Planet Money explores “The Price of a Hack”

Published On: January 11th, 2019Categories: Commercial Insurance, Cyber Insurance

What is the price of a hack? It is an important question that Dina Temple-Raston and Karen Duffin, hosts of NPR’s Planet Money, seek to find out. Though the discussion is focused around a hack with a US-based company, the situation is the same for Canadian businesses.

Hackers are an expensive headache for companies. But there might be a simple economic fix. ~ NPR

A big shift in how Canadian organizations manage data breaches occurred at the tail end of 2018. As of November 1st, 2018, Canadian businesses are mandated to publicly report data breaches to the Privacy Commissioner and any potentially impacted person or company. The report from Planet Money provides a good look into what it may be like for you if your company experienced a data breach.

The story of the podcast revolves around Mavis, a supervisor in a financial services organization. One day Mavis comes into work, opens her inbox, and sees an email from someone she knows. But the email content seems a little fishy. She emails back and asks the person if it is a legitimate email. Mavis received a response confirming that the email was legitimate, and Mavis decided to click the link… and that is where everything turned.

A few days later, Mavis opened her sent folder to see hundreds of sent emails that she did not send! And at that moment, Mavis realized her computer was hacked. As a supervisor, Mavis had access to social security numbers, banking information, bank statements, and even documents with wiring instructions attached. For a hacker, it was like finding a gold mine.

Mavis instantly felt panicked and ashamed for being the cause of her company spending so much money and time on her mistake.

CYBER RISK TIP: Create an environment where staff feel comfortable sharing with their Manager or IT Department when they think they MAY have clicked a bad link or made some other cyber error.

Next, Mavis’ boss, Wendy, received a call. It was a large client calling who asked Wendy, “Did you get hacked?” Wendy shook inside… imagine getting THAT call from a client with whom you have spent years building trust with.

What would you do next?

Please find out how Wendy confidently sprang into action with her secret weapon… Cyber Insurance.

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Written by:

Kyle Paterson
Kyle believes that insurance is a tool, when powerfully leveraged best ensures the vision of business leaders and families are realized. Kyle focuses on cyber risk transfer, group benefits, and corporate and individual life insurance solutions.

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