Data Breaches Increasing at a Record Pace According to a recent report from the Identity Theft Resource Center and CyberScout, 791 data breaches were reported during the first half of 2017 in the United States alone, marking a 29 percent jump from the same period in Data Breaches Increasing at a Record Pace 2016. The increasing rate of cyber breaches indicates that many companies A recent report highlights the increasing threat of data are still failing to take cyber security seriously. breaches and the sectors that are most vulnerable. Most Vulnerable Sectors Hollywood Hacked The report organized the data breaches into five sectors: banking, health care, Hollywood is especially vulnerable to cyber attacks, as government, education and business. At 54.7 percent, the business sector proven by a recent HBO hack. experienced the highest percentage of total breaches reported. Coming in second was the health care industry at 30.7 percent. Third was the education Accidental Employee Breaches on the Rise sector at 11.3 percent, with financial and government trailing at 5.8 and 5.6 The number of security breaches caused by employee percent respectively. error is almost as high as those caused by cyber criminals. The Real Numbers

2017 Cost of Data Breach Study The 791 breaches reported included at least 12 million records, which contained credit card numbers, medical files and Social Security numbers. Read about a few key takeaways from the 2017 Cost of However, the actual amount of records exposed could be much higher, since Data Breach Study. most industries aren’t required to share the type of information stolen and number of records compromised. In fact, 67 percent of all the breaches omitted such details, marking another record high.

Cost of a Breach Not only is the number of data breaches at a record high, but so is the average cost of a breach—up 5 percent from last year at $7.35 million. What’s more is that since data breaches are so common, only a small portion make the news, so many businesses fail to realize the threats they’re exposed to until they find themselves victimized.

Be proactive, and contact FBinsure to ensure you have the proper coverage to protect your company against losses from data breaches. Accidental Employee Breaches on the Rise When it comes to cyber security, ransomware Hollywood Hacked Again attacks have made the most news this year. Since the 2014 hacking at Sony Pictures, more recent events have shed light However, an almost equal threat comes from on Hollywood’s cyber security exposures. The latest involved the hacking of within an organization. Accidental breaches caused by employee error and third-party HBO’s social media accounts and the leak of an unreleased episode of “Game suppliers accounted for 30 percent of all of Thrones.” In separate incidents, hackers also stole episodes of the breaches during the first half of 2017, according network’s “Curb Your Enthusiasm,” “Insecure” and “Ballers.” to a new report from Beazley. Breaches that Although every type of business is vulnerable to cyber crime, Hollywood faces resulted from hacking and malware attacks led by only 2 percent, accounting for 32 percent of all unique challenges due to the amount of post-production freelancers hired for breaches. things like special effects and music. In the case of HBO, employees are required to have security-awareness training and two-factor identity The highest rates of employee security breaches authentication, but the company has no control over freelancers that handle were in the financial and health care sectors. sensitive information via their personal devices. That leaves cyber security in Almost one-third of financial data breaches control of their third-party vendors, which creates a significant risk. involved unintended disclosure—employees sending personal banking details to the wrong The costs incurred from of a Hollywood hack are significant. A movie loses an recipient. Unintended disclosure also accounted average of 19 percent of its box-office revenue if it is stolen and made for 42 percent of health care breaches. available online before it is released in theaters. Furthermore, if people can 2017 Cost of Data Breach Study watch movies and shows for free, they’re less likely to pay for a subscription to The following are key takeaways from the 2017 HBO or Netflix. Cost of Data Breach Study: Although the FBI advises against paying ransom to hackers, Hollywood can  Although the overall cost of a data breach lose millions of dollars if a popular show or movie is stolen, forcing them to decreased from $4 million to $3.62 million make a difficult decision. Paying the ransom may be less costly than losing globally since last year, the United States saw millions of dollars in revenue. However, there is no guarantee that paying the a 5 percent increase at $7.35 million. ransom will prevent the content from being leaked. When Larson Studios paid about $50,000 in bitcoin to prevent the leak of unreleased episodes of  Having an incident response team reduced “Orange Is the New Black,” the hacker took the bitcoin and leaked the stolen the cost of a data breach by nearly $1 million. episodes anyway.  Health care is the most costly industry for data breaches, costing organizations $380 per Although hackers stole an HBO executive’s emails, they have not breached the compromised record. company’s entire email system. It is still uncertain as to how its computer system was hacked. Cyber Insurance Volume Up 35 Percent Four people—current and former employees of a Mumbai-based company According to Fitch Ratings, the direct written that stores the series for an online streaming service—have been arrested for volume for cyber insurance in the property and the “Game of Thrones” leak. The compromised Facebook and Twitter accounts casualty industry increased to $1.35 billion, up 35 were unrelated and perpetrated by a group called OurMine. HBO rectified the percent. The agency credited the increase to situation quickly, removing the social media posts within an hour. frequent reports of computer hacks and high- profile ransomware attacks. Future cyber growth will be dependent upon more consistent policy terms and conditions, a better understanding of coverage and increased efforts to comply with cyber regulatory standards.

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