Modern Age Are Cyber Attacks And Data Breaches Essay

707 Words 3 Pages

Some of the difficulties facing large corporations in this technology driven

modern age are cyber attacks and data breaches. Recently, we have witnessed

security breaches in high-profile companies like Sony Pictures Entertainment,

Home Depot, Target, and EBay, in which all of these organizations have lost

confidential data like personal records, and financial information. To counter

these attacks companies invest a lot of money on insurance to cover any issues

with confidential data, but ever since all of these high-profile companies have

been attacked the insurance rates are on the rise. According to Retuers report,

“Insurers are raising deductibles and in some cases limiting the amount of

coverage to $100 million.” This limit makes it difficult for the organizations to

operate and in turn would lead to these companies passing on the cost to the

end consumers. Furthermore, if companies chose not to get insured, and they

are attacked, those hacks can be very expensive, as they have to pay for

forensic investigation, credit monitoring, legal fees, and settlements.

Rising cyber insurance premiums, and the limited damage coverage

essentially mean that organizations could be liable to pay more if they’re hit with

a cyber attack. Similar attacks in 2013 cost Target and Home Depot nearly 230

million in expense, but insurance only covered up to 100 million. The question

then becomes how can companies prevent and identify such malicious…

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