s website became the target of a distributed denial of service attack.
The attack, which utilized hacked internet of things devices, flooded the data centre’s network with so much traffic that their network failed. This made the online retail company’s website inaccessible for a period of six hours before backup systems were able to restore 100% functionality. After telephoning the Chubb Incident Response Hotline, an Incident Response Manager was assigned.
Total cost: $166,900
As the use of internet of things devices increases, Distributed Denial of Service (DDoS) attacks are becoming more common and more powerful.
To minimise the impact of a scenario like this, it is important to build a business continuity plan that ensures critical business applications, systems, and activities do not rely on only one single IT provider.
Chubb’s incident response managers and trusted Cyber vendors are experienced in dealing with DDoS attacks and will assist in getting your business back on track as soon as possible.
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Disclaimer - All contents of this article are intended for general information/guidance purposes only and not intended to be an offer or solicitation of insurance products or personal advice or a recommendation to any individual or business of any product or service. This article should not be relied on for legal advice or policy coverage and cannot be viewed as a substitute to obtaining proper legal or other professional advice, or for reading the policy documents. You should read the policy documents to determine whether any of the insurance product(s) discussed are right for you or your business, noting different limits, exclusions, terms and conditions apply in each country or territory, and not all cover is available in all countries or territories.
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