Insurance agents are at the forefront of handling sensitive health-related, personal, and financial data. They are thus prime targets for cybercriminals at a time when cybercrime is expected to cost the global economy more than $10.5 trillion by 2026 and when the global cyber insurance market is expected to soar by nearly a factor of six by 2032, to $120.47 billion.
Agents must remain attentive; recognizing the scope of their risks strengthens security.
Types of Cybercrimes and Their Prevention
Cyber risks are growing more complex. Here are typical forms of cybercrime and how you can safeguard your agency.
1. Malware
Malware, or malicious software, intends to penetrate and destroy systems while frequently stealing important data. It can take many forms, including viruses, worms, and trojans. Email attachments or USB devices can spread it.
Prevention Tips:
- Install and update antivirus software: Do not forget to renew your antivirus software because it is always the first step to detecting new malware.
- Educate your team: Teach your employees to recognize unwanted emails or connections and avoid downloading unauthentic software files. In addition, ensure spreading awareness about emails with attached files received from an unknown source.
- Regularly back up data: Always back up your data to prevent data loss due to malware infecting your computer.
2. Phishing
Phishing attacks are socially engineered techniques in which an attacker spoofs as a trusted entity. Phishing aims to deceive people into disclosing sensitive information, tempting them with convincing calls to action or offers to click on dangerous websites. These URLs are often distributed via email, SMS, or calendar invitations.
Prevention Tips:
- Check whether the sources of the email are verified: Always check if the sender's address is correct and watch out for odd requests.
- Get multifactor authentication (MFA): Extra security measures prevent unauthorized access, even if the login credentials are exposed.
- Use spam filters: Use enhanced spam filters to block phishing emails before they reach your inbox.
3. Ransomware
Ransomware is software that encrypts files and demands money for their release. Ransomware potentially causes irreversible data loss as well as financial and operational destruction.
Prevention Tips:
- Make regular backups of your data: This creates a safe copy of your data that you can retrieve after ransomware breaches.
- Always keep your software up to date: Secure your operating systems and applications by keeping them up to date. Ensure you fix all the vulnerabilities that ransomware can use.
- Set administrative permissions to the least level: Another best way to keep ransomware from spreading through your network is limiting user privileges.
4. Insider Threats
Insider threats emerge from within an organization. They can be deliberate or unintentional. Any current or former employee, contractor, or business partner can misuse their rights. They can steal data or fall for a phishing scheme, resulting in a cyberattack.
Prevention Tips:
- Set access controls: Enforce policies so employees only access the information necessary for their job. Also, update the roles that people currently hold.
- Administer employee activity: With the monitoring tool, you can discover unusual actions that suggest an imminent insider threat.
- Positive work environment: Having many dissatisfied employees may lead to the likelihood of insiders committing fraudulent activities.
Implement preventive steps and stay current on prevalent cybercrimes to considerably lower insurance agency breaches. Staying up to date on cybersecurity defenses can secure your business and clients from online threats.
Best Cybersecurity Practices for Insurance Agents
Insurance agents must prioritize their clients' information with robust cybersecurity practices:
1. Comprehensive Security Training
Ensure that your employees are frequently trained in how to identify forms of cyber threats and how to handle them. This will provide the first level of protection against attacks and makes most tasks within your agency secure.
2. Using Digital Certificates
Insurance agents should use SSL certificates to keep clients' sensitive data secure. These data include names, addresses, emails, and Social Security numbers. SSL certificates create a secure layer to share data between the user and server.
Using HTTPS maintains your business reputation. When an insurance company or website does not use an SSL certificate, Google flags that as a non-secure site, which can affect your brand identity.
There are various types of security certificates based on the needs of businesses. Companies can choose from multiple certificates like domain validation, wildcard SSL certificate, and extended validation.
3. Multifactor Authentication (MFA)
Implementations relying on or only using passwords for the authorization of the systems are not solid enough. Integrating MFA takes security to the next level and can be done simply:
- Login Verification: Ask your employees and clients to enter a secondary code sent to their mobile devices after they enter their passwords, or have them unlock their devices with a fingerprint.
- Hardware Tokens: High-level employees who might have to deal with sensitive data can use hardware tokens that generate time-sensitive codes that allow access.
4. Regular Data Backups
Backing up should be considered in the same way as an insurance policy for your data. Backing up relevant data often enough means that you can get back into operation in a short time after a cyberattack or failure of IT systems. When it comes to backups, go for several tiers of backup, such as local, offsite and cloud-based.
Types of Backups:
- Local Backups: Use external hard drives or NAS devices.
- Offsite Backups: Consider tape or remote server backups.
- Cloud Backups: Use AWS, Google Cloud, or Microsoft Azure for scalable, automated solutions.
5. Controlled Access to Data
Not every employee working in your agency requires access to all the data available with the organization. It is necessary to enforce information security policies that would limit the accessibility of specific data to a few individuals. This helps reduce the harm coming from internal threats and minimizes the possibilities of a leak of the firm's information.
6. Secure Communication Channels
Security will always recommend the use of encryption when it comes to communications. Make sure that all data are encrypted, while they are being transferred, as well as during storage. This helps to eliminate instances where third parties may be intercepting and decoding your information.
7. Engage Security Professionals
It could also be wise to seek help from professionals as a viable strategy. Whether you hire your security team or consult cybersecurity specialists, it is always beneficial to have someone knowledgeable guide you when assessing and addressing risks.
8. Network Traffic Monitoring
Surveillance of the network must be done keenly. Network monitoring lets you identify suspicious activities likely associated with a cyberattack. It is also important for organizations to learn to prevent a breach from happening in the first place or at least provide early alerts.
9. Incident Response Planning
Even with the best efforts, you can still find yourself facing a breach. In the event of a security incident, your team must have a clear copy of the response plan. This can greatly reduce the time it takes to recover from an attack and minimize data loss.
These security measures effectively safeguard sensitive data and protect your agency.
