Third-party attack vectors pose a significant threat to insurance companies, accounting for nearly 29% of breaches in the sector. When sharing sensitive details with your insurance provider, you reasonably expect them to keep that information secure. However, these companies face a growing challenge as cybercriminals target their extensive network of external partners and cloud services. The rising complexity of these attacks underscores the need to understand the stakes involved.
Insurance companies rely heavily on third-party vendors for various services, including data management and processing. This reliance creates vulnerabilities that cybercriminals can exploit. According to data from SecurityScorecard, 98% of organisations are affiliated with a third party that has experienced a breach. This highlights the importance of robust third-party risk management strategies to prevent and recover from these security breaches.
The recent data breach at Landmark Admin, a third-party administrator for several large insurance firms, exemplifies this risk. The breach exposed the sensitive information of over 800,000 people, including names, Social Security numbers, and tax identification numbers. In order to mitigate these risks, insurance companies must implement effective third-party risk management plans.
According to UK Information Commissioner John Edwards, “The biggest cyber risk businesses face is not from hackers outside of their company, but from complacency within their company.” This underscores the need for proactive measures, including regular monitoring for suspicious activity, updating software, and providing training to staff.
In conclusion, the threat of third-party attack vectors to insurance companies is a pressing concern. By understanding the risks and implementing appropriate measures, these companies can better protect sensitive customer information and prevent costly data breaches.
Three critical vulnerabilities are keeping insurance company executives awake at night: third-party cyber breaches, social engineering attacks, and the ever-growing threat of ransomware. These threats aren’t going away anytime soon, and they’re only getting more sophisticated.
Your third-party vendors could be your biggest weakness. With over 98% of organisations affiliated with a third party that has experienced a breach, you’re facing an expanded attack surface that cybercriminals love to exploit. Specifically, in the insurance sector, 59% of breaches among the top 150 insurance companies involved third-party attack vectors, exposing critical vulnerabilities in the sector’s supply chain. Insurance companies handling vast amounts of sensitive customer data are particularly attractive targets for these attacks. As advanced machine learning techniques become more accessible, they allow attackers to amplify their targeting strategies.
When these vendors experience breaches, your customer data gets exposed, leading to hefty regulatory penalties and damaged trust. What’s worse, you often can’t see what’s happening in your vendors’ cloud services, making it tough to spot potential security issues.
According to Andrew Correll, senior director of cyber insurability, “Cyber risks don’t stop at the first layer of defence — they extend deep into the supply chain, where vulnerabilities are harder to detect and even harder to mitigate. Addressing these risks requires a shift in how the industry prioritises third-party security”.
Social engineering attacks have become particularly sneaky. Cybercriminals are using AI to impersonate trusted individuals, and whaling attacks targeting executives have doubled. These criminals are getting creative, using phone calls and emails to trick your employees into revealing sensitive information.
Without proper training, your team might fall for these increasingly convincing scams. As highlighted in a report by AmTrust Insurance, social engineering scams can have devastating consequences, with attackers often exploiting vulnerabilities of human nature to subvert security measures.
Ransomware has emerged as a nightmare you can’t ignore, with attacks skyrocketing by over 350%. These criminals are doing their homework – they’re even checking your cyber insurance policies to figure out how much ransom to demand. Even if you pay up, there’s no guarantee you’ll get all your data back.
You’ll need a solid game plan to protect yourself. This means implementing robust third-party risk management strategies, continuously monitoring vendor risks, and ensuring everyone follows regulations.
