| October is National Cybersecurity Awareness Month (NCSAM), created 15 years ago in the internet’s infancy to convince the public to take cybersecurity seriously. The public and the banking industry are painfully aware of how quickly cyberthreats have evolved in the years since.
This year the sponsors of NCSAM are taking aim at, among other topics, the importance of insuring data in the event of a (probably inevitable) breach.
Banks and state government networks alike hold a slew of personal data about their consumers and residents, like Social Security numbers, account information and credit card numbers. Atlanta’s connected municipal systems were crippled by a cyberattack earlier this year, costing the state an estimated $44.5 million in reparations.
After doing all they can to defend their data, banks and municipalities are turning to cyber insurance for another layer of protection. Thirty-eight percent of state chief information officers said in a recent survey that they had some type of cybersecurity. PwC estimates that annual gross written premiums for cyber insurance will jump from $2.5 billion this year to $7.5 billion by the end of the decade.
“If banks and large entities care about their customers – and keeping their customers – they should care about cybersecurity,” Russ Schrader, executive director of the National Cyber Security Alliance, told Banker & Tradesman. “A data breach can be devastating for a company and its customers.”
NCSAM is once again co-led this year by the National Cyber Security Alliance and the Department of Homeland Security. The month-long effort is meant to help Americans be safer and more secure online, both personally and professionally.
“NCSAM can help banks and organizations by providing guidance on how to protect their data and how to train their employees on protecting data,” Schrader said.
Schrader advises companies and banks to talk to an insurance broker for the details of available cyber insurance policies.
“Just like with car and home insurance, cyber insurance requires an application. It will explain what a response plan is, what kind of security you need. It will basically provide a checklist that’s like a free cyber audit, asking if and how the company is keeping data safe,” Schrader said.
By talking about the application and keeping options for insurance open, Schrader said banks and organizations can find out if they’re qualified for cyber insurance and decide what to do with the safety of their data.
NCSAM provides resources catered to anyone from the individual online user, to a connected organization, with tip sheets and guidelines. The theme of NCSAM this year is “Our Shared Responsibility.”
“If everyone does their part – implementing stronger security practices, raising community awareness, educating vulnerable audiences or training employees – our interconnected world will be safer, more resistant from attacks and more resilient if an attack occurs,” Schrader said.
In the end, no individual, business or government entity is solely responsible for securing the internet, Schrader added. “Everyone must play a role in protecting their cyberspace.”
In the spirit of NCSAM, bank executives and state entities need to take a closer look at their piece of cyberspace and identify the best ways to protect it, whether by increasing current safeguards or insuring against future breaches.
