Cyber-liability Insurance: The Blame Game
The Business-Standard recently reported that RPG Group was the latest victim of a cyber-attack. Fraudsters hacked its current account and siphoned off almost half a million dollars.
Cyber-security experts in India blamed the banks and Reserve Bank of India (RBI) for not being proactive enough to stop the attack. In addition, bank accounts were being created using fake documents and there are no effective know-your-customer measures to check this. As a regulator, RBI holds the responsibility to check what is happening.
However, bankers have a different view. They say the world is ever-evolving and fraudsters and hackers continue to find new ways to commit frauds. Even additional security measures added onto the traditional username and password securities are proving fallible.
What’s more, banks say that hacking can’t happen unless the security features are compromised by the consumer. It is the consumers’ actions, either willingly or unwillingly that can compromise their online financial security, not anything the bank did.
What is significant about his hacking is the aftermath. The banks identified the consumers as the loophole. The consumers argued the bank was to blame. The result is a whirlwind of accusations that leaves a glaring reality- it is increasingly difficult for companies, banks and consumers to protect themselves against mounting cyber-attacks.
Companies in particular face a myriad of risks. A loss of financial, customer or employee data not only can have significant financial costs, but it can hurt their reputation in the community and relationships with clients and vendors.
All industries and companies face the risk of a privacy or network security breach. Privacy & network security insurance is a must for small and large firms to protect against this widespread exposures. PLRisk Advisors’ Privacy & Network Security coverage is the solution to helping your customers manage and protect against risk. Contact us today for more information. (855) 403-5982