Why Are There Cyber Attacks On Insurance Companies?
From being vulnerable technologically to having difficulties with compliance, these are three answers to the question, "What are some important reasons insurance companies are such a frequent target of cyber attacks?"
- Aging Technology
- Containing Vast Amounts of Sensitive Data
- Challenging Complex Systems for Security and Compliance
Aging Technology
Insurance is one of the ultimate "small c" conservative industries. Hedging against risk is not exciting, and it's also the kind of industry that attracts those who care about stability and underwriting.
Technology, unfortunately, is not like that. Things are moving forward constantly. Today's state-of-the-art system is tomorrow's attack vector. While moving forward recklessly often exposes businesses to operational risk, aging technology predictably exposes businesses to security risk and depreciation.
Trevor Ewen
COO, QBench
Containing Vast Amounts of Sensitive Data
Insurance companies contain enormous amounts of data about their customers, concerning financial reports, social security numbers, and personal and medical information. In fact, accessing Personal Identifiable Information from insurance companies is 100 times more valuable and useful than information from a credit card.
Hackers can misuse the data from insurance companies to purchase and resell medical equipment or prescription drugs.
Marco Genaro Palma
Co-founder, TechNews180
Challenging Complex Systems for Security and Compliance
One reason insurance companies are frequent targets of cyberattacks is that they store vast amounts of sensitive and valuable information, including personal identifiable information (PII), health records, and financial data. This information can be valuable to cybercriminals who can use it for identity theft, fraud, or ransomware attacks.
Moreover, insurance companies often have complex and interconnected IT systems that can be vulnerable to cyberattacks. These systems may include various applications, databases, and networks that interact with each other, making it difficult to identify and address potential security vulnerabilities.
Another factor is that the insurance industry is heavily regulated and must comply with various data privacy and security regulations. This can make it challenging for insurers to implement security measures and remain compliant simultaneously, especially when new technologies and evolving cyber threats continuously disrupt the landscape.
Harsh Verma
SEO Head, Codedesign
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