The Problem with Cyber Liability & Data Breach: Wouldn’t be nice to go back to the good old days where all of your firm’s information was within the four walls of your office or warehouse.  You could protect it from the outside world with locks, keys, and guard dogs.  Those days are gone.  So are the days that you can look to your Business Owners coverage and Professional Liability coverage to protect you from today’s exposures to theft and extortion.  ...

How Does a Data Breach or Cyber Attack happen? Many data breaches are not very high tech:  1.    With the use of tablets, laptops, smart phones, and thumb/flash drives by much organization, simply losing or having these devices stolen can open up your entire treasure trove of protected data.  Also being careless about where devices are used, by as simple as someone watching what you are doing to, transmitting highly protected data over an unsecure wireless network can...

What can be done about Data Breach or a Cyber Attach? Prevention is always the best medicine: 1.    Training employees on the proper methods for handling the devices, passwords and how to use the internet and cloud. 2.    Keeping current with operating systems and application software updates 3.    Having up-to-date antivirus and data breach software installed system wide. 4.    Practicing good computer habits, ie changing password...

Law firms that work with Health Insurance issues and clients should be very concerned about protecting the confidential information as prescribed by HIPPA and their legal clients.  If a Data Breach should happen with confidential Health Insurance Information compromised, in addition to 3rd party damages, you may well have 1st party responsibilities under HIPAA.  Your Lawyers Malpractice Insurance policy may cover the 3rd party damages, but likely will not cover any 1st party obligation...

What if your Law Firm was breached as Mossack Fonseca was?  You do not have to being secretly helping the rich and famous in hiding money to have your firm not only embarrassed, but subject to large 3rd and 1st party.  All you need is one disgruntled employee with opportunity and access to be able to disclose your firm’s client’s confidential information.  In the case of Mossack Fonseca an anonymous source contacted a news service and over a period of months leaked 11....

Much has been made about the April 12 US Court of Appeals decision in Travelers vs Portal Healthcare Solutions where the court found that the Travelers Commercial General Liability policy (CGL) did not exclude coverage for data breach.   Portal Healthcare had argued that it was required a defense by Travelers over the data breach suit of New York Hospital patients where the firm was hired to protect Hospital’s data. The ruling only covered defense costs and was very specific to ...

It has been reported that the law firm Mossack Fornseca filed a complaint against one of its employees.  That employee was arrested in Switzerland on data theft charges.  Computer equipment was also seized by authorities.  At this point it is not clear if this arrest and the leak of the Panama papers is linked.  No matter how well a law firm protects its self from intrusions of hackers from the outside.  The greatest threat remains employees in the firm.  They hav...

As businesses spend billions of dollars a year trying to protect their data from hacking that’s costing trillions, they face another threat closer to home: data theft by their own employees. That’s one of the findings in a survey published by management consultant Accenture PLC and HFS Research.  Of 208 organizations surveyed, 69 percent “experienced an attempted or realized data theft or corruption by corporate insiders” over the past 12 months, the survey found co...

High on the list of things that send chills down the spine of an attorney is getting an e-mail from the disciplinary committee or state bar association alleging a disciplinary complaint.  Playing on those fears is the hope of the hacker that the attorney will open the attachment with the e-mail. Reported spoofed/bogus e-mails  are appearing and look like they originate from the state bar association with a subject line stating that an ethics complaint has been filed against the attorn...

Identity theft continues to rise.  Researchers say personal details, often found on social media, are being used for taking out things like loans, credit cards or phone contracts in other peoples names.   It can leave victims with big bills, or a bad credit rating (the points-based system lenders use to decide if you can borrow their cash).  The advice isnt much different from what you do online, but just think first before you post and make sure your privacy settings are secure...

Travelers Insurance has developed the following “Pressure Test” for your Cyber Risk.  In addition to the test questions, it also provides many helpful hints for managing the Cyber Risk.  Take the test.  Either click on or cut and paste the following link into your browser to see where your firm stands: https://www.travelers.com/quiz/cyber-security/cyber-risk-pressure If you want help with your Cyber Insurance needs, please contact L Squared Insurance Agency.  We...

Determining how much Cyber Liability Insurance coverage you need can be difficult.  The following Cyber Data Breach Calculator Link asks you to input your firms risk factors.  Once the calculator has this information, it will give you a recommended dollar amount as to your firms exposure in dollars. http://idt911.com/expensecalc/start.aspx L Squared Insurance Agency can help you with providing the appropriate cyber liability insurance coverages and limits.  

Travelers Insurance wrote the general Liability insurance policy (CGL) and Chubb wrote the Cyber coverage for PF Chang.  Chang had a data breach where 60,000 credit card numbers were stolen.  It promptly filed claims with Travelers & Chubb for coverage. Law firms that argue that their (CGL) will cover a Cyber breach should look at PF Chang v Federal.  Travelers obtained a declaratory action to extricate itself from this claim, so there was no coverage under the Travelers&rsqu...

According the link to the attached Wall Street Journal Article, ransomware attacks have quadrupled this year from a year ago.  The FBI has stated that the attacks cost victims over $209 Million in the 1st 3 months of this year.  Average cost of the attack is around $10,000. http://www.wsj.com/articles/in-the-bitcoin-era-ransomware-attacks-surge-1471616632 Bitcoins are now the preferred payment method for most ransomware infections as it allows the criminal to remain hidden when coll...

Whether it is office supplies, time theft, privileged information or money, employee theft can create a significant cost for firms.  According to the U.S. Chamber of Commerce approximately 75% of all employees steal from work in some way, and about 30% of all corporate bankruptcies are a direct result of employee theft.   The greatest threat to firms is from the inside. The following steps help lessen employee theft and its impacts on the organization:  1.  &nb...

Since it appears that spam season is getting back into full gear.  Here is another message that could drain your bank accounts should you decide to get involved.  This proposes to aid in committing a number of crimes if it were true, which will make it doubling hard to report the scam to the authorities. Before I introduce myself, I wish to inform you that this letter is a very important one and I urge you to treat it serious. This letter must come to you as a big surprise, but I be...

The World Anti-Doping Agency (Wada) has condemned Russian hackers for leaking confidential medical files of star US Olympic athletes.   Athletes affected include tennis players Venus and Serena Williams and teenage gymnast Simone Biles.  In the leak it was revealed that Simon Biles has been taking medicine for Attention Deficit Hyperactivity Disorder.  The medicine taken is all within the rules of Olympic guidelines, but it is confidential information that she would not dis...

Most small-business owners (78 percent) still don’t have a cyberattack response plan, even though more than half (54 percent) were victim to at least one type of cyberattack. About 60 percent of those who did experience a cyberattack said it took longer than a month to recover. By contrast, of those who have not encountered a cyberattack, more than half (57 percent) think their company could recover within a month. Those findings stem from Nationwide’s second annual Small Busi...

We have previously posted that a good Data Breach/Cyber Liability Insurance offers 1st party and 3rd party coverage.  It needs to respond to the following exposures: 1st Party Claims 1.       Incident Response Services 2.       Ransom demands to unlock your system. 3.       Notification requirements costs from federal & state laws & regulations to your clients that have suffered a data brea...

Ransomware attacks against businesses will be four times higher in 2016 than last year, with a growing number of ransom-seeking hackers demanding bitcoin rather than money, according to a report by specialty insurer Beazley. The Beazley Breach Insights report (http://bit.ly/2eGI2iI ) is based on the insurer’s client data breaches in the first nine months of 2016.  During the first nine months of 2016, Beazley Breach Response (BBR) Services unit managed 1,437 data ...

Everyday there is another WikiLeaks purported release of new e-mails or data hacked from some organization.  Most recently their favorite target has been the Democratic Nation Committee and Hillary Clinton.  While WikiLeaks appears to have gotten their information from the Russians, the data breaches are not always from an external source. Mossack Fornseca’s Panama Papers exposure of over 11.5 million client documents appears to have been an inside job.  You do not have to ...

If there is not enough paranoia in the world, over 1/3 of IT professionals believe that their systems are already infected.  To find out more  read: The Enemy Within: Are Cyberattackers Embedded In Your System? Isnt time to think about Cyber Insurance/Data Breach? Let L Squared Insurance Agency help you acquire this needed insurance Coverage.

In a ransomware attack close to home, the Lansing Board of Water & Light (LBPL), a Michigan municipal utility, in May paid a $25,000 ransom to unlock its internal communications systems after they were disabled by a cyberattack.  General Manager Dick Peffley told the Lansing State Journal it cost about $2.4 million to respond to the emergency, including paying for the ransom and technology upgrades to prevent future attacks.  He says all but $500,000 of those costs are covered by ...

Hackers are holding San Francisco’s light-rail system for ransom.  For more details on what took place click on Cyber Attack San Francisco.

While the highly published hacks on the DNC (Democratic National Committee) and more recently coming to light of the hacks of the RNC (Republication National Committee) by the Russians.  It appears that the Chinese have also been busy with gathering information on commerce.  Some of the Chinese targets have been some of the largest US Law firms.  The  Fortune Article detailing these attacks speak of using this information for among other things insider trading.  W...

According to one ABA report 23% of law firms didn’t know if they had a data breach.  This is a troubling statistic in that another ABA report stated that around 15% of all law firms have had a data breach.  Today it is not so much “if” your law firm will have a data breach, but “when.”  Will your law firm be prepared that handle the data breach or will your firm be in the 23% of the firms that do not even know whether they have had a data breach. Att...

Many recent examples point out that law firms are not immune to Cyber Crimes.  An ABA article asks whether your firm has Cyber Insurance.  It gives as an example a 2015 incident where a four-attorney California Law Firm had a cyber attack experiencing the “Cryptolocker Ransomware ”.  Although the article wrongly states that the applications for cyber insurance are time consuming.  They are not.  This used to be true but it is no longer the case.  Many of...

To start the year on a positive note, the Website NoMoreRansom.org is a project that is just starting up that has tools that may or may not help if your hit with Ransomware.  This is a good website address to keep around just in case. Starting with just 4 organizations in July 2016, there are now over 34 different Law Enforcement and Security Company partners that have collaborated to support NoMoreRansom.org.  Currently 32 decryption tools are on the site that may help you get y...

According the BBC report  CFC Cyber Insurance Claims have increased 78% for data breach/cyber-attacks.  The claims came in at a rate of more than 1 a day in 2016 for this insurer.  They have seen large amounts of login details stolen and shared more frequently. The data breaches were proving more popular as the selling stolen confidential information or using the stolen login information to steal cash.  Interestingly enough ransomware attacks were only the 3rd most frequent ...

Cyber Liability—The Friday Afternoon Fraud According to a report out of the UK from the Solicitors Regulation Authority, over 75% of the Cybercrimes reported were from the “The Friday Afternoon Fraud”.  This involves criminals modifying emails directly, usually by hacking into the email system of an individual. They then alter the clients emails to the solicitor (attorney) or vice versa, altering bank details so funds go to the criminal. The majority of cases involve conv...

Human Resource and payroll departments should be aware of an IRS alert that was released on January 25, 2017 providing information about an email phishing scam making its way across the country.  The scam originated last year, and the goal of the scam is to gain access to personal information contained on employee W-2 forms.  Cybercriminals will send an email to an HR or payroll department using a corporate officer’s name (such as the company CEO), and request a list of employees...

According to a report by Quartz Media, Ransomware attack frequency steadily increased in 2016 to almost 300 million attacks in the 4th quarter of 2016.  In total the number of Ransomware attacks went from 3.8 million in 2015 to 638.2 million in 2016.  Here are some of the reported recent victims:   Date Incident Payment ...

LawyerCare Medmarc A Proassurance Company CyberCare® Coverage: Overview Thursday, March 16, 2017  2:00 to 3:00 PM EST Registration Closed  In this webinar Michael Lamprecht will discuss potential cyber threats facing law firms and suggest solutions available to protect against catastrophic cyber losses. Law firms are repositories of valuable information and are targeted by hackers, no matter what areas of practice. This presentation will consider the unique cyber risks...

You can’t undo a data breach once it happens, but you can help mitigate the data breach damage and save your firm’s reputation by responding correctly. Early warning signs of a breached include erratic behavior of computers such as new software suddenly appearing on your hard drive, new features/functions mysteriously added to your web browser toolbar, and antivirus software settings that are changed or turned off seemingly on their own. Here are four steps you ...

At one time all you had to do to secure your business was to lock the money in the safe, lock the file cabinets and lock the doors.  A physical wall of protection to secure your business was all you needed.  Those were the good old days, at least that was what we were told.  Times have changed and none of us believe in fairy tales.  In today’s integrated world that business model is as obsolete as a physical wall. To compete in today’s world,  a firm needs t...

A few months ago we mentioned a suit Shore v Johnson & Bell (Docket No. 116cv04363) concerning a potential class action suit against the firm for not having security measures up to industry standards and thus not properly protecting client data.  Turns out that the Johnson & Bell client retainer agreements in question have an arbitration clause.   Suit was dismissed in Federal court and is now in arbitration. An article by Jennifer Quinn Broda of Sedwick LLP makes some in...

According to one report, in the 1st 2 months of 2017 13 million people have had personal information compromised.  In February some of the companies that were impacted were the music festival Coachella , the Arby’s restaurant chain, a company that creates stuffed animals CloudPets and the Intercontinental Hotel Group.  In February, customer names and email addresses topped the list as the most-often stolen pieces of data, each impacting roughly 46 percent of the companies reporti...

As the frequency and cost of a Data Breach continues to increase.  Firms need to look more closely at the kinds of insurance that they have and what they need to properly cover a Data Breach or Cyber Incident.  1st firms need to look at the typical policies that almost all firms have. Why your other insurance policies will not do the job. Your current policies are very limited in how they will response to a cyber incident or data breach event.  Not understanding the limitations ...

In what the US Attorney’s Office stated should be a “Wake Up call to all companies”, 2 unnamed high tech firms were duped out of over $100 Million by a Lithuanian man.  The Lithuanian man, Evaldas Rimasauskas, is charged in using a phishing e-mail scam to garner the monies from the 2 companies. From 2013 to 2015, Rimasauskas had set up a number of similarly named companies complete with bank accounts to have the money wired to.  The phishing e-mails were sent to comp...

Here is another twist on Phishing e-mails that are costing many firms thousands if not millions of dollars.  According to law enforcement this is a common story involving business email compromise (BEC) or CEO fraud.  While the boss is away the e-mail comes in marked “urgent”, “payment”, and “request”.  The accountant, bookkeeper or CFO then sends monies per the e-mail instructions to parts unknown. To read more about the CEO fraud and how this...

From our friends at The Hartford to click on the article 7 Passwords that you should never use: Click Here

We received the attached notice from Intermedia that you should be aware of.   The L Squared Tech staff also states that you should be particularly wary of RTF (Rich Text Format) files.   Microsoft has stated that they will be releasing an update on April 11, that addresses the issue.  If you have auto update on you will get the updated automatically.  Otherwise you are urged to update as soon as the patch is released.  For more details on this update,  Click ...

We have blogged about this before.  HIPPA information needs to be protected.  If there is a breach, then the clock starts clicking.  Chicago based Presence Health’s failure to provide notification with the 60 day time from results in an enforcement action costing the firm $475,000. To read more about this enforcement action by the Department of Health and Human Services click on:  Enforcement Action L Squared Insurance Agency can work with entities to provide the pro...

This is a new word to add to your vocabulary of Phishing, Spearing, Trojan Horses, and Malware.  Most of you know that if you decide to go to the dark side of the web and open your typical XXX site you likely are going to get infected.  But much of the Malvertising is being found place ads on legitimate sites like Reuters, Youtube or the New York Times.  The cyber criminals pack these ads with viruses, spyware and malware.  Now you are one of the people that never click on ...

A little over a month ago we blogged about 2 Giant Tech Companies that were duped by a Lithuanian man out of over $100 Million in a Phishing Scam:  To read the initial blog click below.  2 Major Tech Firms Scammed out of $100 Million  The BBC has gotten information that the 2 Tech Giants were Google and Facebook.  To read more about this click below: Google and Facebook duped in Huge Scam    

If you got an e-mail from hhhhhhhhhhhhhhhh@mailinator, opened it and responded, you need to read this BBC Article.  The bad guys may already have your e-mail password and your google docs and you may have spread the malware to all of your friends.

Law Firms that are relying on their Business Owners Policy (BOP) or their Attorney Malpractice Policy to cover Cyber Exposures should pay attention to the Rhode Island Law Firm that was hit with Ransomware.  According to the ABA Journal Article, the Law Firm of  Moses Afonso Ryan Ltd was hit with a Ransomware attack that essentially locked its computers for 3 months before they could be restored.  Sentinel Insurance (Subsidiary of The Hartford) wrote the firm’s BOP.  Se...

According to the BBC, this bug, in Microsoft anti-malware software such as Windows Defender, could be exploited without the recipient even opening the message. Researchers working for Googles Project Zero cyber-security outfit discovered the flaw at the weekend. The fix was specially pushed out hours before the software giants weekly Tuesday security update. Hackers could exploit the flaw simply by sending an infected email, instant message or getting the user to click on a web brow...

I have personnally recieved 2 bogus e-mails from "Dousign.com" this morning.  If you look below, this is part of what one of the e-mails looks like.  DocuSign has about 200 million users and has been embraced as a quick and secure way to sign contracts and other official documents using even a finger on a mobile device.  Leading Lenders and Insurance Carriers rely on DocuSign to electronically transmit executed contracts and other sensitive documents that need to be signed.  ...

With cyber-attacks frequency increasing, we continue to blog about the need for Cyber Insurance/Data Breach Coverage.  But just what policy should you buy?  Unfortunately there is no right answer to that question.  With Cyber Insurance being very new there is no policy or coverage standardization.  To make matters worse, ‘common’ terms are defined differently from policy to policy. Cyber Insurance carriers are also being very cautious about what they cover. ...

According to a BBC Report Apple Mac Computers are now being targeted by ransomware and spyware.  To read this article Click Apple Mac Ransomware

Cyber Insurance is a fairly new product with no standardization between insurance carriers, much of the cyber policy language has yet to be subjected to a ‘real world’ review in the courts.  Not all cyber policies are created equal and great care needs to be taken to make sure that the coverages selected and the language in the policy meet the insured’s needs.  A case in point is InComm Holdings, Inc. v. Great Am. Ins. Co; where a Cyber policy was issued by Great Amer...

Even large sophisticated law firms such as DLA Piper are not immune to Cyber attacks.  According to the ABA Journal DLA Piper was struck by a ransomware attack on Tuesday.  It is impacting offices in the US, Europe and the Middle East.  It appears that this attack started in Spain and spread to the rest of the law firm.

Professional Solutions Insurance Company has created an overview on cyber attacks.  To see this document click below.   Protect yourself:  Trust Accounts and Email Scams

As recently as today, Fedex was stating that many of its overseas deliveries are still being impacted by last months cyber-attacks.  According to a Lloyd’s Report (Closing the Gap) the long term impacts of a cyber-attack on a business are being underestimated. Key Findings of this report were: The types of cyber-attacks against businesses vary from sector to sector and are constantly evolving. For example: –        There has been a ma...

All of us have heard or seen reminders of cyber-attacks.  Most cyber-attacks start by literally having an employee open the door for the cybercriminal.  With the increasing frequency of cyber-attacks the 1st defense needs to be education.  Having your employees and staff trained to recognize the threats this is that 1st step. The attached Hartford article describes the 4 major cyber-attack types and what to watch for. Click 4 major types of cyber attacks As part of this short ar...

Some people may be surprised how the courts interrupt what is a computer crime.  In a recent case American Tooling Center Inc (ATC) v Travelers Casualty Insurance (Travelers) in US District court the Judge ruled that even though the manufacturer lost over $800,000 via the use of fraudulent e-mails the Travelers Cyber policy did not provide coverage for this exposure. From the court transcript: “On March 18, 2015, ATC’s Vice President/Treasurer, Gary Gizinski, sent an email to h...

Many people because of poor data connections or because they want to save data on their data plan are always looking for public WIFI to hook into.  Most people that use public WIFI are aware that they should never conduct confidential work over a public WIFI connection as you never know who is watching.  So they never open confidential files and share on a public network. Guess what cyber criminals know that people are looking for ‘free’ public WIFI and some have set up th...

An article from the Insurance Journal, 5 Reasons Cyber Security is Failing and What P/C Insurers Can Do About it, states 5 reasons why it is not working: 1.    Common misconceptions. Most people understandably think of cyber security as an IT problem. “For most people, the inner working of information technology is somewhat of a mystery. It makes, somewhat, sense that it’s both the cause and the cure of a lot of the problems,” Garrett said. But IT is not th...

This appears to be a case of The Friday Afternoon Fraud that we have previously blogged about.  According to a Housing Wire post American Pacific Mortgage (APM) is suing its insurer Aspen Specialty (Aspen) for a fraudulent wire transfer that occurred in 2015.  According to APM a hacker impersonating the mortgage company’s former CEO managed to get APM to wire transfer $75,000 to a fictional company.  Aspen Specialty denied the claim.  ATM states that none of its systems...

The BBC report states over 711 million e-mail addresses have been scooped up by a spambot.  Some of the compromised e-mail addresses also contained other personal information that can be used to help phishing e-mails target your e-mail accounts.  In some cases the e-mail information stolen may also contain passwords. The sever containing this spambot is located in the Netherlands but has not yet been shut done. There is a website that you can use to see if your e-mail address was one ...

It has been widely reported that Equifax had over 143 million peoples confidential information such as Social Security Numbers, Drivers Information, birth dates and addresses stolen.  Equifax was heavily criticized for waiting until September to announce the hack to the general public.  Equifax knew about this hack on or before July 29, 2017.  What you may not know, as reported in the LA Times is that: "Three days later, according to Securities and Exchange Commission f...

According to CNBC someone or persons on August 21, 2017, bought over 2600 contracts with the right to sell Equifax stock for $135 a share in September.  Each contract cost the buyer 60 to 70 cents each, with the right to sell 260,000 shares in September.  Equifax shares are currently trading around $111.00.   At that price if those contracts are executed today, the holder of the contracts could generate over $6.2 Million in profits. CNBC states that in a normal month, July 2017 f...

The journey with Equifax continues.  A company that not only allowed 143 million customers private information to be stolen, took over 5 weeks to disclose it to the public, has now realized that it had Tweeted out to some Victims a Scam Website to get their Credit Frozen.  The scam site looked just like the real thing asking for social security numbers, dates of birth and addresses.

A large health insurer found out that the window envelopes that it was mailing to policyholders were not only showing the address, but sensitive personal confidential information.  As this was done on a mass mailing to policyholders it caused a massive privacy breach for the company. Some times not just focusing on the big picture and skipping over the details can be costly and embarrassing.   To read more of the story Click Data Breach  

Given the current highly publicized SEC and Equifax data breaches that are studies in what not to do, a current article in Mondaq  gives tips on how advance planning before cyberattacks and data breaches can mitigate the overall risk. The recommended actions that need to be taken are: 1.      Cybersecurity Corporate Governance is Essential—Have appropriately tailored cybersecurity policies and procedures that establish standards for all employees. 2. &...

As we continue to learn the depth and breadth of the Equifax Data Breach no one still knows who stole the information.  What we do know is thanks to the total lapse of controls at Equifax cyber criminals got away with Social Security numbers, birth dates, and driver’s license numbers.  This is the gold standard for identity thieves.  Freezing your credit may do little to protect yourself against many identity thefts. Consumers Reports published an article on other tasks tha...

With the frequency of data breaches and cyber incidents increasing, keeping you law firm’s computer systems up-to-date and applying the best cyber procedures is no longer just something you need to do to protect the firm’s assets, it is likely an ethical issue as well.  A recent ABA article outlines basic steps that need to be taken by all law firms: 1.       Backups—Basic data processing 101, offsite daily encrypted backups are a must. ...

Attempting to keep our clients informed about the risks of a data breach or cyber-attack we periodically send out reminders to clients that do not have cyber insurance of the need to have cyber insurance.  We also make our clients aware of cyber security webinars when they occur.  Unfortunately many clients ignore the webinars and the need to have cyber data breach insurance coverage.  Telling our clients that a cyber-attack will happen to them is close to a certainty.   ...

A recent Better Business Bureau (BBB) study found that half of all small businesses would not be profitable if they lost critical data for more than 30 days.   And while 81% use antivirus software and 76% have a firewall, most are lacking in the most cost effective prevention tool; employee education.  The BBB report focuses on a.       Cyber Security standards—a voluntary standard from the National Institute for Standards and Technology (...

Computer viruses/malware, phishing and social media contribute too many of the hacks of computer systems.  But many of the hacks are made easy by passwords that should never be used.  Untrained employees are the easiest entrée into your computer systems. The following are some of worst and most common passwords:  123456 123456789 qwerty 12345678 111111 1234567890 1234567 password 123123 987654321 qwertyuiop myno...

A number of media outlets, including the BBC, have reported that certain HP Laptops have been shipped with KeyLogger software on them since 2012.  This means that every keystroke on affected HP laptops could be viewed by 3rd parties.  The affected HP laptops are listed on the following site with the software patch that needs to be installed to remove the KeyLogger. Affected HP Laptops

When people think of a data breach’s they often think of a cyber-criminal breaking into a computer system and stealing client/customer personal information.  They are not all very high tech.  This is an actual occurrence that recently happened:   We made an inadvertent disclosure of client’s family’s personal information (including Social Security numbers) to third parties as follows:   On Wednesday a legal assistant was printing copies from our printe...

This is information supplied by a tech support vendor, that may be helpful.   In case you missed it, it was announced last week that there are very wide-spread vulnerabilities that involve almost every CPU made since 1995. The “Meltdown” and “Spectre” security threats will impact everyone, as all major chipset vendors, operating systems, cloud providers and application makers are affected. In simple terms, it will affect computers, laptops, servers, tablets and p...

According to the BBC, Android Smartphones since 2012 been targeted by malware dubbed Dark Caracal.  The malware was designed to look like WhatsApp and Signal which had stolen gigabytes of data.  This malware was aimed at Attorneys, Military Personal, Activists and Journalists.  The stolen data ranged from call records, audio recordings documents and photos. Google states that it was confident that the infected apps did not come from the Google Play Store, but many users may have b...

While everyone focuses on Cyber Security and are worried about high tech break-ends.  This is yet another reminder that not all Data Breaches need a computer.  The Australian government had disposed of some filing cabinets.  They were recently found at a 2nd hand shop where the contents were revealed after the cabinets were pried open.  Thousands of top-secret documents from the Australian National Security Committee spanning over the past two decades were revealed.  A...

By James OBrien of The Hartford Data Breach Owning a small business means owning data. You’re constantly acquiring new information related to your customers, your financial details, and all the vendors and contractors with whom you work.  One cyber criminal, though, one lucky hack, and you’ve just exposed your business to a major blow. From lost trust among your clients to costly lawsuits for the damage done, protecting your company from data theft is am...

By Nate Hindman of The Hartford There’s nothing quite like the dread you feel after realizing you’ve sent a questionable email at work. Maybe you notice that the target of your email’s scorn was still CC’d, or maybe you’re a victim of the ever-dangerous accidental-send midway through introducing yourself to a new contact or client. Whatever it is, you’ll never, ever get that email back. That’s the bad news. The good news, though, is that ...

How to Respond if Your Companys Data is Taken Hostage   By Tom Kang of The Hartford   The first ransom note in American history was written in 1874, when kidnappers demanded $20,000 to return four-year-old Charley Ross to his parents. “You wil have to pay us before you git him from us, and pay us a big cent to,” the note read.   Ransom notes have come a long way since the hand-scribbled messages of post-Civil War times. In our modern-day digital world, their fo...

The Hartfords Tom Kang wrote a recent article on How to Respond to Ransomware.  It is a worthwhile read: By Tom Kang   The first ransom note in American history was written in 1874, when kidnappers demanded $20,000 to return four-year-old Charley Ross to his parents. “You wil have to pay us before you git him from us, and pay us a big cent to,” the note read.   Ransom notes have come a long way since the hand-scribbled messages of post-Civil War times. In our mode...

Concerned about Privacy and Data security.  Turns out the Facebook might be tracking all of your phone contacts and phone numbers.  A BBC reporter, Rory Cellan-Jones just wrote an article entitled If I’ve got your number, so has Facebook. Little scary and creepy what he found Facebook had been tracking on him.  So if you are like me and use your phone as an extension of your office, likely information you thought was private and confidential is out there for t...

According to the ABA 2017 Legal Technology Survey Report over 22% of the law firms that responded to the survey had experienced a data breach in the past year.  The highest percentage by firm size was 49% of the 10-49 attorney law firms having a data breach in the past 12 months. One of the consequences of a data breach is when client data may be exposed to unauthorized access.  Approximately 11% of the law firms stated that they gave notice to their clients after a data breach...

In the past we have blogged about attorney malpractice policies not answering cyber claims and that even though a business owner’s policy (BOP) may contain some cyber coverage, it likely will not provide all of the coverage and limits that a true cyber policy provides.  This is a recent cyber claim that illustrates those points.    The Coverage   There was no coverage for this claim under the attorney malpractice policy.  Fortunately, the Firm did have a BOP t...

Identity theft continues to rise.  Want to be a target?  Posting personal details on social media like loans, credit cards or phone contacts will put you in the crosshairs of cyber criminals.   It can leave victims with big bills, or a bad credit rating (the points-based system lenders use to decide if you can borrow their cash).  The advice isnt to drastically change from what you do online, but just think about it first and make sure your privacy settings are tight. &nbs...

2018 Webinar Series for Legal Professionals Cybersecurity and the Future of Legal Malpractice Claims A Risk Management Resource for Legal Professionals A Risk Management Resource for Legal Professionals ...

Travelers Insurance has developed a ‘Pressure Test’ for your Cyber Risk.  Once completed the site provides many helpful hints for managing the Cyber Risk.  To take the test click on:   Cyber Security Pressure Test   If you want help with your Cyber Insurance needs, please contact L Squared Insurance Agency.  We will be happy to put together a program to help manage your exposure to Cyber exposures.

Cyber Threats by the Numbers from Travelers Insurance 1.       Cyber Remains the #2 risk concern among businesses overall 2.       1 in 5 businesses have suffered a data breach or cyber-attack, double the number in 2015 3.       52% of businesses consider it inevitable that they will become a cyber victim 4.       36% of businesses are concerned about someone deceiving thei...

Session 10: Understanding Cyber Risk in the Cloud Almost all businesses are using one or more services in the cloud. Bu...

Remember the TV show that voted you off if you were the weakest link?  A number of studies have concluded that the person at the keyboard is your weakest link and the greatest data security threat.  In fact employees were the number one cause of data breaches in small and mid-sized businesses accounting for over 48% of all incidents.  Usually the breach was due to an innocent mistake because employees often lack basic awareness of data security and how hackers work. Employee educa...

PF Chang v Federal is a great case to discuss limitations in Business Owners Insurance (BOP)/Commercial General Liability (CGL) and Cyber Liability.  This case goes to the heart of making sure that your insurance coverages for malpractice insurance, BOP/CGL and Cyber Liability properly cover the firm’s exposures.  Attorneys are especially good at trying to argue (without reading the policies) that they have coverage for cyber and expect to have coverage for contractual liability ...

Likely you’re tired of blogs and articles that talk about cyber security.  Unfortunately we continue to see law firms that are stuck in the dark ages that either have been data breach or cyber security targets or will be soon.  Don’t make yourself an easy target.  Many firms have not taken the needed steps to address the issues facing anyone that ventures out in into the 2018 cyber world.   The top 2018 threats that you need to be prepared for are: 1. &nbs...

About 2 years ago we blogged about the data breach of the now defunct Panama Law Firm Mossack Forseca.  If you remember over 11.5 million stolen client documents were leaked to the press over a period of months  These leaked client files were dubbed the Panama Papers.  Mossack Foseca’s claim to fame was helping their wealthy connected clients hide money to avoid paying taxes. Now fast forward 2 years.  According to a USA Today article, four people that were involv...

According to a number of media outlets, a Hiscox Insurance Company spokesman confirmed that one of its insured Law Firms has hacked.  Dark Overlord is demanding a ransom to not release sensitive 9/11 documents. In a related post Hiscox Insurance had announced in April 2018, that information relating to up to 1500 Hiscox Insured firms may have been stolen from a law firms server.  

The National Counterintelligence and Security Center       Know your risk, raise your shield.  In a recent warning the National Counterintelligence and Security Center’s (NCSC) website put out a warning to all businesses: “Foreign intelligence entities, which may include foreign governments, corporations, and their proxies, are actively targeting information, assets, and technologies that are vital to both U.S. national security and our global competiti...

The following article is from Wilson Elser/Attorneys Advantage website that our clients that are with Aon/AXIS Insurance have access to. October 30, 2018 Author: David H. Potter Data breaches and cyberattacks are becoming more prevalent and law firms have quickly become attractive targets for hackers due to the sensitive and privileged information firms collect. This has prompted the American Bar Association (ABA) to release Formal Opinion 483, “Lawyers’ Obligations after an...

The last few blogs have been about cyber and data breaches.  We have blogged about passwords before, but sometimes the victims make it way too easy for the criminals.  I know you should not blame the victims for the crime, but number one on the password list was used over 23 million times in public databases of breached accounts according to a recent BBC Article. Seriously if you want to be hacked, here are the best passwords to use in order of use: 1.     ...

Published: February 13, 2017 Updated: May 24, 2019 9 Signs Your Small Business is About to Get Hacked Gene Marks ·         Data Breach   ·         Gene Marks You can never really tell if your small business is going to be hacked.  But the likelihood is high.  In fact, according to a 2015 report, 62% of small and medium sized companies have been hit by a data breach. ...

Law firms tend to ignore the cyber threats until it is too late.  Many are not carrying any cyber insurance unless a client requires it.  Without carrying the proper insurance coverage actions or lack thereof to a data breach may cause more problems in the future.  In addition to the indemnity payments for damages and required notifications, cyber insurance insurers have specialists that can bring the resources in play needed to do a proper investigation. On March 27, Hiscox Insu...

New eBook: 50 State Guide to Data Breach Notification Laws Hi , Every business, no matter its size, shape, customer base, or industry, has had to adapt to a new world because of the novel coronavirus. The same is true for cybercriminals. They havent just adapted, theyre thriving. Just like toilet paper and hand sanitizer manufacturers and remote meeting companies saw a boom in business, so too have the criminals. The FBI has reported a four-fold increase in the reports of cybercrime since...

For an attorney malpractice policy to cover a cyber claim it must cause a 3rd party covered client lost for attorney malpractice.  Even when it triggers the malpractice policy, the policy likely will only cover a portion of the claim that deals with monetary damages to the client.  The following claim did not trigger the firm’s malpractice policy.  But there were expenses because of the data breach.   The Cyber Claim   On June 1, 2019, a Firm attorney received ...

400% Increase in Cybercrime during COVID-19   No matter its size, shape, customer base, or industry, every business has had to adapt to a new world because of the novel coronavirus. The same is true for cybercriminals. They havent just adapted, theyre thriving. Just like toilet paper and hand sanitizer manufacturers and remote meeting companies saw a boom in business, so too have the criminals. The FBI has reported a four-fold increase in the reports of cybercrime since the pandemic be...

Best Cyber Attack Advice for Clients View “The Legal Perspective,” a webinar by ProWriters President Brian Thorton and Jennifer Coughlin of Mullen Coughlin about legal considerations  when a cyber attack happens. As a law firm dedicated to cyber security, data privacy, and breach plan response, Mullen Coughlin is no stranger to cyber attacks—in fact, it handles more than 3,000 breaches a year. That’s why Ms. Coughlin knows firsthand the import...

Berkshire Hathaway’s AmGuard Lawyers Professional Liability Insurance policy provides data breach coverage as an additional coverage.  Few other malpractice insurers provide this as part of their base policy.  Other malpractice insurers specifically exclude this coverage. While this important coverage is included, it is not a substitute for a complete Cyber Insurance Policy. The 3rd party damages from a data breach involving Client Personal Identifiable Information (PII) requi...

Data breaches are becoming increasingly costly for companies. In fact, the average total cost of a data breach grew from $3.86 million in 2020 to $4.24 million this year. The increase in expenses coincides with a significant upswing in ransomware attacks—today’s average weekly ransomware activity is 10.7 times higher than in June of last year. Companies are now under renewed pressure to protect their networks. Finding the right insurance coverage ensures they can continue operatio...

Data Breach/Cyber - Tips, Tricks, and Practices (1 CPE) MAY 23 @ 1 PM In this updated presentation, Rob Ferrini will bring his experience counseling clients to discuss how to best protect your organization’s brand, value, and assets in the face of a challenging insurance market, ever-growing attacks of accounting firms, and increasing cyber security requirements. He will also provide practical steps your firm can take to reduce risk and qualify for coverage at a reasonable price. &nbs...

Cybercrime is one of the fastest-growing types of crime in the United States. Microsoft reports that password attacks have increased tenfold in the past year, with nearly 4000 attacks per second. Cyberattacks are growing not just in number but also in sophistication. Artificial intelligence tools allow threat actors to utilize sophisticated social engineering attacks that implement generative AI and deep fake technology into existing phishing attack vectors. Determining legitimate business com...