Cyber-security is the backbone of the digital transformation across many industries, including insurance. However, the insurance industry has recently started attaching importance to developing cyber-security, in contrast with the rapid adoption of other digital technologies.

Just like many other industries, the insurance industry has increasingly been relying on digital activity after the pandemic. As a result, the threat posed by data breaches and cyber-attacks to the insurance industry has been growing.

In this article, we aim to inform you about the cyber risk for insurance companies, and the importance of prioritizing cyber security. Insurance companies must be alert and dynamic when it comes to following the latest security technology. Thus, cyber-threats can be easily noticed and quickly eliminated to prevent potential financial and intangible harm.

Why Is Cybersecurity Important In Insurance?

Insurance companies are a prevalent target of cyber-attacks because they hold considerable amounts of confidential data. While some other sectors also collect sensitive financial data, insurance companies, on top of that, generally possess a substantial amount of protected personal information. This situation makes the insurance industry prone to cyber-attacks.

Remember, nearly everyone has some form of insurance, so the scope of the industry is giant, and the data is sensitive. Potential vulnerabilities of your insurance company might burden you with financial liabilities. These unwanted liabilities include ransoms asked by cyber-criminals, lawsuits by clients, and fines from regulatory agencies. All these scary scenarios underscore the central importance of cyber security for insurance companies.

If you are aware of potential cyber security threats, then you are at the right point to take essential preventative measures such as frequent risk assessment and a solid security plan. In the long run, you will save your insurance company time and money, and more importantly, protect your reputation.

What Are The Cyber Risks In Insurance?

Insurance supervisors claim that cyber security risks trigger other types of risks including digitalization risks, cyber underwriting risks, and harming competitiveness. Therefore, understanding the methods of cybercriminals are important to take measures and stay secure for many elements of your business. Below are some common specific risks that you should be aware of.

Ransomware is a sort of malicious software that enables cyber criminals to prevent you from accessing your data until a certain amount is paid. It is not the best thing to directly pay the ransom instead of combatting the cybercriminals, but many insurance companies do it to fix the issue right away. That’s why it is a popular method among cybercriminals.

The risk of cloud exploits is also getting common as more insurance companies adopt cloud usage. Operating on the cloud expands your surface and makes you viable for data breaches and hijacking attacks. Protecting data from cloud exploits necessitates a powerful cybersecurity structure.

Social engineering is the risk that works with deception. It is usually hard to prevent via cybersecurity tools because individuals themselves give hackers access to the system through manipulation. Cybersecurity training is an effective tool to prevent this type of attack.

Sometimes, cybercriminals target your third-party vendors instead of your insurance company. They can penetrate your data through the system of your third-party provider. To prevent such attacks, you should be jointly keeping up with each other’s cybersecurity measures.

First-Party Vs. Third-Party Risks

The responsibility incurred by the insurance companies varies according to two main types of cyber risks: first-party risks and third-party risks. Knowing about them will help you figure out which precautions to take for yourself and your customers.

What is meant by first-party cyber risks is that they directly affect a business and its information system infrastructure. When the operations of a business are halted due to a ransomware attack, it is indeed first-party damage. In this case, your partnering reinsurance company can help you with fixing the situation such as paying the ransom, notifying customers, and compensating for the duration of halted business.

Third-party risks are about the cyber risks of other organizations that you are supposedly responsible for. When a customer claims that they are damaged because you could not secure their data because of a cybersecurity vulnerability, it is considered among third-party risks. You might have to deal with the third parties’ claims, especially if they engage in lawsuits.

Insurance companies should develop policies to address both first- and third-party cyber risks. Often it is tricky to differentiate third-party damages from first-party ones. For example, if you and your client have both been attacked, then it is not easy to identify how the data breach occurred at first. 

Wrap Up

The insurance industry is unique because insurance companies hold information about most of the world’s population.  Therefore, the cyber risks we mentioned above have significant consequences for insurers and policyholders.

If you are a part of the insurance industry, you should keep your eyes open to these detrimental risks. The key to prioritizing cybersecurity is to incorporate it into your infrastructure technology and let a group of highly skilled personnel operate it.

Data is the basis of every business. Either this or that way, companies have to work with data. In this sense, data accuracy is the crucial point for keeping data functional. 

Data accuracy affects all parts of your business. As it is directly connected to your decision-making process, it figures your forward-looking strategies.

For this reason, ensuring data accuracy is critical for the success of your business.

What is data accuracy?

Data accuracy, as the essential standard of data quality, refers to the consistency of data with reality. Because more conformity means more accuracy, so the accurate data must reflect the information you require.

This also means that the data is error-free and has a reliable and consistent source of information. Therefore, even though it may not be possible to get 100% truth, you should target to reach the optimum.

Accurate data is substantial for forecasting, planning, program budgeting, strategy development, and any business operation.

Data accuracy also includes totality, validity, and consistency. Your goals, projects, and projection for the future may fail if the data is inaccurate, incomplete, and unreliable. It can cause you to make wrong business decisions at critical junctures.

For instance, according to a study, 70% of data managers believe that inaccurate predictions are a hazard to their and the company’s reputation. And inaccurate predictions are usually rooted in inaccurate data.

Hence, data accuracy is the backbone of your business, and you must focus on it cautiously.

Accuracy Principle

The accuracy principle is the fourth principle of data processing in the General Data Protection Regulation (GDPR).

The GDPR principle is that the companies that collect and process the data must ensure their data is accurate. In addition, companies must admit and practice the policies to keep data subjects accurate.

As a part of the accuracy principle, individuals have the right to demand their right to rectification and erasure. Therefore, the companies must provide these necessary conditions to use their rights. This principle also sustains data security while keeping data up to date and trustworthy.

What does “accuracy” mean under EU Data Protection law?

EU Data Protection law sets conditions for data to be accurate and kept up to date. The accuracy here can be considered as not having incorrect, misleading information.

In the general sense, EU Data Protection law requires these points for the companies in terms of accuracy:

 The companies should take responsibility to ensure the accuracy of the personal data they collect from subjects.

• They must recognize individuals’ right to rectification and erasion.
• They also should keep the data accurate by erasing and rectifying inaccurate data as soon as possible when you notice an inaccuracy.
• They should periodically update the information to keep their data accurate.

The law makes a significant distinction between personal data and historical data. If personal information changes, it affects the data accuracy. Then you should update the data to keep it accurate, but historical data may embrace the past and current. So data may be inaccurate, but it may be accurate for the historical data framework.

Does personal data always have to be up-to-date?

The answer to this question is a yes in general terms. The companies must ensure that the personal data is actual and accurate. Yet, it depends on the data’s function and what purpose it is used.

If you use the information for activities requiring accuracy, then personal data must be up to date. Otherwise, the data will be inaccurate and, thus, misleading.

For instance, personal data, including address information, must be valid if your company aims to reach a specific person physically. So, any changes in address information must be periodically challenged and updated. Besides, it provides data security in terms of accuracy.

Up-to-date data is a must for you in that case.

On the other hand, there are cases in that you do not have to update your data constantly. For example, if you do not need the current information of your data subjects, it is not necessary to check the currency of your data. 

If you keep personal data just for research reasons like statistics and so on, then you only need personal data on a broad base, and you do not have to hold the data up to date.

To sum up

Data accuracy is vital for your business’s decision-making processes and prediction strategies.

While keeping data accurate, you should provide the conditions to correct information and enable individuals to use their rights of rectification and erasure. The accuracy principle, as is required by GDPR, is the base of your functional, secure and valuable data, which does not mislead you and cause harm for your company.

In recent years, outsourcing has become one of the most discussed subjects in business circles. With the rise of digitalization in business, physical presence in the workplace is becoming less necessary. In addition, as the old school office spaces are losing their cultural relevance, companies realize they don’t need to compete with other businesses to hire local talents.

An estimated 300.000 positions are outsourced every year from the U.S alone, and 59% of businesses use outsourcing to reduce their expenses. With numbers as high as that, it is no wonder that outsourcing has a significant impact on the global economy. 

Why Do Companies Outsource Talent?

The answer to this question may vary from company to company, but one of the top reasons for the popularity of outsourcing is its cost-efficiency. 

Having an in-house team can be much more costly than hiring offshore talent. Hourly rates being more affordable offshore is a part of the equation; however, that’s not the only issue. An in-house team will need extra office space and equipment that you will be responsible for purchasing and maintaining. Not to mention that the hiring process for these employees can be long and arduous. 

Another main reason for outsourcing is the global lack of talent in certain professions, such as software development, while the need is constantly increasing due to digital transformation. For example, as many as 39% of employers have reported a shortage of talent in the fields of system developers and system administrators. 

So, companies handle this challenge by outsourcing software development as a reliable solution for getting the job done in a stress-free and time-saving way.   

The Impact of Outsourcing on The Economy

Technology, including digital services, software, and software-based services, is leading the economy globally. Accordingly, the trend of outsourcing tech talents is changing the game, requiring companies to adapt to the new economic environment. 

In earlier decades, technology became a part of the business world with the need for a website and digital presence. However, digital transformation rules how we do business now, and the demand for experts in tech is drastically increasing. 

Companies are outsourcing talents to achieve their digital transformation goals. To state more clearly, by partnering with these providers, companies maintain cyber security, build apps, and go digital and agile without a considerable investment. There is no doubt that these services are mandatory in today’s business world and require quite a lot of attention to get the maximum benefit from them.

With a handy outsourcing strategy, the companies save their budget on tech and create big waves in the global economy. Even though unemployment seems to be the most significant unintended result of outsourcing in the economy, we can also interpret this situation as a shift in employment models. 

The professionals with experience and talent don’t want to limit their potential within a company. Instead, they want to expand globally and join the global economy. As a result, the cost of acquiring a good service may increase. However, it’s still more budget-friendly than hiring teams in-house. Because companies pay an hourly or a project-based price, they spend money on tech services only as long as they need them. 

Main players in the outsourcing

Outsourcing benefits two main groups. The first group is smaller countries and countries with developing economies. While they have a large pool of talented workers, their local economy might not have the infrastructure or the resources to acquire their services. 

As a result, qualified workers in these countries can sell their outsourced services for more money than their local economies would allow. This results in the growing impact of these countries on the global economy. The physical boundaries in employment are disappearing, and professionals in developing countries are increasing their chances of getting satisfaction in their careers. 

The second group is enterprise-level companies with talented teams offering world-class service. These providers act as a limb for their clients to contribute to their tech needs. Therefore, companies that get their support can access all devices, tools, and talents these providers offer.  

Conclusion 

The economy has a mind of its own, and few can predict the exact impact of outsourcing on it in the long run. So the best you can do is analyze the current data and have an educated guess on what might happen. 

Like any other business practice, outsourcing is a complicated subject with its own set of pros and cons. We will have a better grasp of its effects in the near future. But until then, it remains a reliable source of help for companies who can use an extra hand.

The telecom industry is the target of cybercriminals as it stores a large amount of company data in digital space to ensure the flow of information. All digital communication, from e-mail and messaging to phone and video calls, takes place thanks to telecommunication technologies.

This advanced industry manages many networks and sensitive data to meet market needs. For companies providing services in the field of telecom, protecting and managing user data is as important as the service they provide.

Providing Cyber ​​Security in the Field of Telecom

Ensuring cyber security in the telecom field is as challenging as it is important. The most important reason for this is that telecom companies with a large number of users continuously store new data streams.

For this reason, the telecom industry needs to act proactively and take cyber security measures before a threat occurs.

So, how is telecom in the fight against cybercrime? According to a 2018 report by EfficientIP, a network security and automation company, the telecom industry is struggling with cybercrime.

• 43% of telecommunications organizations were attacked by DNS-based malware.
• These companies took an average of 18 hours to respond to the cyberattack, while 81% took three days or longer to apply a security patch.

These statistics confirm that the telecom industry needs to improve itself and take precautions in the field of cyber security.

First of all, you can take advantage of our data security consultancy services to prevent data breaches in accordance with GDPR conditions.

You may also be interested in this article: Why Do You Need Data Security Services to Protect Your Company?

What Are the Current Vulnerabilities in Telecom?

According to the General Data Protection Regulation (GDPR), your telecommunications company has to take many measures to protect data against cybercrime.

Understanding existing vulnerabilities prepares you for threats.

SS7 and Diameter Signaling Threats

The SS7 (No. 7 Signaling System) or Diameter protocols used by many core telecommunications services are flawed. Newer protocols such as SIP (Session Initiation Protocol) are vulnerable to threats without proper controls. Hackers, who can easily obtain 2FA authentication codes, can access users’ accounts.

DNS Attacks

DNS (Domain Name Security) attacks are a major problem for telecommunications companies. The cost of such attacks is increasing every year. He explained to the Global DNS Threat Report that in 2020, about 79% of telecom organizations were exposed to DNS attacks. The average cost of these attacks is $924,000.

DDoS attack

DDoS attacks interrupt the services of the Internet-connected host temporarily or indefinitely. We can say that DDoS attacks are one of the most common types of cybercrime. The 2016 Data Breach Investigations Report reveals that the telecom industry has suffered more DDoS attacks than any other industry.

These attacks can result in data breaches and identity theft, as well as increasing traffic costs, disrupting service availability, compromising internet access by targeting ISPs.

What are the steps to take when you are attacked?

Let’s say as a telecom company, you are faced with a data breach and identity theft. You need to act quickly to secure your systems and fix any security vulnerabilities that could lead to a breach.

These are the first steps you can take:

• Establish a breach response team to prevent additional data loss.
• Change access to credentials, passwords, and breach-related codes.
• Contact people who discovered the violation.
• Identify a data forensics team and legal counsel.
• Disable all affected equipment immediately.
• Use clean machines instead of affected machines.

Unfortunately, all this is not enough. In addition to following and directing the legal processes, it is a necessity to both prevent other possible data breaches and make a media plan that will protect your company’s reputation.

Cyber ​​Security in Telecom: Challenges and Solutions

As a telecom company, there are some challenges you will face in dealing with cyber attacks. Chief among these: lack of knowledge, incorrect use of technology, and an incompetent team.

So how can you deal with these challenges?

The ways of providing cyber security in the telecom sector can be summarized under these 3 main headings:

Making difference

Awareness is the first step of telecom companies in the fight against cybercrime. The lack of technical knowledge of company employees and managers is one of the biggest challenges. Failure to take the necessary technical precautions regarding password and data sharing often leads to data breaches.

Creating cybersecurity awareness among customers and employees reduces risks to a certain extent. You should inform personnel about how they can be targeted and what the protocol is in the event of an attack. By raising awareness, you can protect your budget and your reputation.

Using the Right Technology

All your information technology infrastructure, from servers to mobile phones, should be protected with appropriate security solutions. First of all, adequate security measures reduce the risk of infiltration. This also allows you to quickly detect any attack.

The longer hackers have access to your system and information, the more damage they can do to your company. The cost of a major security breach exceeds your budget for data protection in the short and long term. For example, if customers are convinced that their data is not safe at your company, they may choose competing companies.

Building the Right Team

Cybersecurity requires the right team as well as the right technology. Having a competent and reliable team in the field is very important in terms of cyber security and data protection.

Your team should take on responsibilities such as following best practices, arranging training for staff, arranging the technical side of things. The cybercrime team is just as indispensable as your marketing team or finance department.

To effectively combat cybercrime, telecommunications companies need to raise awareness, organize employee training, and turn to appropriate technological solutions. But the first step is to set up the right work team.

At this point, Omreon, an experienced and competent institution in its field, is with you while taking the steps you need.

Incident Response Plan for Companies

According to a 2018 IBM report, 77% of organizations do not have an effective incident response plan that they put in place when a security breach occurs. Incident response plans, which every company needs, allow you to keep your company’s data security, reputation and budget under control.

What is Incident Response (IR)?

Incident response (IR) encompasses a set of procedures, tools, and resources that companies use to recognize, respond to, and recover data after cybersecurity attacks.

Let’s say your company detects a data breach. If you go directly to damage control, this can cause disruption and even chaos in the long run. An incident response plan (IRP) prevents chaos.

Incident response plans are not vague and tentative ideas of what your company will do in the event of an attack. Rather, it contains step-by-step instructions on how the company should continue to work and operate, and who to contact. Thus, your company can take strategic steps against a data breach.

Types of Security Incidents You May Encounter

Companies often face the following 4 common security incidents. Knowing about these possibilities guides you in creating an incident response plan.

DDos Attack

A DDoS attack is when a hacker bombards incoming traffic to any application with high-volume requests. This attack can cause unseen results and slow speed in internet and application operation.

Malware and Ransomware

Malware is software created to damage, disrupt, or gain illegal access to a client, computer, server, or computer network. Ransomware, on the other hand, is a specific type of malware. It demands ransom, threatening to delete or keep files that are accessed without permission.

Identity Theft

Identity theft is a form of fraud, usually via email, to obtain the information of individuals and companies. This security incident is a method that is frequently encountered in work environments and puts companies at risk in terms of GDPR.

Internal Threats

Internal threats are intentional or unintentional attacks by highly authorized individuals who have access to a company’s assets or data. The fact that employees and managers who have access to data in the remote working system do not have sufficient knowledge about cyber security increases this risk.

For more information, check out the top cyberthreats in 2021.

Why Do Companies Need an Incident Response Plan?

GDPR (General Data Protection Regulation) is a regulation created for the protection of personal data. This regulation also obliges to establish a procedure for how to manage the incident when there is a violation. For this reason, incident response plans are also legally required.

A cyberattack or data breach can wreak havoc on customers, partners, and your company. For example, when personal data of customers and information about your company are captured, it is used for malicious purposes. On the other hand, such cyber threats also mean loss of time, money and reputation for your company.

An incident response plan will help you minimize these losses. With this plan, you can recover your data as soon as possible. At the same time, having a good incident response plan is an important criterion in your relationship of trust with investors, business partners, customers and employees.

In the advanced technology age we live in, many companies from different sectors may encounter data breaches or cybercrime. That’s why the best way to protect your company is to develop a well thought out, repeatable and consistent incident response plan.

Contact us to prepare your incident response plan together with Omreon’s expert team.

What Should You Include in Your Incident Response Plan?

Incident response plans vary according to the structure of the company, the technologies it uses and the data it stores.

However, there are steps that must be taken when devising a plan to protect companies.

Tip: First, summarize the plan’s goals, scope, and guiding principles. Emphasizing the purpose guides the rest of the plan.

Identify Violation and Identify First Steps.

In this section, ask yourself the following questions and incorporate the answers into the plan:

• Under what conditions should you activate the plan?
• Who will have the authority to apply for and initiate the plan?
• Where and how does the incident response team meet?
• Who should be contacted in the first step?

Create a Requirement List.

Incident response teams must decide in advance what items and information they will need in the event of a breach. For example, spare cables, chargers, notepad etc. Keep tools close by.

Identify Roles and Responsibilities.

Incident response team should be identified. You should also clarify what roles and responsibilities these members have. Note also the backup contacts to be reached if any of these members is unavailable.

Detection and Analysis: Build Scenarios.

All your documentation on how a security breach was identified and detected is in this section. This section usually consists of scenarios. You can seek professional help from people who have experienced similar attacks before and produce practical solutions.

Explain Technical Procedures.

Technical procedures list methods of containment. It also outlines procedures for recovering affected systems and eliminating the threat.

Determine Communication Method and Tool.

Decide in advance what methods and tools you will use when communicating with parties such as cybersecurity consultants, law enforcement, and customers.

Increase Security by Evaluating the Incident.

After the violation is resolved, it is time for the evaluation process. It is necessary to take steps regarding how the violation took place and how to prevent similar violations in the future. Evaluate the event and update your plan to include the necessary changes.

In the event of a cybercrime or data breach, you should predetermine the steps you need to take. Only when you create a regular and systematic incident response plan can you ensure data security.