Cybersecurity litigation is currently at a crossroads. Courts have struggled in these cases, coming out in wildly inconsistent ways about whether a data breach causes harm. Although the litigation landscape is uncertain, there are some near certainties about cybersecurity generally: There will be many data breaches, and they will be terrible and costly. We thus have seen the rise of cybersecurity insurance to address this emergent and troublesome risk vector.
I am delighted to be interviewing Kimberly Horn, who is the Global Focus Group Leader for Cyber Claims at Beazley. Kim has significant experience in data privacy and cyber security matters, including guiding insureds through immediate and comprehensive responses to data breaches and network intrusions. She also has extensive experience managing class action litigation, regulatory investigations, and PCI negotiations arising out of privacy breaches.
Every year, we hear about how climate change is worsening. It seems the same story is happening with data security. Last year was the worst year in recorded data breach history. More than 5,200 breaches were reported in 2017, with more than 7.8 billion records compromised. By comparison, there are 7.6 billion people on Earth, so 2017 saw the number of records compromised surpass the total world population. Previously, 2016 was the record-holder with 6.3 billion records compromised. Are there any records left that haven’t been compromised?
Major breaches and security incidents included the enormous Equifax breach of 145 million records, the Uber breach, and the NSA leaked tools, which spawned WannaCry and other niceties. Click here for a collection of summaries of some of the more notable breaches of 2017.
Recently, HBO suffered a massive data breach. The hackers stole unreleased episodes of Game of Thrones and have been leaking them before they are broadcast. Episodes of other shows were also stolen. The hackers grabbed 1.5 terabytes of data including sensitive internal documents.
Harm has become the key issue in data breach cases. During the past 20 years, there have been hundreds of lawsuits over data breaches. In many cases, the plaintiffs have evidence to establish that reasonable care wasn’t used to protect their data. But the cases have often been dismissed because courts conclude that the plaintiffs have not suffered harm as a result of the breach. Some courts are beginning to recognize harm, leading to significant inconsistency and uncertainty in this body of law.
I am pleased to announce the launch of our new training program, Social Engineering: Spies and Sabotage. This course is a short module (~7 minutes long) that provides a general introduction to social engineering.
After discussing several types of social engineering (phishing, baiting, pretexting, and tailgaiting), the course provides advice for avoiding these tricks and scams. Key points are applied and reinforced with 4 scenario quiz questions.